Business Tax Forms and Documents You Need To Start and Run a Business

Did you know that entrepreneurs form over 600,000 new businesses each year in the United States? Although starting a company is easier than most people think, this doesn’t mean that it is always simple.

There are certain business tax forms that you will need in order to do so successfully.

Looking to start a business of your own? Let’s go over the essential business documents.

A Business Plan

As you might guess, this is one of the most important documents that you will need when starting a company. This document will outline your business goals, strategies, and how you plan on achieving them.

A business plan is not only helpful for potential investors, but it can also be a guide for you as the owner of the company. In some cases, entrepreneurs spend months or even years developing a comprehensive business plan to help keep them on track.

Although it’s possible to succeed without a detailed business plan, it is not recommended to attempt to do so. More often than not, this will only cause your business to fail and ruin your relationship with your investors.

A Partnership Agreement

If you are starting a business with another individual, you will need to create a partnership agreement. This document will outline the responsibilities and rights of each partner, as well as how profits and losses will be divided.

It is important to have this agreement in place before any conflicts arise. Otherwise, you may find yourself dealing with legal issues while you attempt to sort out the details. For example, your former business partner may claim that they came up with some of the core ideas and intellectual property.

If you can’t prove that they didn’t, the case may be resolved in their favor.

A Certificate of Incorporation

This document is filed with the state in which your business is located and is used to create a corporation. It will list the name of your company, the purpose of the corporation, and the stockholders involved.

This document is important for protecting your company’s assets and shareholders. If you do not have this protection in place, you won’t be able to scale your business as easily as you intended to in the future. You will also be unable to operate as efficiently.

A Tax Identification Number

This number is issued by the IRS and is used to track your company’s tax information. It is important to apply for this number as soon as your company is established so that your business can be officially recognized.

Tax issues are something that you want to avoid at all costs, so do not put off this obligation. It’s also worth noting that tax problems from prior years could arise, placing you in a stressful financial situation.

A Vendor License

Depending on the state in which you reside, you may need to obtain a vendor license in order to sell products or services. This document will outline your business name, address, and what type of products or services you plan on selling.

Selling goods without the proper credentials is illegal and could land you in trouble with law enforcement. You could also lose the opportunity to conduct business in the future within your industry.


This is a certification that is issued by the Secretary of State and is used to verify the authenticity of documents. If you plan on doing business in another country, you may need to have your documents certified in this matter. Otherwise, you will not be able to operate within your country of choice.

If you do not plan on expanding internationally, you can overlook this obligation.

Relevant Permits and Licenses

Depending on the type of business you are starting, you may need to obtain certain permits and licenses. For example, if you are starting a restaurant you will need a food license. Make sure to research the permits and licenses that are required in your state and municipality. Failure to do so could result in fines, penalties, and similar consequences.

What Tax Forms Do I Need?

Different businesses will have different tax forms that they will need to file. For example, a corporation will have to file a corporate income tax return, while a sole proprietorship will file a Schedule C. Make sure to consult with an accountant or the IRS to find out which forms are applicable to your business.

Other tax forms include:

  • Form 1120: This is the corporate income tax return and is filed by corporations.
  • Form 1065: This is the partnership return and is filed by partnerships.
  • Form 990: This is the Return of Organization Exempt from Income Tax and is filed by nonprofit organizations.

There are many different business tax forms that you may need to file, so make sure to consult with a tax professional to find out which forms are applicable to your business. By taking the time to understand and complete these essential documents, you will be well on your way to starting a successful company.

You Can’t Overlook the Importance of These Documents

These are just a few of the documents and business tax forms that you will need when starting a business. Make sure to do your research to ensure that you have all the necessary paperwork in place.

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