New Business Formation



Thinking of starting a business but don't know how? We can help you. All businesses must obtain a business license from the local city or county in which the business is being conducted. New business owners are advised to obtain a federal Employer Identification Number (EIN) and a state sales and use tax license, if applicable, before applying for a business license.


  • Business Name Registration

  • Federal/State Tax Registration

  • Local Business Licenses


Tools



Find out if you need to register your business Your location and business structure determine how you’ll need to register your business. Determine those factors first, and registration becomes very straightforward. For most small businesses, registering your business is as simple as registering your business name with state and local governments. In some cases, you don’t need to register at all. If you conduct business as yourself using your legal name, you won’t need to register anywhere. But remember, if you don’t register your business, you could miss out on personal liability protection, legal benefits, and tax benefits.

Small Business Tax Information FAQ


    What's Considered a Tax Deductible Small Business Expense?

      According to the tax code, just about any business expense that is "ordinary, necessary and reasonable" will qualify as a deduction that will decrease the profits of your business for tax reasons. But what are considered ordinary and necessary expenses? According to the Internal Revenue Service (IRS), these are any expenses which are "helpful and appropriate" for you business.

      For example, if you purchase a new computer for your small business, or buy stationary to send out your mailings, these expenses would probably be considered ordinary and necessary. However, if you buy a new computer for your son to use in his room, this would not be a business expense even if you ran your small business from home.

      There are a few expenses that are explicitly prohibited from being considered an ordinary and necessary business expense, such as:

      • Bribes to public officials;

      • Traffic tickets;

      • Home telephone expenses; and

      • Clothing that you wear while on the job (unless you are required to wear a uniform).

    I Use My Personal Car In My Business -- Is That a Tax Deductible Business Expense?

      The short answer is yes, but you'll need to do some calculations to determine how much can be deducted. This can be determined by using either the standard mileage method or the actual expense method. There are some situations when you must use the standard mileage rate, like when claiming a Section 179 deduction in the previous tax year.

      The standard mileage method is most commonly chosen because of its easier record-keeping requirements. Under this method, you can deduct a set amount for each business mile that you drive. For the 2019 tax year, the standard mileage deduction rate was 57.5 cents per business mile.

      If you use the actual expense method, you're allowed to deduct the actual costs you incur each year to operate your car for your business, plus depreciation. This can include costs for:

      • Gas;

      • Oil changes;

      • Repairs/maintenance;

      • Licensing fees;

      • Insurance;

      • Tolls; and

      • Car Washes.

      However, if any of these expenses were related to your personal use of the car, they could not be included in your deduction calculation.