Depending on the type of business you are operating, you may need to comply with different federal or state regulations.
Register with the proper authorities
Federal Employee Identification Number
Every employer is required to have a Federal Employee Identification Number. To apply for the number, file federal form SS-4, which may be obtained from the office of the Commissioner of Revenue in Staunton City Hall, or can be downloaded at: www.irs.gov
Employee Income Taxes
Employers are required to withhold Social Security (FICA) taxes from the wages of employees. You are liable for the taxes whether or not they have been collected. You are also required to withhold income taxes for your employees.
The Tax also known as FUTA is assessed on the employer only. An annual return, Form 940, must be filed by January 31. You can make quarterly deposits to any authorized bank using Form 8109.
Individual, Partnership??&??Corporate Income Tax
You must also file individual (for the sole proprietor, Schedule C.) partnership and corporate income taxes with the IRS. Internal Revenue Service Publication 334, Tax Guide for Small Business, discusses all of the above taxes in more detail.
Virginia Income Taxes
The state income tax is based on the Federal Income tax return. The Commissioner of Revenue provides assistance to the City of Staunton taxpayers in filing individual State Income tax returns. Returns and instructions are available in the Commissioner of Revenue Office. State Taxes are due May 1st. For state income and sales tax information, please visit www.tax.virginia.gov
Retail Sales Tax
Every Individual, partnership, corporation, etc. engaging in business as a retail dealer in Virginia is required to register with the Department of Taxation, PO Box 6-L Richmond, VA. 23282 to obtain a Certificate of Registration. Dealers are required to collect the retail sales tax, make regular deposits, and file the appropriate reports.
Every restaurant, caterer, operator of convenience store(s) or grocery delicatessens(s), being individual, partnership, corporation, etc. engaged in the business of selling meals is required to register with the Commissioner of Revenue, collect the tax, and file the appropriate returns.
Transient Occupancy Tax
Every hotel, motel, bed & breakfast, or other lodging place that, for compensation, furnishes lodging to any transients shall levy on each and every transient, the appropriate tax. Those entities collecting such tax shall register with the Commissioner of the Revenue and file proper returns.
Business License Tax
The Commissioner of the Revenue assesses the business, professional and occupational license. Most license taxes are levied upon the gross receipts and the rate varies with the type of business you intend to engage in. To avoid penalties and interest, you are required to file an application within 30 days of when you begin to conduct business. The license is renewable each year on or before March 1.
Business Tangible Personal Property Tax
The City of Staunton levies a tax on tangible personal property employed in a trade or business (furniture, fixtures, machinery and tools). A return must be filed with the Commissioner of the Revenue that itemizes personal property and/or equipment employed in the business, giving the date of acquisition and original acquisition costs. You must file the return by May 1. Payment is due by Dec. 5.
Vehicle Personal Property Tax
Every person or business owning a motor vehicle will be assessed annually on the retail value of all vehicles garaged in Staunton. For automobile assessments, the NADA used car guide will be used in most cases.