The first step to setting up your own small business is registering as an LLC. LLC stands for a Limited Liability Company, which means it provides personal asset protection like a corporation, but without double taxation of a corporation.
After you're set-up as an LLC, you'll need to understand your tax obligations. Here is a list of the steps from the IRS and the State requirements for Iowa, Nebraska, and South Dakota.
Information to have at the ready:
Official business name
Address of the business
Registered agent and registered agent address
Purpose of business
Owner or shareholder SSNs
What percentage is owned or held (depending on if it is a partnership or corporation)
address of owner's home
The Federal Government
The IRS has resources for small business owners. Here is a site for all the information you need to start off on the right foot! You'll need an Employer Identification Number (EIN). As long as your business is in the US or US Territories, and the person applying has a valid Taxpayer Identification Number, you're eligible for an EIN.
See how to apply for an EIN and more information here
As far as taxation goes, you'll have many factors to consider. There's a list of taxes to keep track of including the following:
Income Tax - The form used is dependent on the organization of the business.
Self-Employment Tax - You contributions to Social Security and Medicare.
Employment Taxes - If you have employees, you must pay the Social Security and Medicare taxes, Federal income tax withholding, and federal unemployment tax
Excise Taxes - The tax you have to file if you do any of the following.
Manufacture or sell certain products.
Operate certain kinds of businesses.
Use various kinds of equipment, facilities, or products.
Receive payment for certain services.
Siouxland Secretary of State Websites
We recommend contacting an attorney to help set up an LLC. However, if you're looking to register a sole proprietorship, bookspring, inc. can file your paperwork for you for a small fee. Call us to get started! 712-203-2988.