Can I get a Tax ID before the business is started?

Question

Can I get a Tax ID before the business is started? And if so, what type of payments or if anything will the IRS come after me for?

Answer 1

Yes you can go to irs.gov and apply online and the tax id will be sent in the mail. You will have to file taxes on the business the payments depend on your profit and losses and your deductions, just save your reciepts. And if it is a retail business I believe you have to pay your retail sales taxes but I believe that is done quarterly, you can check your local county clerks office foor more info.

Answer 2

You can use your social security number as a tax ID until you hire employees.

You are taxed on the profit you make from the business after allowed deductions. Keep careful records, you really need to go to your state government site, resale taxes are a big issue and they don't take any flack. Also the IRS has stuff on their site that will advise you about federal taxes. See, now you have to pay all of your SS instead of your employer paying half, so that doubles.

Don't get disheartened, tax specialists and bookkeepers don't cost very much if you do it from the start.

Answer 3

Although you can use your SSN as your tax ID, I'd strongly urge against that. File Form SS-4 and get an EIN.

The IRS will expect you to claim the income you earned and pay any taxes due. If you are self employed you should make quarterly estimated tax payments using Form 1040ES to avoid any penalties for underpayment of tax.

Answer 4

If you aren't going to pay wages, you don't really need an EIN or tax ID number from the IRS.

You may need a state ID number if you're going to sell products or services that require you to collect sales tax.

You can apply for a tax ID number from the IRS web site, if you want one, but you'll need to have filed your DBA papers in the county where you'll be doing business.

You need to consult a reputable bookkeeper or CPA in your area so that you have a clear idea of what kinds of records you'll need to keep and how to categorize your expenses, and also know which expenses are legitimate business expenses and which are not.

You'll want to order Publication 334 and a Circular E from the IRS. Those will get you started. You can order them online or download them from www.irs.gov.

Hope your business goes well.

Answer 5

you purchase a DBA out of your state (many times a branch of commerce and commercial code). in case you predict an earnings of $4 hundred a year then i do no longer think of there is lots to fret approximately taxes and there'll ascertain issues you could write off as enterprise expenditures. a visit or telephone call to a interior of sight tax preparer or an accountant you're attentive to in my view would be a extra effective handbook in this branch. you will no longer see any considerable transformations except the earnings turns into lots extra significant then $4 hundred a year nonetheless

Answer 6

To apply for a federal tax ID# you need to file Form SS-4. This can be filed online in order to get your number quicker.

http://www.irs.gov/pub/irs-pdf/fss4.pdf

link to file online:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Answer 7

Yes. And it is quite important you obtain one before the business is started.

Why? Your bank that you intend to use requires it before you can make deposits and write checks.

So fill in the SS-4; by the way you can do it on-line (irs.gov) and get the number immediately.

Answer 8

Yes, at the court house. Tax ID is to show you defer your purchase tax to the consumer of your goods as a reseller. You can buy things to sell tax free that way.