There is more to taxes than the April 15th deadline - we are sharing the…
Federal and NC State Tax Implications on New Startup Businesses
Are you thinking about starting a new business in North Carolina? Before you open up shop, it’s important to understand the Federal and NC tax regulations, and how they can and will affect your small business.
NC State Income Tax
All businesses operating in the state of North Carolina must register and file state income tax returns. Depending on how you decide to set up your business, whether it’s a sole proprietorship, corporation, partnership, etc., will determine how you pay those taxes.
All businesses must also register and file a federal tax return. In order to do so, you’ll need to register for a Employer Identification Number (EIN). This is especially important if you are going to be hiring employees.
You can sign up for an EIN by filling out the Form SS-4 and applying online. You can also contact the IRS by calling 800-829-4933 for assistance with the form.
Is your business going to have a physical location? If so, you’ll also need to register your business in the county in which it operates. You can register your business in your county here.
Other Taxes to Think About
While the major tax responsibilities are listed above, there are a few that could spring as your business grows and hire more employees. These include:
- Unemployment Tax
- FICA Tax
- Federal and State withholding Taxes
Tax Incentives to Help Start Your Business
North Carolina also offers certain incentives (read tax breaks) to new business owners. To qualify for tax incentives, you must fall into one of the following categories:
- Tier designations encourage development in less prosperous areas of the state
- Job development investment grant’
- Inventory tax exemption
- Interactive digital media tax credit
You can read more about the tax incentives here.
Consult a Small Business Accountant in Raleigh, NC
Start your business off on the right foot by consulting C.E. Thorn, CPA for your small business accounting needs. Contact us today by calling 919-420-0092 or filling out this contact form.
Feel free to call our office or to complete the contact form below: