STEP 5: GET YOUR TAX ID NUMBERS

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1 STEP 5: GET YOUR TAX ID NUMBERS Obtaining the required tax numbers for your business is probably the easiest thing you will do during this process. It is a completely online process, and should take at most 30 minutes to get all of your numbers. This is also the place where you can get ripped off the most. At the time of this writing Legal Zoom is charging $79 to get your federal EIN, something that is free and can be obtained online through the IRS in about 5 minutes. Let s show you how. I will show you where you can fill out online forms to get your federal and state tax numbers. In the rest of this chapter I walk you through the forms screen by screen. Once you have completed both forms and gotten your numbers you are ready for Step 6. Step 5: Get Your Tax ID Numbers 30

2 FEDERAL TAX NUMBERS (EIN) You are going to need an EIN if you are starting a business. While you legally don t need one if you are a single member LLC, you will are going to need one if you have employees or want to open a bank account for the business. This process is quick and easy. 1. Start here and select Apply Online Now Identification-Number-%28EIN%29-Online Step 5: Get Your Tax ID Numbers 31

3 2. You will be asked a series of questions and then issued an EIN upon completion Step 5: Get Your Tax ID Numbers 32

4 Click Begin Application Step 5: Get Your Tax ID Numbers 33

5 Select which type of business entity you have formed. Step 5: Get Your Tax ID Numbers 34

6 This screen is just making sure you have selected the correct entity type. Step 5: Get Your Tax ID Numbers 35

7 How many Members (Owners) does your LLC have and in which state is it physically located? Step 5: Get Your Tax ID Numbers 36

8 This is the screen that will be returned if you select 1 for the number of members. Your screen may look different here depending on the number of Members in your business. Step 5: Get Your Tax ID Numbers 37

9 Select the reason why you are seeking a new EIN. Your answer will usually be the Started a new business option. Step 5: Get Your Tax ID Numbers 38

10 The responsible party is the principal officer or owner of the business. The person that controls the entity and its disposition of funds. If there are more than one responsible party, you may chose whichever party you want for the IRS to recognize as the responsible party. Step 5: Get Your Tax ID Numbers 39

11 Provide the required information for the responsible party. Step 5: Get Your Tax ID Numbers 40

12 Address of the business. You can also set a mailing address for IRS correspondence. Step 5: Get Your Tax ID Numbers 41

13 On this screen you will give information about the business. The address will be your principal office address. Step 5: Get Your Tax ID Numbers 42

14 Answer some basic questions about your LLC. The first 4 will Most often these will be no unless you have a unique business. The last question is for if you plan to hire employees in the first year. Step 5: Get Your Tax ID Numbers 43

15 The IRS wants to categorize the line of business your LLC will be in. Step 5: Get Your Tax ID Numbers 44

16 Depending on your chosen field, you may have to further describe what you do. Step 5: Get Your Tax ID Numbers 45

17 You can choose to get your EIN Confirmation immediately after submission in the form of a PDF or have them send it to you through the mail. Mail will take 4 weeks. Step 5: Get Your Tax ID Numbers 46

18 The final page is just for you to review your information to make sure you entered it correct. You will then hit submit at the bottom of the page. And that is all there is to getting an EIN. Now we will take a look at the state tax registration you will have to do. Step 5: Get Your Tax ID Numbers 47

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