If you have an idea for a small business in Alabama, it is likely an exciting time in your life. You have an opportunity to bring people a helpful service or product while making a sound income yourself.
It is crucial to the success of your business that you follow all of the requisite steps so that you have all of the certifications and tax hurdles attended to. You should make sure you have taken care of all of the steps on the following list before you take your business public.
Small Business Advice points out that if you are hiring employees, you need to make sure you have workers’ compensation insurance. You also need to pay for unemployment compensation tax. You will also need to provide information within 20 days of any new hires to the Alabama Department of Industrial Relations.
You will need to provide a W-9 form to any new employees and ask them to fill it out to prove they are eligible to work in the U.S. Also, all employees must fill out a W-2 form and a W-4 form during tax season, which you will send to the IRS.
You will also need to send the IRS information on annuity and pension payments for your employees, your employer identification number, tax deposits and personal data of your employees. Be prepared to send records of your employment taxes for every fourth quarter.
Furthermore, you will need to search to make sure your trade name is not already taken. You must also register with the Alabama State Secretary of Business Services and obtain all required permits and business licenses. Finally, you must set up permits, licenses and identification numbers for tax registration which will differ depending on the type of business you have.