Accounting News and Notes

Gwinnett CPA Teaches Resources for Atlanta Entrepreneurs

 New Georgia Business Set Up All Phases of  Their New Tax and Legal/Incorporation Responsibilities

Working with  the many nuances of the incorporation process if not for the meek of heart or for the unprepared. It is always prudent to first talk with a CPA in a face-to-face meeting to ensure that you pick the legal operating entity that is best for you business, its operating goals and to keep your tax bill as low as legally possible. After your business is set up correctly much of the initial paperwork is done, however there is much left for the business owner to do. For example, we recently received this letter from one of our new clients.

Hi John: 

Rainy days and Mondays! J Good song…but I’m not down!   

I met with the banker you referred last week. Thank you so much for the referral. I am also going to work with the attorney you suggested. She’s really nice and I like her positive attitude!! 

My new banker asked me for a few things and I wanted to make sure I could provide him with this later today: 

• ·         Articles of Incorporation (is that something that is in a format that I could email him?)
• ·         TAX ID
• ·         Trade Name Authorization (I am going to use a new name as the company’s DBA to the name I originally incorporated) How do I do that?? 

ASAP after the client became incorporated we assisted and guided the client in:

-Introducing them to a bank that specializes in assisting small business owners and a banker with the responsibility, authority and customer service mind to assist both short and long term.

-Advising of the requirements of the new business to have a business license.

-Confirming the entrepreneur’s responsibility to pay the annual registration to the GA Secretary of State’s office.

-Referring Insurance Representatives/Agents who are familiar with the needs of small business owners and an agent who specializes in medical, life, disability and dental coverage.

-Referring to a small business attorney to assist with the legal registering of a DBA or Georgia or national trademark registration. To visit the GA Secretary of State Web-site visit www.sos.georgia.gov/corporations/

Contact HIS CPA PC (A Christian CPA Firm) today.

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/ article2.html There you will also discover a wide host of resources for Atlanta Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!    

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

 Get Your Georgia Business Started/State Payroll Tax Issues/Sales Tax/Business Licenses

One of your first steps as you being your Georgia business, is that you  will apply for  a Georgia State Taxpayer ID Number to pay your Georgia Income Tax and Net Worth Tax obligations. This will be true for a C Corporation , S Corporation, LLC, LLP, Partnership or Proprietorship. If you are an S or an S Corporation or an LLC that converts to an S Corporation for tax purposes you will need to have a Georgia withholding number and also register with the Georgia Department of Labor, even if you have no other employees, other than yourself as tax law requires these entities to pay a fair and reasonable salary given position and profit. If you do this online, you may also get a provisional Federal ID number at the same time. Get started at the Georgia Tax Registration Gateway.

Georgia Withholding.

To report your Georgia withholdings, Georgia will assign you to a reporting cycle; be sure to carefully review the reports they send, as the due dates will be detailed on the forms.  Federal and state withholding (depending upon and varying by state) Employers are required to submit to their employees a withholding form/certificate, on which the employee documents and confirms their filing status and their number of exemptions.  Employers then are required to use this information to determine the statutorily withholding based upon withholding tables required by the IRS and varying states.  The withholding certificate for the IRS and Georgia are a W-4 and G-4 form respectively.  It is the employees responsibility to complete these forms and then for the employer to withhold these amounts as directed.  All withholding taxes are taken out of an employee’s check and then remitted over to the respective taking authority.  In this capacity, an employer is required to act in a fiduciary capacity in the withholding and payment of these monies

Obtain a Georgia Sales and Use Tax ID Number

If you will be selling goods at retail, or have a rental business you will need to collect Georgia state sales tax, and any local sales taxes, that might be due. These vary by county and your county rate can be determined by visiting the Georgia Department of Revenue web-site at

The Georgia Department of Revenue will issue this tax ID, and provide information about the sales and use taxes you should be collecting. Learn more at the Sales  Use Tax website.

Georgia Department of Labor/Unemployment Insurance

 This is a DOL/quarterly report due thirty days after the close of the quarter. Employers are required to pay for SUTA/state unemployment taxes using this form. Please note that initially when your business starts the tax rate is statutory. It will adjust over time based upon your claims experience. Please be sure to look for this notice of your annual rate, which Georgia sends at the first of each year.  Both the IRS and the state of Georgia assess against employers an unemployment tax.  This tax is paid exclusively by the company, and there are no required withholding or additional taxes being paid by the employee.  Both the IRS and Georgia limit the amount of taxes a company will pay on any given employee to a maximum salary amount per year.  These monies/taxes are due on the first wages paid a particular employee in any given calendar year.  While the IRS assessment rate/percentage is statutory the rate to Georgia fluctuates based upon an individual companies claims experience.

Business Licenses for your Georgia Business: How to Obtain a City or County Business License

Sometimes called an Occupation Tax, a business license should be obtained from the county or city in which your office is located. If you primarily work out of your home, then obtain the license in your home county. You can find out the proper procedure for doing this by calling your city hall or county courthouse. For example, in Gwinnett County, you obtain your business license in person at the Licensing and Revenue Department at the County Annex building on South Perry Street in Lawrenceville.

If you are located in the city limits of a town you should obtain your business license from the municipality in which your business operates. For those in Atlanta you can get your license by contacting the City of Atlanta Business Tax Division, 55 Trinity Avenue, SW, Suite 1350, Atlanta, GA 30335-0317 or by calling them direct at 404-330-6270. For those living in Lawrenceville please visit the licensing office at their office at 70 S. Clayton Street, Lawrenceville, GA 30045 or by phone at 770-963-2414. If you live within the city limits of Duluth please contact City Hall at 3578 West Lawrenceville Street, Duluth, GA 30096 with their phone being 770-476-3434.

Please note that many cities and municipalities allow for the registration forms to be down loaded on-line. Generally licenses have a basic underlying fee which then fluctuates based upon your projected sales levels.

To read more about business issues affecting your new Georgia Business visit http://www.hiscpa.com/checklist.htm

To Get Help in Choosing the Right Entity Type for your Business visit http://www.hiscpa.com/article2.html

Understanding Corporate Income Tax Returns and Year-end Tax Filings for Business Owners          http://www.hiscpa.com/business-tax-returns.html

To learn if your workers are employees or independent contractors http://www.hiscpa.com/employee-checklist.htm

Atlanta Payroll Services. Payroll tax returns and their attendant issues are the bane of many business owners both big and small.  Tax law at federal, state and local levels often leaves an entrepreneur feeling both dazed and confused.  There is no greater area of need for tax simplification than in the area of payroll tax issues.  Payroll tax returns and payments are due to the varying regulatory agencies at differing times, unique and special forms and often what appears to be conflicting reporting styles and forms.  Unfortunately, this is just the tip of the confusion to which you will help find clarification below.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/