When you start an online business, you need to take care of some legal matters. The first thing to consider is to get a Colorado business registration where you need an EIN. Few online business owners get their EIN using their social security number. It may work for a while but it isn’t the right thing to do for a long-term business.
Some people wanting to start a home-based business are more concerned of making money the fastest ways. It is very important however to see ahead and take necessary steps to start your online business. This will hopefully save you money and time along the way.
Whenever the IRS requests for a TIN, you may need to enter the EIN or social security number as your Colorado business registration. This will certainly identify your business regardless of wherever you are in the United States. If you plan to file taxes as a sole proprietor, it is not obligatory if you don’t have any employees. However, it is good business practice to have one. It will also show that you are a serious and legitimate business in the country.
You can possibly get an EIN by accessing the IRS website. You simply have to download the Form SS-4 and accomplish it in about ten to fifteen minutes. You need to truthfully indicate your personal information and may need some documents to be attached with it. Never use third-party online services to obtain your tax ID number. They will charge you for something that is handed free and very simple to obtain.
You need to know your business structure and entity before you apply for a Colorado business registration. Your business must be a sole proprietorship, partnership, corporation, or limited liability company to apply for an EIN. IRS regulations state that an LLC owned by one person must have two tax ID numbers. The first one will be for the sole proprietor and the other assigned to the LLC. It may sound beneficial when you consult a tax attorney before applying for an EIN. The EIN will be your identification number for a lifetime.