Federal taxes and State tax requirement depends on the legal structure of your business. First, you need to determine your business entity structure.
Tax returns in the United States are reports filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency.
Tax planning encompasses many different aspects, including the timing of both income and purchases and other expenditures, selection of investments and types of retirement plans, as well as filing status and common deductions.
There are three basic ways to reduce your taxes, and each basic method might have several variations. You can reduce your income, increase your deductions, and take advantage of tax credits.
Also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, the EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. It is corporate equivalent to social security number.
The form you’ll need to fill out is IRS Form SS-4. If your business does not have employees, the IRS recommends you label the top of the form SS-4 “For Identification Purposes Only.” EINs do not expire. Once an EIN has been issued to an entity, it will not be reissued.
A state tax ID number (sometimes called a State Employer ID) is required to pay tax When you run a business that hires employees or sells tangible goods.Keep in mind that you may need to register your company as an official business with the state before you can get any state tax identification number.
Knowing when the tax year starts for your small business is important to meeting filing requirements.