Employer Identification Number (EIN)
An EIN is also known as a federal tax identification number, and is used to identify a business entity. Employers with employees, business partnerships, and corporations and other types of organizations, must obtain an EIN from the IRS. The EIN is also known as an Employer Tax ID and Form SS-4.
You are required to have an EIN if you answer “yes” to any of the following six questions:
Do you have employees?
Do you operate your business as either a corporation or partnership?
Do you file any of these tax returns: employment, excise, or alcohol, tobacco and firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
Health Care Tax Credit
Health coverage legislation enacted in 2011 included a Small Business Health Care Tax Credit to help small businesses and small tax-exempt organizations provide health insurance coverage to their employees.
Small businesses and tax-exempt organizations providing health insurance coverage will qualify for a special tax credit. Included in the health care reform legislation, the Patient Protection and Affordable Care Act encourages small business employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small business employers paying at least half the cost of single coverage for their employees.
Go to www.irs.gov, search: Health Care Tax Credit.
Knowing when and what you have to file can save you a lot of headaches at tax time. To avoid paying penalties, mark your calendar with the following key dates.
If a filing or payment deadline falls on a Saturday, Sunday, or legal holiday, the deadline will be the next business day.
January 31, 2012
Furnish Forms 1098, 1099 and W-2G to recipients for certain payments during 2011. Furnish Form W-2 to employees who worked for you during 2011.
March 15, 2012
Corporations: File Form 1120 for 2011 calendar year and pay any tax due. For automatic 6-month extension, file Form 7004 and deposit estimated tax.
Electing Large Partnerships: Furnish Sch. K-1 (Form 1065-B) to each partner.
S Corporations: File Form 1120S for 2011 calendar year and pay any tax due. Furnish a copy of Sch. K-1 to each shareholder. File Form 2553 to elect S Corporation status beginning with calendar year 2012.
The Minority Business Development Agency (MBDA) Business Center in Alabama announced a strategic partnership with the International Sustainability Institute of Applied Sciences, a division of ACF Enterprises LLC, to pilot a blueprint for small business sustainable development in South Mobile County.
To ensure inclusion and capacity-building of minority business enterprises (MBEs) in the emerging green economy, staff at the Business Center, which is working collaboratively with the Mobile Area Chamber of Commerce Foundation, received comprehensive training from the International Sustainability Institute of Applied Sciences to become Certified Sustainability Consultants. The intent of the strategic partnership is to pilot a “blended” training program that leverages technology with consulting to move central Gulf companies along a continuum of continuous improvements in sustainability performance.
According to Pamela Ramos, the Business Center’s Program Director, “Training and consulting will play an important role in transitioning south Mobile County businesses to sustainable operations in 2012. This is a way to add value and competitive advantage to a minority business enterprise classification.”
If you’re starting a business that requires significant financial investment up front, finding a source of funding can be a challenge, especially since the average cost of starting a business is $30,000. This is particularly true for young entrepreneurs who lack a strong credit history or don’t want the hassle of dealing with banks or private lenders.
Once these startup entrepreneurs are done considering their options, it’s not unusual for them to ask friends or family for startup cash. After all, unlike private investors or banks, these people know and trust you. It’s possible they can get you quicker access to cash with fewer flaming hoops to jump through. On the flipside, if your business fails or you are tardy in repaying the money, you may be headed for some conflict with the aforementioned family and friends.