Frequently Asked Questions

Here are some frequently asked questions regarding business formation and employee processing. If you have any other questions we’d be happy to help. Click any of the following questions to display the answer>>

What are some common types of business entities formed?


  • Form 1040, Schedule C
  • Single member, limited liability company


  • Form 1065 General partnership or joint venture
  • Limited partnership Limited liability company (more than one member)


  • Subchapter C – Form 1120
  • Subchapter S – Form 1120S (must file Form 2553 with IRS)
Now that I've started my business, which initial documents should I file?
  1. Establish an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). The form is available online from the IRS.
  2. Apply for a business bank account using your EIN.
  3. Apply for a business credit card with your bank.
  4. Check with local and state authorities to determine whether any licenses or permits are required to conduct your business.
Do I need to collect and remit sales tax?

This is a complex area that may require research. You may contact the Texas State Comptroller’s Office or one of the professionals at Wheeler Fairman & Kelley for more information.

What do I need to consider when hiring employees?
  1. Each employee should complete Form I-9 and Form W-4.
  2. If hired in Texas, the employer should submit a Texas New Hire form.
  3. Contract workers should complete Form W-9.
  4. Register with EFTPS to transmit your federal payroll tax deposits.
Which employment tax forms might I need to file?
  • Form 941, Employers Quarterly Federal Tax Return
  • Form C-3, Texas Employers Quarterly Report (and/or other states of operation)
  • Form 940, Employers Annual Federal Unemployment Tax Return
  • Forms W-3 and W-2, Wage and Tax Statement
What are some other links with information helpful to running my business?

Should I extend my tax return?
AICPA Extensions FAQ

Internal Revenue Service

EFTPS, Paying Federal Taxes Online

Starting A Business,,id=99336,00.html

Texas State Comptroller Web Site

Texas Workforce Commission

Department of Labor

Texas New Hire Site