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Taxes for start-up

TAXES AND REGULATORY REQUIREMENTS

REQUIRED OF ALL BUSINESSES:

  1. Federal Estimated Taxes, Quarterly
  2. Federal Income Tax Returns
  3. State and/or Local Income Taxes
  4. Application for Federal ID # (Form SS-4)
  5. Form 1099 Information Returns
  6. Registration as employer with the State
  7. Local Business License
  8. Fictitious Business Name/Trade Name Registration (if using a fictitious name for the business) Trader’s License (to offer goods for sale)

REQUIRED WHEN FIRST EMPLOYEE IS ADDED:

  1. Application for Employer Identification Number (EIN) (Form SS-4)
  2. Payroll Tax Returns (Federal)
  3. File and provide W-2s to Employees Complete INS Form I-9 for each new hire
  4. Federal and State Child Labor Laws Federal Wage and Hour Regulations/Laws
  5. Workers’ Compensation Insurance Required Post Notices for Employees’ Information Register if you employ 5 or more people.
  6. *Note: consult with an accountant and/or attorney to make sure you’re in compliance with any and all regulations that apply to your business.

 

PERSONAL PROPERTY TAX INFORMATION

In Maryland, businesses must pay an annual tax based on the value of their personal property (furniture, fixtures, tools, machinery, equipment, etc.). The Department of Assessments and Taxation (DAT) administers the valuation process while the counties and towns collect the tax based on the location of the property.

The DAT automatically registers corporations, limited liability companies, and limited partnerships for this tax when these legal entities form. All other businesses (sole proprietorships, general partnerships) that own or lease personal property or need a business license are required to:

  1. Obtain an identification number by registering with the Department of Assessments and Taxation
  2. File an annual personal property return. For information regarding personal property assessments, contact:

State Department of Assessments and Taxation

 

Phone—Sole proprietors, general partnerships: 410-767-4991
Phone—Corporations, limited partnerships, limited liability companies: 410-767-1170 www.dat.state.md.us

OBTAIN FEDERAL, STATE, COUNTY, AND LOCAL TAX INFORMATION

All businesses must fulfill their tax obligations to the federal government and the State of Maryland. To help determine the taxes for which your business will be liable, complete Maryland’s Combined Registration Application. A copy of the form is included on the next page so you can familiarize yourself with the information needed to fill out the form. The form is the current form as of the date of this publication; however, forms change from time to time. The most current form can be reviewed, filled out, and submitted on-line at www.comp.state.md.us.

For questions or assistance, contact:
Taxpayer Registration Assistance Center             

301 W. Preston Street, Rm. 206                              112 Baltimore Street, 2nd Floor

Baltimore, MD 21201                                   OR         Cumberland, MD 21502

Phone: 410-767-1300                                                 Phone: 301-777-2165

www.comp.state.md.us

New business should contact the Internal Revenue Service (IRS) to register for:

  1. an employer identification number (EIN)
  2. income tax—business and employee withholding social security
  3. federal unemployment insuranceother federal taxes

The IRS provides business kits for three types of businesses: sole proprietorships, partnerships, and corporations. For additional information, contact:

Internal Revenue Service                                    Internal Revenue Service

31 Hopkins Plaza                                    OR           Braddock Square Mall

Baltimore, MD 21201                                              Winchester & Vocke Roads

Phone: 800-829-1040 or 410-962-2590               LaVale, MD 21502

www.irs.gov                                                        Phone: 301-729-6377