If you’re planning for business expansion into another state or country, the nature of your business will dictate reporting requirements, regulations, and best practices. Customizing your accounting processes is a vital part of the planning process.
Proper planning before you engage in the actual expansion into a new location can help to ensure the success of your growth, secure your compliance, and keep you from costly penalties. Seek out a qualified tax advisor to walk you through each point in the planning process. They will help you to take a step-by-step approach through six key gates that may be required for expansion.
- Register with Secretary of State to do business in the State (as a domestic or foreign entity)
- Register for State sales tax if applicable, and Local if it requires a separate registration
- Register for State withholding if the State has an individual income tax
- Engage a payroll service or prepare to do payroll internally for your new location
- Consider the need to make quarterly estimated tax payments to the State
- Register for any local occupancy taxes with the City or County, if applicable
Registering and starting your business in the new location is the first step in the path to sustainable business success. Considering and managing the numerous complex details involved in the expansion is crucial to achieving tax compliance. Often, this is the point at which fast-growing middle market companies outpace the capabilities of a small business bookkeeper.
Once you begin this process, it becomes more important than ever to secure an experienced advisor who is focused on your unique goals, resources, and internal training needs. They will make sure accounting software and processes are customized to your specific requirements and that your team is proficient with the new processes and technologies. Only then are you truly equipped to record and use the information to respond to the various and multiple requirements that arise with expansion.
S.J. Gorowitz Accounting & Tax Services specializes in meeting the needs of expanding businesses. With the experience of a large firm, and the personal values and approach of a boutique consultancy, we help growing businesses establish the appropriate accounting processes in advance of an expansion. Our goal is to help you grow without a risk of penalty and with peace of mind about your exciting next step.
Contact us for help a customized approach to your location-based expansion.
In the next installment, we’ll look at expansion and focus on accounting system customization considerations. Subscribe to receive this actionable information directly in your inbox.