Should I get a Tax EIN?

[gamex]

I just started a small online business, and I registered a DBA in my city so I can open up a bank account and everything. Is it a good idea to get an EIN to keep my business and personal information separate even though I dont plan on having any employees? I doubt it would hurt me to get one, just wanted to know if anyone had any input.

Thanks!

 

[stscac]

Perfect, I was going to ask the same thing 10 minutes ago.

Looking forward to the response.

-Steve

 

[CrazyTech]

If you desire to get one then sure, but it's not a necessity. I assume from what you're saying that you're operating as a Sole Proprietor?

You don't really need one in this case to be honest. You can use your business bank account to keep things straight.

I'll provide my usual disclaimer with this. Things vary with state to state issues, but I have researched this topic lately. Always consult professionals to be 100% sure.

http://www.score.org is an excellent resource to get in touch with a professional for free.

 

[circa1850]

You may want to consider forming an LLC. Get an EIN when doing this.

An LLC is also a way to protect you and personal assets should you face a lawsuit (God forbid) from a domain name or anything run through the LLC.

Forming an LLC will cost a few hundred. I am in NC but LLC based out of Delaware. Cheaper fees to register and lower franchise taxes. Perfectly legal to register in any state. Shop around. All fees and taxes are, of course, tax deductible.

Talk to an attorney or your tax preparer or accountant. There are many benefits to this.

 

[ForexPros]

to get EIN is very easy. First you have to file SS-4 and then call to IRS.gov to get.. it takes a minutes literally.. try check on tax forum you would definitely find a very detailed answer on how to do that..

 

[stscac]

If you desire to get one then sure, but it's not a necessity. I assume from what you're saying that you're operating as a Sole Proprietor?

You don't really need one in this case to be honest. You can use your business bank account to keep things straight.

I'll provide my usual disclaimer with this. Things vary with state to state issues, but I have researched this topic lately. Always consult professionals to be 100% sure.

http://www.score.org is an excellent resource to get in touch with a professional for free.

That's great. I signed up for SCORE and should be hearing from them shortly.

:tu:

-Steve

 

[CrazyTech]

It's a good resource Steve.

LLC is the way to go. Here in SC it only costs $110 and it saves you if something goes wrong. As said above, I believe Delaware is one of the favorites for an LLC. In the case of an LLC, you have the protection but not all the stringet and complicated tax structure that a corporation would.

 

[stscac]

Do you Denver, or anyone else her have an LLC? I understand that you legally have to have "LLC" at the end of your name, but you can get a trade name to cover that.

What's the deal with the registered agents? Can someone explain that a little more to me?

Thanks

-Steve

 

[kiteflyer]

The registered agent is the contact point for your corp if anybody is looking for the business.

 

[CrazyTech]

Yes, I just converted over to an LLC once I learned more about the process. (I started out going with a Sole Proprietorship but decided the limited liability was more than worth the little extra bit of hassle.) You will need LLC at the end of your company name as in my case of Higher Purposes LLC. At least here in SC there are some other alternatives, but LLC is by far the shortest.

 

[stscac]

Thank you both for your reponses. I am looking forward to my appointment and getting started.

-Steve

 

[user-7256]

Wow, very helpful thread as I am interested in doing all this soon.

Are there any age limits on registering all this stuff?

 

[CrazyTech]

Check with your specific state rules and such, but I'd imagine that you'd need to be of legal age to enter into a contract (or have someone involved who if for your business).

 

[gamex]

Wow, I almost forgot about this thread I started.

Thank you for the information. Currently, I just registered with my city as a DBA, which only cost me $7. I figured I would do that for now, then if my business takes off, then I will register as a LLC.

BTW, when I was looking to file a DBA, I was originally looking online to see how much it was, and some sites wanted to charge $150-$200 for this. I went to my city clerk and filled out a simple form and was done in 10 minutes and paid only $7!!!

I just got an EIN since I figured if I do get an LLC, it would be easier since I already have it. I filled out the form at irs.gov and then it gave me an EIN instantly, which I found surprising.

Thanks for the information!