IS IT WORTH GETTING A TAX ID

[louslawns]

WELL IS IT WORTH GETTING A TAX ID NUMBER IN THE STATE OF FLORIDA HILLSBOROUGH COUNTY

[G-Man]

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Big Lou,

You already have a tax id - your social security number. Unless you are full time and selling retail - I really don't see the need for one myself. Of course, I don't live in Florida either.

Why are you considering one? Usually, this only complicates things (for me at least) at tax time.

Gary

[Scott]

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Erich is the one to ask on this one.
If you're just starting up, running solo, or have only a helpper or two, I wouldn't.

[Scaper-S2k]

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A solo operator can just use his/her SS#. Easy, and you should.

When you say tax ID number, you are referring to an EIN (employer identification number). That number is optional if you are a sole pro...unless you pay employees. If you have employees, get that number. Other than that, you can just use you Social Security #. To get an Employer Identification Number, you need to fill out a form called SS-4. You can get this from the IRS website. You can either mail it, or call it in. I personally would call it in and make sure it was done properly. Then they will send you the documentation for it. If you call it in, they may give you the number right on the spot, then send you the actual documentation.

Now remember, if you ever get employees or turn that biz into any type of corporation, you will want to get that EIN. Other than that, just use your SS#.

[Scaper-S2k]

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Oh, and don't forget, if you get the EIN, you need to tell your state that you now have it. Because they MAY have to issue you a different number to match the new EIN you have.

It's simply for cross reference. If you pay taxes using your SS#, they may cross that with the state # to make sure all is well.

But the EIN may not match up. THEN, you're in for fun. Now the gov will wonder why no state taxes have been filed with your EIN and the state will wonder why no federal taxes were filed with the SS# they had on record. FUN FUN FUN.

[louslawns]

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thx scaper

[GrassMaster]

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Hello:

The Tax ID Number helps you by not paying taxes on materials that you are reselling to the public.

I used mine quite often at the local nurseries!

[G-Man]

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Admin,

Tell the rest of the story also []

If you get the tax break at the nursery, then you'll be responsible for paying the state - right?

Personally, I wouldn't go through the hassle of getting one just to save on taxes - just pass the sales tax on to the customer through your normal bidding.

If you grow your company to the size where you're hiring employees and perhaps selling something retail - then you'll have to have a EIN and State Tax ID. Until then I follow the K.I.S.S. system - Keep It Simple Stupid!

But don't listen to me....Admin's been doing this a lot longer than I have. []

Regards


Gary

[Scaper-S2k]

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I think the admin. is talking about a different tax number. The EIN is a federal number. Then the state gives you a tax number based off of the EIN. These are to track your with holdings.

The Vendors license number for sales tax is different.

Now, like I mentioned, if you have employees, get your Employee Identification Number.

[catawba mow]

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Can you get insurance without the tax ID#?

[Scaper-S2k]

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Yes you can still get insurance. But you will be using your social security number to do so anyway...which is actually your tax ID number if you don't apply for an Employer Identification Number. Hope that makes sense.

[andersc1]

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Check with your states Comptroller of Public Accounts office on the law. In the state of Texas as of 1988, any lawn company doing services for hire is required to register with the Comptroller for a state sales tax license and charge sales tax on any money paid. Check with your local office for the rules in your particular state.

Curtis

[Scaper-S2k]

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Yes, most states require sales tax ID numbers. I don't think anyone knows whether the initial question was about a vendors number, sales tax ID, or federal EIN. I was speaking about the EIN.