GETTING A BUSINESS OFF THE GROUND IN TENNESSEE

Things to do before you’re ready to do

business.

Helping clients build, preserve and transfer business value and personal wealth since 1958.

You’ll need a CPA firm not only to assist you with accounting and tax matters, but to advise you on general business issues as you set up your new business and plan for the future. Look for a CPA with experience in assisting entrepreneurial clients and seek help in the following areas:

Business planningEvery business should have a written business plan. While you may not want your CPA to develop the plan for you, he/she can be helpful in suggesting what you should consider in your planning process and what items should be included in your business plan. Well thought-out business plans are essential to the long-range success of your business and can be very helpful in obtaining financing.

Obtaining financingWith contacts in the banking community, your CPA should be able to introduce you to bankers who may be able to provide financing. In addition, at the bank’s request, you may need a CPA to prepare financial projections.

Selecting your business entity typeDeciding whether your business will be a proprietorship, a partnership, LLC, PLLC, C corp or S corp will have tax and legal ramifications. Ask your CPA for guidance in deciding which entity type best suits your needs and objectives.

Choosing an attorneyYou’ll need an attorney to draft articles of incorporation or a partnership agreement. If you don’t have an attorney, ask your CPA for recommendations.

Setting up your accounting systemWho better than your CPA to help you set up an accounting system that’s right for your type of business? Your CPA can recommend the appropriate hardware, accounting software and training to meet your needs and fit your budget.

Choosing an employee benefit plan Employee benefit plans are a great way to save for retirement — and represent a terrific employee incentive — however, they are tricky and complicated. You need a CPA firm who can help you set up and administer your plan, listen to your objectives, and recommend various plan options to meet your needs.

Outsourcing optionsEarly stage entrepreneurs, who must focus on core business activities like product development, marketing and customer service, can become distracted by time-consuming functions like accounting and tax. Outsourcing is the smart and cost-effective way to get top-quality professionals without putting them on the payroll. The benefits of outsourcing include:

» fewer people on your staff » less office space/equipment needed » reduced salaries and benefits » no training time required » no daily supervision required » experienced staff for a fraction of the cost

Starting a business is an exciting, yet scary, undertaking. Many entrepreneurs

have a great product or service to offer, but don’t know exactly how to get their business

off the ground. Choosing the right CPA firm to help you get started may be one of the most

important decisions you’ll make.

www.kraftcpas.com

KraftCPAs can help!

GETTING STARTED

To obtain a federal I.D. number, file Form SS-4. Send to:

Internal Revenue Service Attn: EIN OperationCincinnati, OH 45999Fax: 859-669-5760or apply online at: www.irs.gov

To elect S corporate status, file Form 2553:

Department of the TreasuryInternal Revenue ServiceCincinnati, OH 45999Fax: 855-270-4081www.irs.gov

To apply for a Tennessee account number, liquor license, a business tax license* or to obtain a sales and use tax certificate of registration, contact:

Tennessee Department of RevenueAndrew Jackson Building500 Deaderick StreetNashville, TN 37242Phone: 615-253-0600www.tn.gov/revenue

*In addition to registering with the state, taxpayers must also register with the county (and city where applicable) in which the business will be located.

To obtain worker’s compensation coverage:

If you plan to have five or more full-time or part-time employees, you must obtain worker’s compensation coverage for all covered employees. You may contact an insurance agency for more details.

© 2017 KraftCPAs PLLC

KraftCPAs has been assisting entrepreneurial clients with accounting, consulting, tax, business management and technology advice for more than 50 years. With a staff of more than 190 men and women, KraftCPAs is one of Tennessee’s largest, independent certified public accounting and consulting firms. Services for entrepreneurs include, but are not limited to:

» start-up consulting assistance » outsourced accounting and tax services » accounting software selection, implementation

and training » technology consulting, networking design/

installation/remote access » budgets, projections, feasibility studies » personal financial, tax and estate planning » business valuation » assurance services (audited or reviewed

financial statements)

To learn how we can help, contact:

Ronda Pitts, CPA Amy Thompson, CPA615-782-4242 615-346-2450Nashville Nashville

Beverly Horner, CPA Jane Hay, CPA931-388-3711 615-449-2334Columbia Lebanon

KraftCPAs can help you get your business off the ground

and plan for the future.

www.kraftcpas.com

555 Great Circle Rd.Nashville, TN 37228615-242-7351

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TAX CALENDAR GUIDE(Not all-inclusive)

January 31: Federal employment tax returns (Form 940 and Form 941, and Forms W-2 and 1099s for employees and subcontractors, respectively)

January 31: Federal employment tax returns (Form W-2 for social security administration, and 1099s for IRS)

March 1: Tangible Personal Property Tax “Schedule B” — county specific

March 15: Calendar-year income tax return (Federal Forms 1065 and 1120s)

April 1: Tennessee corporate annual report due to the Secretary of State (calendar-year taxpayers)

April 15: Tennessee business tax return

April 15: Tennessee corporation franchise and excise tax return

April 15: Individual income tax return (Federal Form 1040)

April 15: Calendar-year corporation income tax return (Federal Form 1120)

April 15 • June 15 • September 15 • January 15: Tennessee estimated tax payments (calendar year)

April 15 • June 15 • September 15 • January 15: Federal individual estimated tax payments (calendar year)

April 15 • June 15 • September 15 • December 15: Federal corporate estimated tax payments (calendar year)

Last day of month after quarter end: Payroll return (Federal Form 941)

Last day of month after quarter end: Tennessee unemployment compensation tax return

20th day after the month, quarter or year on which the sales tax is calculated: Tennessee sales and use tax return

Tax due dates are approximate and may vary from year to year depending on how weekends and holidays fall on the calendar. They may also be affected by future legislation. Dates above apply to calendar-year taxpayers. Fiscal-year taxpayers have some different due dates. Consult a CPA for guidance. The above list is not inclusive of all tax due dates.

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