A DC federal tax id number is also called an IRS number. Click
to Find Out What Business Document Filings You Need to Start
Your Business.
Regardless of the
type of business, the location of the business or the
business structure of your new small business,
including the following: a home based businesses,
internet businesses, eBay, online web
sites, professionals, contractors or any other business,
in DC , you are required to obtain or use
any one of these two DC Federal Tax Id
Numbers :
either a Social Security number or DC Federal
Tax Id Numbers. If you are a sole proprietor, a Social
Security number can be used on all your government
Federal Tax Id Number forms and other Federal Tax
Id Number official documents. However, it is
advisable that you apply for a DC Federal Tax
Id Numbers and use that number instead or your social
security number to open a bank account and obtain other
tax ids such as a state employer tax id or a wholesale
Federal Tax Id Number.
Who
Needs a DC Federal Tax Id Numbers ?
Here is why you will need to obtain the DC Federal
Tax Id Numbers : All corporations, and employers
need to get it. Also, optionally, those that wish
to use a business Federal Tax Id Number instead of their social may actually obtain it and use it. Also,
in wholesale license number applications as well
as some other business tax forms, you are required to
provide this number. In fact, some states are required
to have it if you also obtain a wholesale license.
How to Apply and Obtain a Federal Tax Id Number
How do I get
Federal Tax Id Application ?
Every
business needs its own Federal Tax Id Number if the
business is a corporation or if the business structure
is a sole owner. To get a DC Federal Tax Id
Numbers, click
here.
After applying for a federal tax id number, if you
are an employer, once the federal government issues you a tax
identification number, you will need to get a state
Tax Id Number from DC as well.
Find out more here,
or ask your lawyer, bookkeeper or accountant to do this
for you but be prepared to fork out some money.
Here's what Other Tax
Documents and Business Permits You May Need When
Starting a Small Business
In addition to a Federal Tax Id Application, in
DC , if you use a company name other than your own
personal or legal name to start and operate a business, you are legally
required to file a
DBA
Certificate, also known as a dba (doing business
as) form with the appropriate government agency at
the appropriate level. The agency depends on the
state you are doing business in.
You can file a dba as a single owner but you will not
be protected. A
corporation or llc, is probably the best and
cheapest insurance for you and your new small business
if you want to limit your civil, tax, and personal
liability. You will need to keep the formalities
such as recording the minutes of an annual meeting but
that is easy enough and the protections you get are
worth your time.
If you are selling anything taxable, the state wants
you to collect taxes and then give it to the state. To
keep track of that activity, the state issues a
wholesale or retail license. So, if you buy or sell wholesale or retail in
DC
and the goods or items bought or sold are taxable, you
need a
Wholesale License.
If you will hire employees any time in the next
couple of months, you are required to obtain
a Federal Tax Id Number (Employer
Identification Number EIN) as well as a
state
Federal Tax Id Number as well (for DC ).
The government uses these numbers to keep track of the
employment taxes you pay to your employees as well as
keep track of your business since it is also used as a
business id by the feds as well as the state government.
A business license is used to keep new businesses up
to the code and collect taxes from new business owners.
The business license certificate is issued after you pay
a flat annual tax to the appropriate government agency. In most cases, you are required to get an
DC
or state
permit or business License , even if you are working
from home or you have an online business or selling on
eBay- but note: 99.9 percent of all businesses are
required to have a business License or business tax
registration certificate ( both the same).
