Does anyone have a business license and tax id? If so is the process simple?

It depends on your state if you'll need a business license. Most states don't require one for the type of work we do but to make sure you should check with your own state government.

I don't have a business license but we are registering as an LLP (similar to an LLC but a partnership instead) Part of our process in doing that is getting a tax ID (although as an LLP we file at the end of the year with our own social security numbers). It hasn't been difficult BUT I did finally just pay LegalZoom to handle it for me (and am so glad I did I just don't have time to deal with the forms, etc.)

It was cheaper for me to do it that way, considering the amount of time I needed to handle the paperwork from start to finish - but it's really not that complicated or difficult at all.

__________________

From what I read on the IRS page for EIN (business tax number). If you are a sole proprietor you don't need a EIN; you can use your social security number. This applies to LLC and LLP corporation. If you're LLC or LLP it depends if you're C Corporation, with one or more members, then you need a EIN (business tax number). To read more about this check the irs site. www. irs.gov, click on the business button. I hope this helps.
P.S. you can get your number on line or over the phone the same day.

Phyllis L

I'm not giving legal advice and please don't take this as such. (Sorry. Since I graduated from law school, but am not a licensed attorney, I feel that I need to point that out.)

What Phyllis said about the EIN is correct. If you are operating as a sole proprietor, the business and you are one. So you do not need to get an EIN, even though it is a simple process.

While many places may not require you to get a business license, you really need to look into this where you are. The city that I am in requires EVERYONE who has a home office to have a business license. Also, even if you don't have a business license, you may be required to get a DBA (Doing Business As) if you are operating under any other name.

__________________
~ Tami
Kelley Virtual Solutions

Thanks for all the help everyone. I called my local city business administration and we are required to have a business license. The fee isn't to bad either $189.92 (Long Beach, Ca)

Oh my goodness! The fee that my city requires for a home office/business license is $20 a year!

__________________
~ Tami
Kelley Virtual Solutions

Everything in California is overpriced, but in comparison to the fees for other business licenses that was cheap!! We pay more out here, but the weather is superb!!

Thanks for the reminder! I was so diligent about checking the county, state and federal requirements, that I overlooked the city! I feel better that mine is only $45 for the base tax!!!!

Marcia

I need a city license to operate a home-based business. It's a $100 fee but for that they will list me on their website as a local business so it's a pretty good idea to not just do it under the radar so to speak!

I will also need to register for a federal business number but I don't think there is a cost to that - I'll have to double check that!

The best advice I can give is to go your local city's website and click on the business section. They will have forms, faq's, and so much information that is helpful.