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Starting a Business,

Start Here: Applies to ALL businesses

TAKE THIS SHORT QUIZ TO FIND OUT WHAT YOU NEED:

Are you selling,
tangible
items ( e.g., clothing, or gifts) ?

Yes

No

Most Likely You Need a Federal Tax Id Number Form

A 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 Texas , you are required to obtain or use any one of these two Federal Tax Id Numbers : either a Social Security number or Federal Tax Id Number. 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 Federal Tax Id Number 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 Federal Tax Id Number ?

Here is why you will need to obtain the Federal Tax Id Number : 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 Federal Tax Id Number, 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 Texas 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 Texas , 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 Texas 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 Texas ). 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 Texas 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).