do i need to obtain a dba or tax id # if my business is going to be internet based only?

Question

i am planning to open a internet based business and need to know if i need a dba or tax id number
i was told that a dba would only protect my business name in the county i obtain it in
any information on this matter would be greatly appreciated

Answer 1

If you will operate your internet business as a sole proprietors, you don't need to get a Tax ID Number. Sole proprietors with no employees are not required to get an EIN, and can instead use their Social Security numbers.

The Internal Revenue Service (IRS) web site at http://www.irs.ustreas.gov/businesses/small/article/0,,id=98350,00.html contains all the information you need about EIN and how to apply for an EIN electronically.

A fictitious business name is the name of your business, if different from your own. If you are operating the business as XYZ Desktop Publishing, for example, you are required to register the fictitious or assumed business name at your city or county clerk’s office.

Registering your fictitious business name is important for a number of reasons. Banks look for proof that you have properly registered the name when opening a business account. An even more important consideration is that you won't be able to enforce any contract that you sign under an unregistered name. An unregistered business name also leaves that name open for use by other businesses, even your competitors, which may jeopardize your business.

Some states require that the fictitious business name be registered with the Secretary of State or other state agency. Procedures vary, but the process is fairly easy. In most states, you'll register it at the county level. Be sure to call your county clerk’s office to find out its procedures, requirements and fees. Filing fee ranges from $10 to $50.

Answer 2

For the purposes of collecting and paying taxes as well as taking tax credits allowed to a home business, you'll want your business and tax licenses. It doesn't matter if your business is run online or not, you want to make sure your business is 100% legitimate. Some vendors will not sell to you without your business paperwork registered with your county or city or state. The fees for the licenses are tax deductible so there's no reason not to be legitimate. Every county, city and state have their own rules and regulations so if you don't want to be audited or sued make sure you follow the rules.

Answer 3

If you are doing any business, you do need to get a tax id. Might want to call your city hall and ask them what you need to do to start a business in their county, they will guide you from there...