Do I need a Tax ID number? I'm SELF EMPLOYED, HELP!!!?

Question

I'm starting my web design business, but don't know how to get a tax id number or what forms to fill out or anything. I am the only person working, no employees or anything, just me! Does that effect how I need to file or whatever? I have no idea what to do.

I build web pages for individuals and small businesses.

Please someone tell me what I need to do.

Answer 1

As a sole proprietor you only need a federal ID number if you have employees or need to file an excise tax return. There are other "odd" times that require you to have a federal number... but they are very infrequent. You can follow this link to the IRS to see if any of them apply http://www.irs.gov/businesses/small/article/0,,id=97872,00.html

As has been mentioned, your social security number is your federal id number if you are a sole proprietor with no employees.

You need to keep good record of your income and expenses. Again, if you are a sole proprietor you will report these on Schedule C when you file your personal income tax. If you are making a lot of money, you might also consider seeing a tax professional to help you prepare estimated taxes. Paying estimated taxes may avoid penalties for underpayment of taxes due to the increased revenue.

Answer 2

You'd use your social security number as your tax id.

Keep very good records of your income, and any associated expenses. It would be a good idea to have a CPA prepare your taxes for the first year, so yu can see how it's done. You'll report your income and associated expenses on a schedule C, then fill out a schedule SE to calculate your self-employment tax (social security and medicare). The numbers from the bottom of these schedules will transfer to a form 1040 to calculate your income tax.

You should file a form 1040ES quarterly, and send in the estimated taxes on the income you earned that quarter.

Answer 3

You have a tax ID number. It is also know as a Social Security number. If you hire employees at a later date, you will need an Employer Identification number.

Answer 4

you use your social security number. that is your tax id. also, go find a CPA. it is well worth the money to have them handle your taxes for you, and they can advise you on these types of questions, and they will also tell you if you should LLC and help you get liability insurance (which you need!).

Answer 5

Is your business a sole propriety? or a LLC or C-Corp .

If it is a Sole Propriety, then your ssn will be your fed tax id number. One of the others, I think you will need EIN number.

If you are talking about sales tax, contact your department of revenue.

Answer 6

You need a federal EIN. You can apply for one online at the link below.

You may also need a state version of the EIN, but the federal one comes first.

Other than that, there's very little else you need, though you should probably talk to an accountant or a lawyer too.

Answer 7

visit IRS.gov web site
do get a tax number for your 'biz' so you don't have your SS # all over the web.
get ID theft insurance also.

Answer 8

to open up a corporation that is how you get a tax id #...depending on what state you are in there are different websites.I would just type in open a corp. on yahoo search

Answer 9

Thanks! Extremely informative and it gives me better insight