The first step in understanding how to operate a business is to understand the rules under which all businesses must operate. There are a number of responsibilities that you undertake as the operator of a small business, and the following items are meant to identify some of these issues:
Obtaining a Federal Employer Identification Number (Form SS-4)
Businesses are required to obtain an Employer Identification Number (or EIN) from the Internal Revenue Service (IRS). This number is used to track reporting of the business entity. You can call the IRS and obtain the number over the phone after filling out the form (Form SS-4) as long as you agree to mail the form to the IRS within 24 hours of speaking to them. For more information, you can also visit the IRS website.
Requirement to Collect & Remit Sales Tax for the State of Ohio
Certain types of businesses are required by law to collect and remit sales taxes in the State of Ohio. The collection of sales taxes requires that you purchase a vendor's license from the County Auditor's Office. For more information concerning the need for a vendor's license or charging sales taxes, please contact the Warren County Auditor's Office at 513-695-1240.
Filing Payroll Taxes & W-2s
If you will be hiring employees, it is imperative that you withhold City of Springboro income tax from paychecks. The City of Springboro has a 1.5% income tax for all persons working within the City. The reporting of payroll usually requires quarterly and/or semi-annual returns as well as the issuance of W-2s at year-end. For more information concerning the City's income tax, please call the Tax Department at 937-748-4343.