Some days starting a business can seem immeasurably simple. You decide your business concept, determine your product, establish your pricing, and get started selling. Behind the scenes, however, business establishment can be far more complicated. Even setting aside matters of business strategy and infrastructure, one thing you need to focus on is your business’s legal setup. If you formally register a business both for tax purposes sand to protect your brand, you need to consider the type of business you’ll choose and whether or not you should apply for a tax ID.
Yes, You Can Own a Business Without a Tax ID
If you register as a sole proprietorship, your business tax ID is the same as your personal Social Security Number (SSN). There’s no need to consider a separate EIN unless you’re involved in a business that files excise tax or other specialized taxes. The same holds true for an LLC, or a limited liability company. Your LLC can use your SSN for its tax ID as long as you don’t hire employees. The moment you hire employees you’re required to file as an employer, requiring an employer tax ID number.
But Should You Own a Business Without a Tax ID?
Companies that are recognized as legally distinct entities from their owners, such as S-Corps, C-Corps, and partnerships, all require an EIN to distinguish them as recognizable business entities. These types of companies can often be more complicated when it comes to legal requirements, but they also frequently offer tax benefits that make them a viable consideration. They also make your business accessible through a tax ID lookup.
File for a Tax ID Online
Filing online for a Louisiana tax ID number or a tax ID number from any state is simple with IRS EIN Tax ID Filing Service. Contact IRS EIN Tax ID Filing Service to discuss your options and requirements for a federal tax ID, and get started on your application today.