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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 30
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 http://www.irs.gov/businesses/small-businesses-&-self-employed/apply-for-an-employer- Identification-Number-%28EIN%29-Online www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 31
2. You will be asked a series of questions and then issued an EIN upon completion www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 32
Click Begin Application www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 33
Select which type of business entity you have formed. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 34
This screen is just making sure you have selected the correct entity type. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 35
How many Members (Owners) does your LLC have and in which state is it physically located? www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 36
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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 37
Select the reason why you are seeking a new EIN. Your answer will usually be the Started a new business option. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 38
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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 39
Provide the required information for the responsible party. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 40
Address of the business. You can also set a mailing address for IRS correspondence. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 41
On this screen you will give information about the business. The address will be your principal office address. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 42
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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 43
The IRS wants to categorize the line of business your LLC will be in. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 44
Depending on your chosen field, you may have to further describe what you do. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 45
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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 46
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. www.diyentrepreneurguides.com Step 5: Get Your Tax ID Numbers 47