Tax Id Number Information

 

 

 

 

HERE IS WHAT LEGAL DOCUMENTS YOU ARE REQUIRED TO HAVE TO START YOUR BUSINESS      Fees

Business Legal Structure

 Business License / Trade Business Name Filing Federal Tax Id  EIN State Tax Id EIN Wholesale License Business License Corporation / Limited Liability Company Filing
Sole Owner or Partnership with  employees & selling taxable items x  1* x x x x  
Sole Owner / Partnership/ Selling Taxable Items - no employees x 1*      x x  
Sole Owner / Partnership/ with employees - not selling taxable items x  1* x x   x  
Sole Owner / Partnership/ no employees and not selling taxable items x  1*       x  

1. * (Required if you do business in a name other than your own personal name)  -  Bold "X" = All Business Need It

 
 

Corporation / Limited Liability Company  with  employees & selling taxable items

  

x  1*

  

x

  

x

  

x

  

x

  

x
 Corporation / Limited Liability Company with employees - not selling taxable items x  1* x x   x x
Corporation / Limited Liability Company Selling taxable items - no employees x  1* x   x x x
Corporation / Limited Liability Company  no employees and not selling taxable items x  1* x     x x
 

 

1. *(Required if you do business in a name other than your own personal name - for example if you do business as your name (John Smith) you don't need a fictitious business.  However, if you business  name is "John's Consulting" you need a Business License / trade / Business License   filed.  (Required if the corporations do business in a name other than the corporation's name... more...click here )
*You need a Corporation or A Business License if you do business in a name other than your own personal name
*(you need it if you don't want to use your soc. sec. # to open a bank account - note: you are required to have it if you are a corporation)  Note that all businesses need a business license and are advised to obtain a federal tax id to open a bank account.

 

In general, corporations need a federal tax id and a business license;

Employers need a federal tax id, a state tax id and a business license;

Wholesalers or retailers of  tangible taxable items need a Wholesale License / Reseller License and a business license;

Individuals, partnerships, and corporations need a trade name filed if the business name used is different from personal or legal name.

Note that all businesses need a business license and are advised to obtain a federal tax id to open a bank account.

 

Example 1: you are an individual that sells toys, and you business name is not your personal first and last name - you need a Wholesale License , a business license and a trade / Business License filed.

Example 2. You are a partnership that provides consulting services,  and has employees.  You are required to have a federal tax id EIN, a state tax id EIN, a business license, and a Business License.

Example 3. You are a corporation selling widgets on eBay, but have no employees - you need a federal tax id, a business license, and a Wholesale License .  Note that if your corporate name is different from your online business name, you also need a trade / Business License filed ( example you are "Xyz, inc"  doing business as "Widgets Online Are Us").

"x" means that you need to file this legal document

Do I need a Corporation or a Business License ?

What is The Process of Buying and Receiving these Documents?  

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