Register with State Revenue
When you start a business, one of the first things you need to do is register with state revenue offices. The reason for this? Your state’s business licenses, permits & tax division can help you determine what types of business licenses you need when you form a corporation or LLC, as well as get you registered to pay your corporation state tax.
It’s important that you have all your business licenses and permits on file with your state and city so that you are always compliant with regulations. You may not even know what forms you need to fill out, so getting registered with your state revenue office can help you figure it out.
Not every type of business needs to register with the state, but find out who your state requires registration for. As an example, you need to register with state revenue in Indiana if you:
When you register, you will receive a business license, as well as your tax registration number and information on filing frequency. You will also be given information on specific business licenses you need, such as sales tax registration, home occupancy, or health licenses.
When you buy a business, you inherit the tax liability and other debts the company has, though you may not be able to use the existing business licenses. Find out if you can transfer the former owner’s business licenses, or if you need to apply for new ones, and see if there are any outstanding debts or taxes owed through the state revenue office. Ideally, you should find this out before you take over as owner so that you can negotiate the price you pay for the business to accommodate paying back taxes.