Getting Tax Id versus Not getting one

Discussion in 'Business Operations' started by Firstclasslawn, Mar 28, 2004.

?

Does a New Lawn and Landscaper REALLY need a Tax ID #

  1. Yes

    15 vote(s)
    55.6%
  2. No

    12 vote(s)
    44.4%
  1. Pecker

    Pecker LawnSite Bronze Member
    Posts: 1,454

    Thanks Amar.
    Albemarle, Thanks also for the advise. I have been doing LCO on and off for nine years now. Two regular commercial accounts for many years as well as a couple residentials until I left for college. I did pay taxes, and a LOT of them. Then when i moved back home, I did one residential yard for a few years. That's what I mean by part time. However, I've spent money earned from passed years wisely and have built up some nice equipment. Even got insurance now and as it grows, I'd like to play by the rules. I'm now at the point of finding out exactly how to create a legit business but am not much of a businessman yet, but learning all the time. I will see my accountant in a few weeks, so I'll consult with him too. Just want to be somewhat educated so I know what questions to ask. Thanks again.
     
  2. DKinWA

    DKinWA LawnSite Member
    Posts: 76

    My accountant recommended getting an EIN even though I'm a sole prop. This way, when I need to give out my federal ID number (default is SS#) for business purposes, it cuts down on my SS# falling into the wrong hands. Identity theft is running rampant and it makes good sense to protect yourself.
     
  3. missytheaccountant

    missytheaccountant LawnSite Member
    from Bama
    Posts: 45

    If you are a sole proprietor, you can file your business income/expenses on Schedule C without obtaining a seperate EIN. Should you ever incorporate, become an LLC, a parntership, or change your business to any other entity, at that time you need to fill out an SS4 for an EIN for that entity.
     
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Firstclasslawn,

    Is your business a dba, LLC, partnership?
     
  5. Firstclasslawn

    Firstclasslawn LawnSite Senior Member
    Posts: 341

    I am a DBA so yes I am doing business as First Class Lawn and Landscape
     
  6. mtnlawn

    mtnlawn LawnSite Member
    Posts: 20

    If you make less than $400 a year you don't have to mess with any of this- of course, if you've been doing this for 8 years and haven't made more than $400 you're in the wrong biz...lol- I agree that an ID # is better than using your ss- it's easy to get and may cut down on identity fraud- you need an EIN only if you have employees, though- if it's just you you don't need this #
     

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