Starting a Business in Falls Church VA

If you are looking for information on living in Falls Church and starting a business, you have come to the right place. In this article, you will find all about the license requirements, taxes and other requirements you have to meet in order to open a company in this little, but prosperous town in Northern Virginia.

License Requirements

If you are thinking about starting a new commercial or professional enterprise, you first must get a specific license that can be obtained from the Commissioner of the Revenue’s Office. Before applying for a license, all new business owners must get a Certificate of Occupancy. You can receive this document at the Department of Development Services. If you want to buy an existing company, you will also need a license. A business license must be renewed every year before March first.

Federal Requirements and Taxes

As an employer, you must have your own federal employer identification number. This number can be obtained by filing a Federal Form SS-4 and submitting it to the Internal Revenue Service (IRS). If you have any doubts about getting your federal employer number, you should contact them for more information or visit their official website. If you plan to apply for incorporation or limited liability, your business must fulfil specific requirement established by the State Corporation Commission. All forms can be downloaded from the official website of the IRS.

When it comes to federal taxes, depending on the type of business you are planning to open, the IRS will ask you to fulfill different requirements. It would be best to contact the IRS and request a business tax kit. When it comes to employee taxes, the Federal Insurance Contributions Act (FICA) established that every employer has to withhold Social Security taxes from employee wages. No matter whether your taxes have been collected, as an employer, you are liable for them. At the request of an employee, income taxes also must be withheld and files quarterly on Federal Form 941. After this form is submitted, it can be deposited in any authorized bank.

Unemployment tax is established by the Federal Unemployment Tax Act (FUTA) and it paid by the employer only. You will get an annual tax return, and after completing Form 940, you can mail it with the payment and the annual tax return. Besides mentioned, sole proprietors’ income taxes have to be filed with the IRS every year. The same applies to partnership and corporate income taxes.

Have in mind, that if you have more than three regular employees, you will have to cover full worker’s compensation insurance at no cost to your employees. The employer can apply to be self-insured, or he can purchase the necessary insurance through a private insurance company.

Trade Name Registration

Unfortunately, in Falls Church, you trade names cannot be registered independently. However, the city has an agreement with Arlington County, and you can register your Falls Church business there. When choosing a trade name, it would be best to consult a lawyer to assist you and file the necessary papers on your behalf.