If you plan on hiring employees, you will enter into a whole new world of
federal, state, and local requirements.
If your business doesn't already have a federal tax identification
number, you will probably have to apply for an Employer Identification Number
(EIN) with the IRS. You can apply for an EIN by phone, online, or by mail. (The
online application is not yet available for all types of businesses.) Applying
by phone or online is recommended as the IRS has a policy of providing the
To find the phone number for your state, visit
Where to Apply for an EIN on the IRS's Web site.
To apply online, go to the
If you would like to apply for an EIN by mail,
download form SS-4.
In most states, businesses above a certain size are required to carry
workers' compensation insurance in case of on-the-job accidents. Contact
your state's board of workers' compensation for information and
assistance. In obtaining workers' compensation insurance, shop around and
compare quotes from several brokers. Also, be sure the occupational codes used
to characterize your employees based on their type of work are correct.
Insurance rates vary depending on what code is chosen.
Visit the Occupational Safety & Health Administration for information about
federal safety requirements. Also check with your state government for
Visit the Department
of Labor's Employment Standards Administration Wage and Hour Division
to find out about federal minimum wage, overtime, and child labor laws.
For detailed information about employer requirements, visit the
Reference & Tools area of Intuit's Payroll Services.
It is highly recommended that you consult with a lawyer and a tax
professional about your business' individual employer requirements.