There is always at least one thing that every individual is passionate about. But if that same individual is really talented and good in that field, he can turn it into a profession or a working business. Although the competition is present in every business and market can get tough, but this passion for the business is what will help one to survive those dark times until they taste success. People who worry too much about finances stick themselves to 9-5 jobs because that makes them feel their future is secure this way.
But little do they know that they are committing a crime to their heart, mind and body. Starting one’s own business is scary at first but if one is in 20s and have no mouths to feed or no people who depend on them, they have nothing to lose and only to gain. The first decision one has to make as a business owner is which entity one has to form and run his business on. One can register their business as sole proprietorship, Limited Liability Company, Partnership, S-corporation etc. depending on how serious they are and how big of a business it is going to be.
After deciding what sort of entity they would like to use, they need to know how to get federal tax id. Just like social security number can be used to identify any individual, federal tax id can help government officials to identity the business and verify that the taxes paid by the entity is right or not. One can apply online for tax id on the website itself to obtain tax id number for their entity from the IRS.
This federal tax id number is also known by some other names like Tax ID Number (TIN), Employer Identification Number (TIN), and Federal Employer Identification Number (FEIN) and is of the format 12-3456789. Websites greatly simply this whole process of cumbersome filing documents and information that one has to do if they were to apply online for tax id number directly with the IRS.
If one chooses that they want to grow their business as an LLC because of all the major benefits that LLCs have over sole proprietorships and reduced documentations and mandatory obligations than S corporations, one must also know how to create an llc number. From the same website one can choose LIMITED LIABILITY COMPANY option from the given list of all entities allowed by the government after which they will be redirected to a very detailed yet simplified form.
After filling out the entire form with details of all the members of the soon to be established LLC, where one member has to act at the managerial status and his social security number along with many other documents has to be attached with the form itself. After paying the small amount of fees to the website for making this whole process 100 times simpler, one will get message of the LLC number within an hour but it will still take 10 to 14 business days before one can start filings for taxes and begin seeing their company name on various websites while filing taxes.