Getting a Tax ID# is the most simple thing to get when it comes to business but since most folks don’t know what it is they usually pay someone to do it. A Tax ID# is like your business Social Security #. This number proves to the banks, credit card companies and to the state that you exist. When they slap the baby’s ass to check if it’s alive a Tax ID is the slap on your ass to let everyone know you are legit. The IRS allows you to get the Tax ID (EIN) for free on their website, they also let you print out a SS4 and mail it into them and they allow the SS4 to be faxed. Believe me the IRS wants you to tell them that you have a business so they know who they have to tax!
Why do I need a Tax ID aka EIN aka Business Social Security#
- You need it to open up a bank account.
- You need it to apply for business licenses
- You need it to file a tax return by mail.
How to Apply for a Tax ID aka EIN aka Business Social Security#
- Go to IRS EIN online site –> Click Link HERE
- Scroll to the bottom to Apply Online! (It will only be open during Federal Business Hours)
- If not you can print out the form SS4 –> HERE
- Don’t forget to read the instructions attached if you feel uncomfortable with anything as it’s pretty straight forward.
- It will take the IRS about 2 weeks to send you the Tax ID on their letterhead. If you do it online they will give you a chance to print it out online.
Remember if you are starting a Sole Proprietorship the way you fill this out will be like this.
- Daniel FreeMan will be the legal name
- Rise and Grind will be the trade name (trade name – the name people will see outside like FreeMan Flowers)
(A Corporation, LLC, LLP will use the company name as the LEGAL NAME..)
AND that’s that! See it was so simple you will be mad if you paid someone to do it….
OK THEN WHAT’S A STATE ID FOR?
- Determine if you need a State ID by just calling your Secretary of State office
- You will NOT need a State ID to start your business Bank account.
- State ID’s are usually needed to get certain state licenses
- State ID’s are usually needed if you plan to serve the public in that state in any way
- They are basically setup so you can collect state taxes on their behalf so they know how to tax you.
Check your state by typing your state and ID in google and then find out if you need it at all for the type of business you’ are running. If you plan to sell anything to the public most likely you will need a state ID.
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excellent, excellent, excellent! talk about explaining it in simple terms. thanks!
Do you still think someone should try out their business or product prior to setting up a Tax ID or registering with the government?
If I set up a company to sell a specific product, is the name protected by any laws if someone tries to copyright it?
The tax ID will not hurt you to get set up as it’s easy to do and if you don’t sell anything you don’t owe anything so I’ll get it done early.
Nope the name is not protected but if you can get the domain name for the product and start small you can later trademark it for about 300 bucks. So don’t worry about trademarking it first make money in your area and then break out and take care of the rest.
Like I said a Sole Prop is a mom and pop once you turn a corner on money you might want to change to a LLC or a S-Corp, which I’ll explain later.
Let me say THANKS! That’s for all the people sitting around thinking stuff like this is hard. You’re doing a great job man! This is exactly the kind of get it done today real world sh*t that I look at this site for! Damn good job man.
On a different angle: for all of you that have wrecked your credit, you should understand that you can use a Tax ID (EIN) instead of your social security number to get what you want. So you should have had one of these on hand like yesterday. Yeah, FreeMan is a little to much of an honest and upstanding citizen to tell you about that…but I ain’t.
Thanks for the compliment. This whole month I’m just trying to break down all these things to show you it’s as simple to get as filling out a application. Don’t get it twisted people imagine this stuff to imply the Feds are coming after you and all kinds of audits but it’s really just telling the Feds I am here! If you don’t make any money there isn’t anything to really report so why sweat the small stuff.
Yep you’re right I’m not telling that at all. Whenever you start down a road to deceive you reap what you sow. It’s better to just work on paying everyone back and never borrowing from the legal loan sharks again.
Ayo Freeman, that’s some invaluable info you got there my brutha. We, your readership, appreciate that!! You’re like becoming the “Swami of Mad Hustle Strategy/Tactics”(lol)or something to that effect…no, seriously!!
…i commend you, brutha, that’s a good look.
My man Marc – glad to be of service bruh! Sometimes things have to be explained in a manner that they will be received instead of how we wish to say them. This month I’m just trying to break the complex down so people will stop being afraid of taking that first step in business.
Making money is important but making sure you have access because your papers are in order is even better!
i know im like a over a year late commenting on this post but good game is good game.
i had to look into this tax id number after talking to 1 of my connects at the energy company. she was telling me that when i get started buying these foreclosures the energy company is going to look at what the average bill was for that home and the past due amount and make me put twice that amount down in a deposit.
she told me that this could be in the thousands but to get around that go get a tax id number and use that to cut the lights and gas on. the energy company doesnt charge businesses a deposit, only individuals.
i wonder what other hookups and advantages a tax id number brings?