Hello I have a question about getting a tax id or ein for myself. Since I am my only employer and I am new to the va business. I'm trying to locate any threads or information on tax ids and the sort (if one already exist). I did a search and maybe I searched incorrectly, but I didn't see anything specific in the results. I'm from Chicago and will be getting my tax id via the irs.gov site since I believe it is supposed to take a few minutes to have one assigned to me. So far I have yet to service a client; let alone collect any payment; so this is something I know I need to get done soon. Thanks!
My SS# is all I need where I live, however, I'm a sole proprietor at the moment and I'm sure that will change when I eventually switch to becoming an LLC.
From the IRS site:
Quote:
Does a small company need a tax ID number?
A sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns is the only business person who does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number.
References:
* Publication 334, Tax Guide for Small Business
* Publication 1635 (PDF), Understanding Your EIN
* Form SS-4 (PDF), Application for Employer Identification Number
IF you are a sole proprietorship and IF you do not have any employees you will not need an FEIN. Your taxes will all be paid on your individual social security number. If you set your business up as a separate entity (LLC, Corporation) or have a payroll that requires employee/employer tax reporting then you would need to get an FEIN. It is relatively painless to do so.
Best wishes in your new business.
You might want to check out this thread for some great information. After I read it I logged onto the IRS website and got my EIN number within minutes.
My business is set up as a seperate identity (LLC). I currently have an EIN because i didnt want to use my SS#. DO i also need to get a FEIN? I have tried to open an online savings account through Capital One. They will not let me use my EIN, they are asking for a TIN. What is this and what is the difference between that, FEIN, and the EIN. Can one be substituted for the other?
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Alisa A. Beatty ~Assistance You Can Count On~ www.virtual-jane.com
The basic difference between EIN and TIN, is that the Tax Identification Number is used for the tax purposes of the company, and when that same number is used to record the taxes of the employees, it is called EIN.
Tax ID Question
Lily Chambers, The Virtual Office Goddess, LLC
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