Ok I ask a buddy of mine to open a business up with me. he said sure, so I went and filed for a sole partnership tax id #, he got pissed off cues he thought we were going to use his tax id # for a completely different kind of store he already had established a year ago. does it make a difference, is it illegal in Michigan, and am i setting myself up to get screwed over by doing it his way? PLEASE HELP
2007-09-28 05:29:47 · 3 answers · asked by David 1 in Business & Finance ➔ Taxes ➔ United States
I have recived a FEID # just today stating i am leagl. I feel that he wants to use his to cove a (tax free) business.
2007-09-28 06:36:23 · update #1
I don't live in Michigan but I do know that you need your own tax ID#. You do not want to use his. If something happens and you go to court or have legal issues it would be in your best interest not to use his ID. He should have not gotten mad over the situation. You want a different tax ID for yourself to prove you are involved in the buisness.
2007-09-28 05:36:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You need a separate tax ID for this venture since your partnership is a different legal entity from his other business. Doing it any other way can set up BOTH up for problems.
You mention "sole partnership." There is no such thing. There is a Sole Proprietorship and there is a Partnership. If you got an ID as a Sole Proprietor that won't do. You need one for your partnership for this venture. Until you've legally formed the partnership you probably can't get a tax ID as such.
2007-09-28 12:45:01 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
if you're in a partnership - you need a new federal ID # specifically for that partnership
2007-09-28 13:11:26 · answer #3 · answered by Anonymous · 1⤊ 0⤋