With a new business start-up there are many things to oversee and decisions to make. Here are four things you should prioritize when starting a new business:
Determining Entity Type
Being a sole proprietorship has different tax implications than being an LLC; you need to pick what’s right for you.
Filing with the State
Once you’ve chosen an entity, you’ll need to file appropriate documents with the State. Make sure you do a search of available business names on the State website (www.cyberdriveillinois.com for the IL).
Once you’ve received acceptance from the State, you’ll need to fill out a form SS-4 to be assigned a Federal Identification Number (FEIN).
If you’ve chosen to incorporate, you’ll need to have the necessary forms prepared to elect S-corporation status. Ensure all forms are sent in within 90 days of your acceptance letter from the Secretary of State’s Office.
In Illinois, new businesses are also required to register with the Department of Revenue (Form Reg-1) and the Department of Employment Security (Form U1-1).
Please make sure to contact your local government for city and industry specific compliance