Should I consider selling to the government?
- Federal, State, and Local governments purchase a tremendous amount of goods and services. For some business, this can be a good strategy. The Georgia SBDC can help small businesses assess their readiness to pursue government contracting. Another great resource is the Procurement Technical Assistance Centers at Georgia Tech. For more information, click on the resource link.
How do I get certified as a woman-owned or minority-owned business?
- Corporations or government agencies that are looking to do business with women-owned and minority-owned enterprises typically encourage the business to be certified. National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise National Council (WBENC) are major private sector certifying organizations. The SBA 8(a) Business Development Program and Woman Owned Small Business (WOSB) programs are useful for federal procurement opportunities. State and local opportunities may exist, but the certification requirements vary widely. For assistance with certification, contact your local SBDC.
Do I need a state tax ID number and how do I obtain one?
- Any small business that operates in the state of Georgia may be required for one or more tax-specific ID numbers. These may include Sales & Use tax, employee withholding tax, international fuel tax agreement, motor fuel distribution, coin-operated amusement machines, alcohol and tobacco. For additional information on business registration and contact information, click on reference. All employers are also required to have a Georgia Department of Labor number in order to pay State Unemployment Insurance on behalf of their employees. Applications are available on-line or through your local Department Of Labor office.
What is the self-employment tax? Do I have to pay it?
- Sole proprietorships and partnerships that report a profit are required to pay self-employment tax in lieu of Social Security and Medicare contributions. Self-employed persons may be required to make quarterly deposits of estimated federal and state taxes based on the profits of the business. For specific information, contact an accounting professional.
Are there local business taxes?
- All businesses operating in Georgia are required to pay property (ad valorem) taxes on real and personal property of the business. Property taxes are assessed and collected by individual counties. The Georgia Department of Revenue web site has links to local tax offices through the State Property Tax Division.
What business expenses can I deduct?
- The IRS states that in order for an expense to be deductible, it must be ordinary and necessary in conducting the business. There are many rules as to the documentation that must be provided to maintain the deductibility of an expense. For assistance in clarifying these rules, contact an accounting professional or refer to IRS Publication 535.
Do I need to collect sales tax?
- Yes. If you sell or rent tangible items to the final consumer, you must collect and remit sales and use tax. There are certain types of sales which are exempt. For more information, click on reference.
How do I find a good CPA?
- In choosing an accountant it is important that you consider an individual that possess a good working knowledge of your business as well the accounting software package that you are currently using or plan to use. Also ensure that that the prospective accountant has a large small business clientele. Check references from at least three current clients and also make sure that this individual is board certified to practice in the state of Georgia.