Your required business tax issues can be complicated and overwhelming. The first thing you must do is consult your tax professional for all tax questions. This article is not intended to be a complete list of required forms. It is an overview of the most frequently required tax forms and issues you may need. First, you must obtain a federal tax ID online at the IRS website, www.irs.gov.

If you have employees, there are certain tax forms that you must file: Form I-9 verifies that each employee is legally eligible to work in the U.S.; Form W-4 is completed by each employee to indicate their withholding tax; Form W-2: is the Wage and Tax Statement you prepare every year for each employee and give copies to employees and file a report with I.R.S; and Form 1099 must be prepared for payments of $600 or more paid to non-employees in one year such as independent contractors. You give copies to the payee and mail a copy to IRS.

There are other tax forms that you may be required to file if you give your employees bonuses or make certain kinds of sales. Form 1099-MISC is required for prizes or awards of $600 or more or for sales of consumer goods for $5,000 or more to a person who intends to sell the goods retail, but does not conduct the sales in a permanent retail establishment. In addition, you are required to file Form 8300 for cash payments you receive in one transaction that are more than $10,000.

The I.R.S. website, www.irs.gov, has many inexpensive small business products that you can order on line. The publications are: Tax Calendar for Small Businesses and Self-Employed, A Virtual Small business Tax Workshop DVD, Small Business Resource Guide CD, Recognizing Illegal Tax Avoidance Schemes Brochure, and Home-Based Business Tax Avoidance Schemes Brochure. There are numerous small business and self-employed resources offered on the I.R.S. website. There are even small business classes and workshops.

As a business entity, you will have to pay income tax and file a Form 1040 or self-employment tax and file Schedule SE (Form 1040). On behalf of your employees, you will have to withhold from salary and pay to IRS and the state federal and state withholding tax. You will be required to withhold from salary and match the amount from the business