Establishing a New Business   I often get asked, "What needs to be done to establish a new business?"  Here's my list of the first few steps. (1)     Determine what type of entity you should be: corporation, LLC, partnership or sole proprietor.  This decision affects your liability protection as well as your taxation.  It's important.  I recommend you discuss this with an accountant and perhaps an attorney. (2)     Establish the entity.  So, for instance, if you have decided to be an LLC, file the paperwork with the state. (3)     Get a Employer ID Number (also called and EIN) for the entity by completing Form SS-4 or applying online.  Get an EIN  (Note - you do not need an EIN if you are a sole proprietor and you will not have any employees.) (4)     If you are a corporation or an LLC and you have decided to be taxed as an S Corporation, fill out and submit Form 2553.  This is due 75 days after you establish the entity.  Filing it late might mean that you will have to be taxed as some other type of entity.   If you are an LLC and you have decided to be taxed as a corporation, fill out Form 8832. (5)     Open a bank account (6)     If you are going to have a payroll, there's a number of things that need to be done.  I recommend that you let a payroll service do your payroll because payroll tax penalties are extremely harsh.   So, just call us and we'll get you set up.