2006-11-13 04:44:56 · 4 answers · asked by forest lover 2 in Business & Finance ➔ Taxes ➔ United States
Only if you have employees and have to file payroll returns.
2006-11-13 04:52:45 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋
No, you do NOT need a federal id number for your business name....UNLESS you will be having employees. As long as you are the only working person you will file a Schedule C on your personal income tax return...and you can use your personal social security number as the federal id number for the business. If you hire employees, you would then need to obtain a federal id number to be used to report and pay your various federal and state employment taxes, etc. on various payroll tax returns.
2006-11-13 18:37:08 · answer #2 · answered by dltcpa 2 · 1⤊ 0⤋
Yes, you need to have a Federal ID#. The Fed # is like a person's social security #. It's how the government keeps track of your business' income. You will need this number to pay taxes, report social security benefits paid for employees, etc. etc. If you have a business and open an account of any kind with a bank, credit card, anything like that you will need to provide them with the Fed #.
2006-11-13 12:48:43 · answer #3 · answered by momofmodi 4 · 0⤊ 2⤋
Yes for tax reasons you should get a federal tax id number. If you are self-employed it makes it a lot easier at the end of the year to file your taxes and claim exemptions. You may want to contact your local SBA office and ask them as well but I would think you would benefit from organizing your business and getting the ID number.
2006-11-13 12:50:06 · answer #4 · answered by ThinkingMan2006 4 · 0⤊ 1⤋