CHASE LAW NAVIGATOR

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TAX

One of the biggest burdens on businesses is taxes. Namely, how to pay less in tax. Tax strategy may be confusing and complex but a business owner needs to know it in and out, and/or employ a tax accountant and/or tax attorney to make sure the business stays compliant as the law continues to change.

FEDERAL TAX (INCOME AND DEDUCTIONS)

How do I register to do business in my state?


Every state has a slightly different process for registering. Generally speaking, go to the secretary of state's website to begin. Secondarily, most states require that if you are not a resident of the state you are planning to do business in, you will need a registered agent to represent your interests for the purposes of service of process. Learn more here: https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx https://www.sos.state.oh.us/businesses/




Do I need to register my business with the federal government?


Generally, if you have a registered business entity, you will need to register with the federal government for tax purposes. First, you will need to register with the secretary of state in your state. The federal tax designation is called an EIN (employer identification number), which is the number that your business entity will use to pay taxes to the federal government. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online




Should I register my business anywhere other than my state and with the federal government?


Depending on where your business is planning to operate, you may need to register your business for various licenses in our city, county, township etc. This will require individual research in the jurisdictions your business is in. Learn more here: https://revenue.ky.gov/Business/Pages/Register-Business.aspx





PAYROLL TAX

How do I register to do business in my state?


Every state has a slightly different process for registering. Generally speaking, go to the secretary of state's website to begin. Secondarily, most states require that if you are not a resident of the state you are planning to do business in, you will need a registered agent to represent your interests for the purposes of service of process. Learn more here: https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx https://www.sos.state.oh.us/businesses/




Do I need to register my business with the federal government?


Generally, if you have a registered business entity, you will need to register with the federal government for tax purposes. First, you will need to register with the secretary of state in your state. The federal tax designation is called an EIN (employer identification number), which is the number that your business entity will use to pay taxes to the federal government. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online




Should I register my business anywhere other than my state and with the federal government?


Depending on where your business is planning to operate, you may need to register your business for various licenses in our city, county, township etc. This will require individual research in the jurisdictions your business is in. Learn more here: https://revenue.ky.gov/Business/Pages/Register-Business.aspx





PERSONAL USE OF BUSINESS ASSETS

How do I account for business use of my personal vehicle or personal use of my business vehicle? Can I write off all expenses to a business vehicle or are there limitations?


If you are using an asset (either personal or business) for both personal and business uses, you are required to keep track of the amount of use for each, and bifurcate those uses for the purpose of tax reporting. Business expenses can be deducted, personal expenses cannot. If you do not keep good records and then you get audited, the IRS will not give you the benefit of the doubt and you will not be allowed to have the claimed deductions for items not properly and reliably recorded. Learn more here: https://www.irs.gov/pub/irs-pdf/p15b.pdf




If I work from home, can I write off my house or home office as business expenses?


If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes. There are multiple methods for deducting such expenses that the IRS allows. See link: https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction




If my business pays personal expenses, can I write those expenses off?


Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses





SALES TAX (STATE AND LOCAL)

How do I register to do business in my state?


Every state has a slightly different process for registering. Generally speaking, go to the secretary of state's website to begin. Secondarily, most states require that if you are not a resident of the state you are planning to do business in, you will need a registered agent to represent your interests for the purposes of service of process. Learn more here: https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx https://www.sos.state.oh.us/businesses/




Do I need to register my business with the federal government?


Generally, if you have a registered business entity, you will need to register with the federal government for tax purposes. First, you will need to register with the secretary of state in your state. The federal tax designation is called an EIN (employer identification number), which is the number that your business entity will use to pay taxes to the federal government. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online




Should I register my business anywhere other than my state and with the federal government?


Depending on where your business is planning to operate, you may need to register your business for various licenses in our city, county, township etc. This will require individual research in the jurisdictions your business is in. Learn more here: https://revenue.ky.gov/Business/Pages/Register-Business.aspx





TAX ENTITY REGISTRATIONS (FEDERAL AND STATE)

How do I register to do business in my state?


Every state has a slightly different process for registering. Generally speaking, go to the secretary of state's website to begin. Secondarily, most states require that if you are not a resident of the state you are planning to do business in, you will need a registered agent to represent your interests for the purposes of service of process. Learn more here: https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx https://www.sos.state.oh.us/businesses/




Do I need to register my business with the federal government?


Generally, if you have a registered business entity, you will need to register with the federal government for tax purposes. First, you will need to register with the secretary of state in your state. The federal tax designation is called an EIN (employer identification number), which is the number that your business entity will use to pay taxes to the federal government. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online




Should I register my business anywhere other than my state and with the federal government?


Depending on where your business is planning to operate, you may need to register your business for various licenses in our city, county, township etc. This will require individual research in the jurisdictions your business is in. Learn more here: https://revenue.ky.gov/Business/Pages/Register-Business.aspx