Tax Checklist for Starting a Small Business

The checklist below provides the basic tax-related steps you should follow to start a business. This is intended as a general guide, and is not meant to be all-inclusive.

• Once you select a business structure, determine if you need to apply for an Employer Identification Number (EIN).
• Start your tax year, choose your accounting method, and keep records.
• Learn about the types of federal business taxes.
• Consult (Publication 557) Tax-Exempt Status for Your Organization, if you are a nonprofit organization.
• Learn about your social security reporting requirements before hiring any employees.
• If you have employees:

  1. Prepare to meet federal employment tax requirements by reading IRS (Publication 15) Employer's Tax Guide, and (Publication 15a) Employer's Supplemental Tax Guide, or (Publication 51) Agricultural Employer's Tax Guide.
  2. Ask employees to complete withholding certificates:

     • Form W-4, Employee's Withholding Allowance Certificate (PDF), and Form W-5, Earned Income Credit Advance Payment (PDF).

• Determine your estimated federal tax payments and begin making payments:

  • Form 1040-ES, Estimated Tax for Individuals (PDF), or Form 1120-W, Estimated Tax for Corporations (PDF).