What are my option as far as liability as a business owner? My employees will be in direct contact with shoppers. What if this company becomes really big will I be able to sell shares in the stock market? If not now soon I will have others involved as owners of the company.

 

To limit any liability for debts or civil actions arising out of business transactions you may want to set up an LLC or form a corporation. An LLC will limit any liability for injuries incurred by clients while shopping in your business establishment. If you have big plans and perhaps thinking that you eventually be a big company you will need to have a C corporation to sell shares in the stock market. An S corporation can only issue stock to a small number of shareholders and the stock cannot be bought publicly that is in the stock market. Though a sole proprietorship does not need a federal tax ID number a partnership does. A partnership also needs a fictitious business name to operate as well as a partnership agreement.

What is the significance of a business permit as it pertains to a federal tax id number? Read the FAQs below for more... Frequently Asked Questions 1. Do I need to file any paperwork with my state? 2. Do businesses have to obtain the taxpayer identification number (TIN) from vendors and keep it somewhere on file? 3. I am opening a business and plan to have employees. What license(s) do I need? 4. Is there a fee charged to obtain a business permit? 5. How long does it take to get a business license? 6. If I purchased an existing business, can I use the previous owner’s business license? 7. How do I know how much business tax I will have to pay per year? 8. What is the significance of a business permit as it pertains to a federal tax id number? 9. Why they call a business license a license? 10.Why partnerships need a business license and an assumed business name registration? Q:Do I need to file any paperwork with my state? A:You will need to obtain a state employer number if you are an employer, a general business registration, in most states, and a state sales tax ID if you sell tangible taxable items merchandise. Q:Do businesses have to obtain the taxpayer identification number (TIN) from vendors and keep it somewhere on file? A:Yes, you will need a form w-9 which is a Request for Taxpayer Identification Number. Q:I am opening a business and plan to have employees. What license(s) do I need? A:You will need a busines registration, an ein tax identification number, and an assumed business name. Q:Is there a fee charged to obtain a business permit? A:The fee for the business license tax permit for our service is $49 and for the federal ID $29. There may be additional charges from the government agency such as advance annual business tax before they issue a business license permit. Q:How long does it take to get a business license? A:Most applicants registering Online on this site will receive their account number in one to three days. Others will receive their account number within ten business days. If the registration is not filed electronically, it may take up to four weeks. Business permits cannot be obtained over the telephone. Q:If I purchased an existing business, can I use the previous owner’s business license? A:No, you must register for a new business license under your own name or the name of the corporation, partnership or LLC. Q:How do I know how much business tax I will have to pay per year? A:You should use these forms along with the tax tables found in the publication to determine how much income tax should be withheld from each employee’s paycheck. However, the government will mail you a bill each year for your business license business tax you owe. Q:What is the significance of a business permit as it pertains to a federal tax id number? A:A business license is a business tax registration based on your gross annual income and perhaps your location. IRS acknowledges a Federal Tax ID number or an EIN number as a nine digit number used by businesses or corporations for any taxation related purposes. It thus becomes crucial for any entrepreneur to get a federal tax ID number before he decides to start a business. A tax identification number would be required whenever an owner files a return or makes a deposit. Q:Why they call a business license a license? A:They call it a license because the government permits you to do business based on some critiria they choose such an appropriate commercial location. if you are a partnership corporation or LLC or you want to use a federal id to open a bank account. Q:Why partnerships need a business license and an assumed business name registration? A:When you are a partnership, the partnership must obtain a business license, an assumed business name certificate and be identified by the federal tax id number.

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