TAX & ACCOUNTING TIPS FOR STARTING A NEW BUSINESS

  • Register your new business entity/name with the state if needed: ND Secretary of State Website 

  • If you are a business other than a sole proprietor or you are a sole proprietor who will have employees, you will need a business tax ID called an Employer Identification Number (EIN). IRS Website for EINs

  • Open a Bank Account for your new business.  Keep your personal activity separate from your business books.

  • Consider your insurance needs: Will you provide services or products, do you have a storefront or place of business, and/or do you have employees?  All of these situations create potential risk and insurance can protect you.  

  • Will you sell merchandise?  If so you will need so apply for a Sales & Use Tax Permit & account number:  ND Application  

  • Will you have employees?  If so you will need to file a Job Service Report to Determine Liability, a ND Income Tax Withholding Account application, and a Workforce Safety Application for Insurance.  (Farm Entities are often EXEMPT from Job Service & WSI responsibilities)  Employers typically are required to file federal & state quarterly reports for payroll activity.  

  • Make a Bookkeeping Plan - whether you plan to handle your books yourself or hire out the service, be sure to keep your records current. Account for and reconcile all of your business activity run through your checking account and elsewhere.  QuickBooks is the most frequently used accounting software and there are Desktop software download or online options available.

Legacy CPA has vast experience in all of these areas.  Please contact us if you would like some help with your new entity setup.  If you would like to spend your time focusing on your small business or farm instead of your books, we would be happy to offer our services. 

NEW HIRE RESOURCE LINKS

 

IRS W-4

Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.

IRS I-9 FORM-9 FOR EMPLOYEE 

Along with the Form I-9, please be sure to get a copy of the new employee's driver's license AND social security card, OR passport.  For additional acceptable documents please see the instructions for the Form I-9.

HIRING AN INDEPENDENT CONTRACTOR, LAWYER, OR PAYING PROPERTY RENT?
- IRS W-9

We advise that you have a completed W-9 in hand before issuing a check for services or for rent.  Business proceeds used to pay an Independent contractor or an attorney more than $600 in a year need to be issued a 1099 NEC or 1099 MISC respectively.

WORK OPPORTUNITY TAX CREDIT (WOTC) - Local Counties Qualify Under Rural Renewal
 - A Tax Credit for up to $2,400 for new local hires ages 18-40

ETA FORM 9061

This form is used together with IRS Form 8850 to help state workforce agencies (SWAs) determine eligibility for the WOTC Program. Our region offers great opportunities for this credit available to our area employers. Contact us if you need help.

IRS 8850

Employers use Form 8850 to pre-screen and to make a written request to their state workforce agency (SWA) to certify an individual as a member of a targeted group for purposes of qualifying for the work opportunity credit.