If you dont have employees and you havent established

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Unformatted text preview: , but it’s not unusual to have zoning laws prohibit signs on lawns or houses. Some types of businesses require local or state licenses. This depends on where you are. For example, businesses including day care, hair care, food service, and bars and nightclubs often require special licenses. Resale Licenses and Sales Taxes In states that have sales tax, state authorities manage a system that sets reseller businesses into a special category so they don’t have to pay sales taxes on items they buy for resale. The required paperwork and the state offices that manage it are different in many states, so you’ll have to ask state offices for your state’s rules as you establish your business. CHAPTER 4: STARTING A BUSINESS 4.5 Taxpayer ID and Employer Numbers Employer Identification Numbers (EIN) are assigned by the Internal Revenue Service and state tax authorities. If you don’t have employees and you haven’t established a corporation, then your social security number is your federal taxpayer ID. If you’ve established a corporation or you have employees, then you must have a federal EIN, which is assigned by the federal IRS. In most states, the state assigns a separate state number. The Business Entity The pros and cons of different business formations are worth understanding. They vary by state — this is not a good area for guesswork, and not a good place to save money — so please go through this with an attorney you can trust. The following is for background information. Although the details vary, it starts with the choice between sole proprietorship, partnership, corporation, or the more trendy Limited Liability Company, LLC. Within the corporation classification you have some additional choices, between the standard C corporation or the small business S corporation. Sole Proprietorship Simply put, your business is a sole proprietorship if you don’t create a separate legal entity for it. This is true whether you operate it in your own name, or under a tr...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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