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When you start a business there
are a multitude of laws and taxes that you must become knowledgeable
about. When you hire employees the laws and taxes become
exponentially greater.
The types of taxes that a
business owner will have to become familiar with are:
- Washington Department of Revenue Excise Tax Return for sales
tax, use tax, excise tax, and various specialty taxes.
- City Excise Tax Return for excise taxes.
- Personal Property Tax Return for the county in which you live.
- Schedule C - Form 1040 for a sole proprietor or a single owner
LLC that elects to be taxed as a sole proprietor for income tax
purposes.
- Form 1040ES for payment of a sole proprietors, partners, or
"S" corporation shareholders estimated income taxes.
- Form 1065 for a partnership or a multi-member LLC that elects
to be taxed as a partnership for income tax purposes.
- Form 1120S for a corporation or a multi-member LLC that elects
to be taxed as an "S" corporation for income tax
purposes.
- Form 1120 for a corporation or a multi-member LLC that elects
to be taxed as an "C" corporation for income tax
purposes.
- IRS Federal Deposit Coupon for payment of a "C"
corporation's estimated income taxes.
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If you hire EMPLOYEES
in any type of business OR are
an employee yourself in a "C" or "S" corporation OR
you are a sole proprietorship and you hire your spouse or your children,
then the payroll tax forms you need to become familiar with are:
- IRS Federal Deposit Coupon for payment of payroll withholding
taxes and federal unemployment taxes.
- Form 941 for reporting federal withholding taxes such as
income taxes, Fica taxes, and Medicare taxes withheld from
employees wages.
- Form 940 for reporting federal unemployment taxes.
- Form W-2 for reporting employees' wages and withholdings.
- Form W-3 as a summary sheet for W-2s.
- Form 1099MISC for reporting payments to non-incorporated
contractors.
- Form 1096 as a cover, summary sheet for 1099s.
- Washington Department of Labor and Industries
quarterly report
for payment of workers compensation insurance on employees.
- Washington Department of Employment Security
quarterly report
for payment of State unemployment tax on employees.
- Schedule H (Household Employers) for Form 1040 for payment of
federal withholding taxes on household employees such as
nannies, day care workers in your home, and other permanent
employees.
- If you hire your children or other persons under the age
of 18, then you are required to obtain a State of
Washington
Minor Work Permit.
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