how do i go about geting a tax ID, or do i need one starting a bushhoging & tilling co. just odd jobs for hire

Question

Mainly want to do somthing to write off tractor and new shop of of taxes but i want to be legitte any help wouldbe greatly apreciated

Answer 1

If you are not incorporated, you already have a tax ID; it's your Social Security number. If you want to start a corporation or an LLC, you will need to apply for two tax IDs, the federal one called Employer Identification Number, or EIN (you can apply online at www.irs.gov) and the state one (different states call it differently; in many states you can apply by phone or online, otherwise, you apply by mail).

Answer 2

You can file for Fed Tax ID (EIN; Employer Identification Number) online at irs.gov (form SS-4). You only need an EIN if you're going to be a "company", an LLC, a Coporation, etc., have staff, etc. If you're planning on this being a one man you don't necessarily need one.

File for a business license at your local courthouse / municipal center. They'll more than likely require that you show proof of liability insurance first though. If you're going to do any sort of advertising, you should consider getting one, because paying the penalty on the backend (should you get "caught" operating without one) is far more expensive than getting one in the beginning.

If you want to be able to write off your expenses (tractor, supplies, etc), you can file as "self-employed" at the end of the year, but you will be also paying the self-employment tax on any amount earned over $400.. This doesn't require getting a EIN (or even a business license), you can just use your SS# as your Tax ID. If you're going to have employees though, you'll have to get a EIN.

Answer 3

well here's the dilemma.
Do you really need the write off on taxes? If you do you can get a DBA (doing business as) and then give it a name (Joe's tractor service) Keep up with all expenses and then you can write them off at tax time you can get a DBA from most county court houses for about $20. or less. Most banks require it for business checking. Also, look into liability insurance to cover yourself.
If you can get your customers to pay cash for services, and don't really need the tax write off you may come out ahead.
If this is your secondary income you'll have to look at it both ways and see if you would come out ahead with the write off.

Answer 4

With a tax ID comes sales taxes. You can apply for a tax ID from the State in which you live. Usually you can read how to do this on the State's web site.

Answer 5

You need to fill out a form and send it to the IRS, I think you can even fax it. It is called an SS-4. And it's best to have a tax id, even for a small business, and to incorporate, it protects you as the individual should something go wrong with the business.

Answer 6

Just go to city hall and get a license for about $100. All the stuff comes with it.