Starting a U.S. Business

When starting a U.S. business, you must decide what form of business entity to establish. Your form of business (for example, sole proprietorship, partnership, limited liability corporation) determines which income tax return form you have to file. The federal government levies four basic types of business taxes:

• Income tax
• Self-employment tax
• Taxes for employers
• Excise taxes

Federal Income Taxes

• Sole Proprietorship
• Partnership
• Corporation
• S Corporation
• Limited Liability Company (LLC)

Starting a U.S. Business - State Income Taxes

When starting a U.S. business you should be aware that states levy a business or corporate income tax. Like federal taxes, your state tax requirement depends on the legal structure of your business. For example, if your business is an LLC, the LLC is taxed separately from the owners of the business, while sole proprietors report their personal and business income taxes using the same form used to report their business taxes.

You're familiar with paying personal taxes. As a small business owner, you'll need to pay business taxes as well. All businesses are required to pay federal, state, and in some cases, local taxes. Most businesses will need to register with the U.S. Internal Revenue Service (IRS) and state and local revenue agencies in order to receive a tax ID number or permit.

Setting Up a Small Business in the United States

When setting up a small business in the United States you must be aware that in addition to business taxes required by the federal government, you will have to pay some state and local taxes. Each state and locality has its own tax laws. Having knowledge of your state tax requirement is vital when you are setting up a small business in the United States and can help you avoid problems and your small business will save money. The most common types of tax requirements for small business include:

Advice On Small Business - Tax Permit

In most states, business owners are required to register their business with a state tax agency and apply for certain tax permits. For example, in order to collect sales tax from customers, many states require businesses to apply for a state sales tax permit.

Advice On Small Business - Income Taxes

Nearly every state levies a business or corporate income tax. Your tax requirement depends on the legal structure of your business. For example, if your business is a Limited Liability Company (LLC), the LLC gets taxed separately from the owners, while sole proprietors report their personal and business income taxes using the same form. Consult the General Tax Information link under your state for specific requirements.

Advice On Small Business - Employment Taxes

In addition to federal employment taxes, business owners with employees are also responsible for paying certain taxes required by the state. All states require payment of state workers' compensation insurance and unemployment insurance taxes

• Every business needs to be licensed to legally operate. Depending on your business, you may need to be licensed at the federal, state and/or local level. Beyond a basic operating license, you may need specific permits, such as an environmental permit.
• Regulations vary by industry, state and locality, so it's very important to understand the licensing rules where your business is located. Not complying with regulations for licensing and permitting can lead to expensive fines and put your business at serious risk.

Cost Of Setting Up A Business in the United States

You can receive support to meet the cost of setting up a business in the United States.

SBA offers a variety of loan programs for very specific purposes. Take some time to study the programs described in this section, to see if you qualify to participate.

7(a) Loan Program

The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other businesses

Microloan Program

The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary organizations.

CDC/504 Loan Program

The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term loans.

It is vital that you reduce the costs of setting up a business in the United States but there may never be a better time to start a small business in the United States than now!

US Business Plans provide a business plan written exclusively for the U.S. market. The plan contains specific information for the U.S. and is the most comprehensive U.S. plan available on the internet. It contains information on U.S. legislation for your business that is vital for you to understand if you are in the United States.

US States