View Full Version : geting a tax i.d # any help ????pls
04-03-2008, 01:20 PM
hi i tryed to get a tax i.d #. but the state of mi told me i did not need one in this state is that true. ? and if so i do i get one thx to all for the help
04-03-2008, 02:01 PM
Im in Rhode Island and im wondering if I need one too please help.
04-03-2008, 02:17 PM
when i turned my business into a LLC, i was told that i do need a tax i.d. number. who knows. may just be a state to state thing.
04-03-2008, 02:50 PM
Tax ID# is federal. Some banks require it in order to open a business account. It's like a SS# for businesses.
04-03-2008, 03:09 PM
Any Employees Stingray?
What type of business? Sole Proprietor, Partnership, LLC, Corp.?
04-03-2008, 03:58 PM
no employees sole prorietor no llc or corp i have a d.b.a thow
04-03-2008, 04:08 PM
Seriously, no offense, but use the internet. It's not that hard.
You might have to register with your state also- I not only have an EIN but I have an account number with the Revenue Dept. here in KY. Check your Stae's website under "Business" or something to that effect.
04-03-2008, 04:46 PM
I have had commercial jobs asked for a tax I.D. # before i just gave them my SSN. the reason is that i then have only one tax return. i can also use the deductions agianst my personal tax return. my wife is a cpa. she knows all of the ins and outs of that theving goverment. i hate taxs.
04-03-2008, 05:54 PM
It is not needed in MI as a sole prop. When you want to start hiring employees, you will need it. You can open a bank account with a copy of your DBA and your SSN.
04-04-2008, 02:12 PM
hay thx that is what i wuz told and good luck to u to
As a sole proprieter you only fill out one tax return whether you have an FEIN or not. Having an FEIN does not require you to fill out an additional tax return. Working alone as a Sole Proprieter you most likely only have to fill out a 1040, Schedule C and SE form.
Having employees is another story and brings on additional responsibilities!! The only way employees affect your personal income tax is that you are allowed to deduct the cost from your schedule c. Expenses such as training materials, incentive programs, picnics, health plans, retirement plans, social security match etc...
BTW, I applied for my FEIN right over the phone and had it by the end of the phone call. The IRS eventually sent me a paper showing the number but there was no actual certificate.
04-13-2008, 11:10 PM
thx for the info
no employees sole prorietor no llc or corp i have a d.b.a thow There is no LAW that states you need a Tax ID #. That is the GVT./IRS way of collecting more taxes. If you purchase something, it becomes your property and you have already paid the taxes on it and can resell it for any amount you wish and are not required to include sales tax. You can use you SS# instead, but then again, your SS# states that it is not to be used for identification purposes.
04-16-2008, 12:58 PM
There is no LAW that states you need a Tax ID #. That is the GVT./IRS way of collecting more taxes. If you purchase something, it becomes your property and you have already paid the taxes on it and can resell it for any amount you wish and are not required to include sales tax. You can use you SS# instead, but then again, your SS# states that it is not to be used for identification purposes.
You have to have a fein by law if you have employees. That is how you file w4's.
04-16-2008, 03:29 PM
laws vary from state to state
04-17-2008, 08:21 AM
A good source of info, is your county treasurers office .Some cities and counties have special permits ,laws .ordinances ,taxes and insurance requirements .Piss off the wrong persons and life could get difficult. C.Y.O.A .
04-17-2008, 11:42 AM
Here in IA you need a state tax ID. We now have our.
But our Lawyer said we do not need a Fed. Id yet because it is a family run business. He said if we get to a point where we will be hiring help then we will need to do all the stuff with the feds.
For now he said he will just figure what we make and split it between my husband and I as income and go from there. We will see what happens next as they say. I know we will have to figure S.S. and that stuff out so I have to ask him what % I need to set asside to pay all of that. But for now I am not to worried. Just taking it a day at a time.
Good luck. Hope you find your answer.
No offense but you don't need an attorney to figure out your money. When you operate a sole proprietorship you pay Self Employment tax to the IRS. There is a document and form you can get from the IRS website that helps you figure your estimated tax payments throughout the year. Estimated tax payments include your social security, your business match to social security, your medicare, business match to medicare and estimated federal income tax. Keep in mind that you can claim your business share of social security and medicare as an expense.
If you deal with commercial accounts you will most likely get a 1099 from them at the end of the tax year. A 1099 is sort of a proof of purchase receipt that shows how much money your customer paid to you througout the year. Your customer does this to prove expenses paid out and is sent to the IRS with their income tax return. Basically, the IRS gets little notes saying you made money in some way! If you do get one then you have no choice but to include it in your income tax return. If you do not then you will receive a letter from the all powerful IRS computer stating you owe money. Don't ignore the letter because eventually it goes to a judge, he/ she signs a paper and the money is taken from whatever bank accounts you have. If you are employed then 10% of your wages can be garnished until the balance is paid.
Don't forget to include taxes as part of your overhead!!
Keep good records!
04-17-2008, 10:46 PM
We only talked to our attorney about our plans to start the lawn care service because he is the one that does our taxes.
What we wanted to know from him is how it would work on our taxes with both of us running the service. Thus making it not a sole proprietorship but a jointly run family business, as I stated in my first post.
I know I could have gone to the IRS web page and read about all of this stuff but as long as I was at his office talking to him about our taxes I asked.
My husband and I know all about good book keeping. We live on a farm. My husband used to milk and farm both keeping very good books. He left farming full time for another job and the farm is now cash rented out. So we manage the farm, raise a few animals for our own use, work full time jobs, all raising our family and trying to start this new service. I am keeping the books with my husbands help. I have been using the IRS web site for help and more. I still will take the final product to our attorney just to make sure we have everything in the right order and on the right forms.
That way if the IRS comes calling I can go to the attorney, because he is the one that will have messed up no me. Though I will still have to pay I know he gives us a legal leg and help.
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