Your Business and Taxes

Once you get your business license, you will need to register with the proper tax authority as well, and it's usually the state comptroller or franchise tax board, however, again, it varies from state to state, so check your state requirements. However, registering with the tax board is something you need to do to avoid any legal woes later. Also keep in mind that the state taxes are separate from the IRS; the state taxes have to do with paying the state the tax owed to them based on the amount of sales you make, which is another topic discussed more in detail later: collecting sales tax. The IRS has great resources on starting your business and what steps you need to take here.