Here's what you need to know:
Federal Tax ID (Employer Identification Number or EIN)
Your EIN is like a Social Security number for your business. You use it to pay federal taxes, hire employees, open a bank account, and apply for licenses.- It's free to apply for an EIN, and you should do it right after registering your business.
Your EIN is like a Social Security number for your business. You use it to pay federal taxes, hire employees, open a bank account, and apply for licenses.- It's free to apply for an EIN, and you should do it right after registering your business.
Changing or Replacing Your EIN
Sometimes you might need to change or replace your EIN due to changes in your business structure or other circumstances. Check with the IRS to determine whether you need to make any changes.
Sometimes you might need to change or replace your EIN due to changes in your business structure or other circumstances. Check with the IRS to determine whether you need to make any changes.
State Tax ID
Your need for a state tax ID depends on whether your business must pay state taxes. Some states also use state tax IDs to help protect sole proprietors from identity theft.
Your need for a state tax ID depends on whether your business must pay state taxes. Some states also use state tax IDs to help protect sole proprietors from identity theft.
State Income and Employment Taxes:
States have varying income tax rates and rules. Some don't have income tax, and others tax specific income types. Research your state's requirements based on your business structure.
Employment insurance and workers’ compensation insurance also vary by state. Consider these costs when calculating startup expenses.
States have varying income tax rates and rules. Some don't have income tax, and others tax specific income types. Research your state's requirements based on your business structure.
Employment insurance and workers’ compensation insurance also vary by state. Consider these costs when calculating startup expenses.
Getting Licenses:
Certain businesses need licenses or permits to operate legally. These requirements vary by industry and location.
Check with your local city or county government to find out which licenses or permits you need.
Your business activities and location determine the licenses you require.
Certain businesses need licenses or permits to operate legally. These requirements vary by industry and location.
Check with your local city or county government to find out which licenses or permits you need.
Your business activities and location determine the licenses you require.
