Q: When starting a brand new business, how soon will I have to report it to the government and start paying taxes?
A:
We you start a new business, shortly after the business is established, you should apply to the IRS on Form SS-4 to obtain a new Employer Identification Number (EIN) for entity. You can find the form on-line, it is very easy to complete. You will most likely need this EIN to open a bank account for the new business.
With regards to the State, you will need to apply for a State Tax number ASAP and pay taxes on sales revenues.
If you have employees, you will need to pay the payroll taxes each Quarter. From a Federal point of view, if the business does not make any money, you are not going to be required to pay any taxes. Otherwise, at the end of the Company's fiscal year you will need to file a tax return and pay taxes on the Company's profit.
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