tax id

Discussion in 'Starting a Lawn Care Business' started by philo, Jul 31, 2004.

  1. philo

    philo LawnSite Member
    Messages: 1

    Hi everyone. I'm planning on starting a new business in about 2 years but until then I just want to build resources, make contacts and stuff like that. So I'm looking on advice about whether or not I should get a tax id now for credibility or wait until I'm actually ready to open to the public.
    I'd appreciate any opinions.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    There's no reason to get one now. Generally if you are working by yourself, you can use your SSN. If you log onto the IRS website, they have a list of criteria to determine whether or not you can use your SSN.

    I've never had anybody ask me what mine is.
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

    I agree with Hoolie.

    What you could consider is registering your business name now.
  4. Tider6972

    Tider6972 LawnSite Senior Member
    from Alabama
    Messages: 649

    Tax numbers are for sales tax purposes. If you are responsible for collecting sales taxes, you will need a sales tax number. They are issued by your state department of revenue. In some cases, you may also be responsible for county, city or other local taxes. Usually, the state tax number is also used for these repotings.

    A Federal Employer Identification Number, FEIN, sometimes called EIN, is necessary if you have employees on a payroll. If you incorporate, or form a limited liability company (LLC), you may wish to get a EIN in order to assist in establishing the company or corporation as a sepatate entity, useful for credit purposes.

    If you don't have to collect sales taxes in your state or locality, you don't need a tax number. In some states, Alabama and Florida for example, if you pay the sales tax at the wholesale level (when you buy an item) you do not have to charge your customer tax. CHECK YOUR STATE and local laws.

    In some state, you do not have to charge taxes on labor, in some states you MUST charge tax on labor.

    If you are going to be a one man operation, a sole proprietor, you have NO NEED for an FEIN. But, you may elect to get one to establish your business a separate credit file.

    Laws vary by state and local. Check with your state, county, and city departments of revenue.

    DIRTRACING20 LawnSite Member
    Messages: 17

    guys I'm new to this and need a little help. Where do u go to get your business license? My other problem is I found out that I need a licenes to spray roundup where what do I do? I know it my be odd quistions but I want to have MY BUSINESS ON THE UP&UP thanks for any help guys
  6. yrdandgardenhandyman

    yrdandgardenhandyman LawnSite Senior Member
    from midwest
    Messages: 953

    Maybe you should talk to an accountant or even a lawyer.
    Yes, it's best to do it right.
  7. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Messages: 1,405

    Wait until you are ready to do business!
  8. ichinaga

    ichinaga LawnSite Member
    from NJ
    Messages: 3


    I registered my business at the county clerks office and got business licenses from each of the towns I work in.

    As for the Round UP - Unless you want some fines, I'd definately stay away from spraying anything without a license.
  9. kbenvironmental

    kbenvironmental LawnSite Member
    Messages: 80

    you can get all you need at your state's dept of revenue (not IRS) The people there will answer all your questions on what forms to fill out and where to get bonded (any bank will do this)

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