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To understand bittorrent, it's essential to first comprehend the basics of downloading and uploading data on the web. If you've ever used the internet for streaming television series, HD movies or videos at a minimal bandwidth speed then you know how much information is available online - audio files, video clips, pictures and various other document types.
Your Startups Pre-Launch Checklist: IRS Information (Part 2 of 14)
How to Get a Federal Tax ID
Before your new venture gets started, its important that you let the Internal Revenue Service know of your startup. Giving the IRS your business information is a key step in the pre-launch phase because it allows the IRS to collect taxes on your business and allows you to perform other pre-launch actions. In this post, we will go over the most common way to let the IRS know of your startups existence, which is applying for a Federal Tax Identification Number.
What is a Federal Tax Identification Number?
A Federal Tax ID is also known as an Employer Identification Number, or EIN. Your startups EIN is a permanent number used to identify your new venture and is necessary for other important operational procedures such as opening a bank account, applying for a business license, and filing your taxes. If you are wondering if your new venture needs an EIN, take a look at the six questions below and apply them to your small business. If you answer yes to any of them, youre going to need a Federal Tax ID.
Do you have any employees?
Do you operate your business as a corporation or partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Real estate mortgage investment conduits
How Do I Get My EIN?
Applying for an Employer Identification Number is free through the IRS and can be done:
Getting an EIN online has become the preferred method for entrepreneurs over the years. After you filled out and completed the application, a Federal Tax ID will automatically be issued. However, it will still take the IRS two weeks to put your companys EIN into permanent record, so keep this in mind before you start applying for bank accounts and other business needs. For more information on this process, visit the Internal Revenue Service.