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August 15, 2008, Newsletter Issue #128: Business Registration Requirements


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Tip of the Week

When you form a new business, regardless of the formal structure for your organization, you are going to have to complete the business registration forms required for the municipality or jurisdiction in which your company is going to operate. Business registration form requirements vary greatly from one area to another. Most cities, counties, and/or states have business registration form requirements.



The primary reason that local and state governments require new business registration forms is to determine and manage the organization’s tax filing obligations. The information provided on business registration forms determines which types of taxes are applicable.



Depending on the type of business and or requirements of the local area, business tax obligations may include: sales tax, use tax, withholding tax, unemployment tax, vendor’s use tax, city tax, county tax, etc.



In addition to registering with the appropriate state, county, and/or city government, businesses must also register with the Internal Revenue Service (IRS). Those businesses that will have a payroll will receive a Federal Employer Identification Number (FEIN), which then becomes the tool by which federal tax liabilities are tracked and applied.



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