Sole proprietorship/tax id #?

Question

What steps do I need to take to set up a business as a sole proprietorship in PA?

How do I obtain a tax ID number?

Answer 1

Here are information on How to Start a Business in PA:

PA Open for Business http://www.paopen4business.state.pa.us/paofb/site/default.asp
Starting a Business http://www.newpa.com/default.aspx?id=25
Entrepreneur's Guide: Starting and Growing a Business in Pennsylvania http://www.newpa.com/download.aspx?id=5
Small Business Handbook (environmental compliance) http://www.dep.state.pa.us/dep/deputate/pollprev/information/sbh.pdf

For information on Business Registration, Permits and Licenses go to the following state government websites

Online Business Registration http://www.paopen4business.state.pa.us/paofb/cwp/view.asp?a=3&Q=441248&paofbNav=|
Environmental Permit http://www.dep.state.pa.us/dep/efacts/
Licenses and Permits http://www.dli.state.pa.us/landi/cwp/view.asp?a=124&Q=65635&landiPNav=|&papowerPNavCtr=|29952|#29959
As for getting tax ID number go to
Business Taxpayers http://www.revenue.state.pa.us/revenue/cwp/browse.asp?A=2&BMDRN=2000&BCOB=0&C=21945

Answer 2

@firewater "or a LLC (also a corp)" I am sorry, but you are wrong. An LLC is a Limited Liability COMPANY, NOT a Corporation. It is a legal entity, but only Corporations (xxx, Corp. or xxx, Inc.) are corporations. They file an 1120 unless it has elected to be treated as a sub-S Corporation. This is a formal procedure that requires filing a form with the IRS. "Also I hear it's very tax heavy compared to sole Proprietorship. Is this true" An LLC is a disregarded entity which means the IRS and most states don't recognize it. Therefore the LLC has to elect (decide) how it wants to be treated for tax purposes. Many single member LLCs choose to file as a sole proprietorship. But there are usually annual filing fees the LLC has to pay regardless of the tax treatment. In MA, for example, the LLC has to file annually with the Secretary of State's office; that's $500. AND if the LLC chooses to file as a corporation (regular or sub-S) the DOR expects the required $456 minimum "income" tax imposed on corporations. " I will have ownership of my name " ONLY in the state you register the LLC. Each state regulates business entities (LLCs, corporations, and partnerships) so you could have 50 different Joe's LLC and there would be nothing you could do about it. The only way you can secure your business name is through trademarking. And even that doesn't guarantee some big national corporation won't sue you because they decided they wanted to use it, too.

Answer 3

I agree with sowhat!! Incorporate yourself first, talk to a CPA if you don't know how, then apply for your EIN number, and make sure you get a DUNS number from Dun and Bradstreet, this company will create a profile in the credit part of the business, and then star applying for credit at different places for what your needs are, BUT make sure you don't use your personal information, not even for personal guarantee, STAPLES will give you credit, and gas cards, etc, This will help you (incorporate) inc, llc, etc. , to separate whats personal and business, and the most important is that you can write off so much been incorporated that you cant imagine.....I did it my self, been sole owner for one year, and NOW I incorporate my self, this is my first year doing taxes and saved a bunch !!! Hope that helped you !! Good Luck.

Answer 4

You just "are" a sole proprietor. You obtain a tax id from the irs web site. However, why are you a sole proprietor? Im not an attorney nor am I giving legal advice, however a sole proprietor does not have the liability protection other entities have. I would wonder why you have chosen this business structure.
Good Luck

Answer 5

The IRS only issues EIN (Employer ID numbers) to sole props if you intend to hire employees at some point. If you contact the state website, you should be able to apply for all the necessary state id numbers online.

Answer 6

I dont know for PA but in Cali you need to go to the chamber of commerce and fill out a piece of paperwork,If you need a fictious business name you will need to go hall of records and file, they will require you to run an add in the paper for 6 continuos weeks (it cost me only 40 bucks).

Answer 7

First incorporate. Then file the ss-4 form for your EIN #