Tax Exempt

[msthomas]

Today I am one step closer to starting my own business.
I got a Texas Tax number today.
But, my question now is do I really need a IRS tax exempt number?
I am not doing any thing that would be under federal tax code. Unles someone knows different.

Thanks for any information that you might have and share.

[boxofrocks]

If you are a corporation (I think anything other than a sole proprietorship) you need a federal tax ID.

If you've gotten a TX Tax number, your next step should probably be to consult a CPA. Just a good idea, unless you have a strong accounting background. They can give you all of the advice you'll need in that area.

My business is set up as a C-Corp upon the reccomendation of my CPA, but there are other ways to do it.

[Torrey]

For those who haven't heard, Texas is completely changing their tax form. They're doing away with their franchise tax and going to a "margin tax" starting in 2008. This website can help with alot of your tax and general business questions.

http://www.window.state.tx.us/

[CobyPhoto]

Originally Posted by msthomas

IRS tax exempt number

Not sure what you are referring to here. The only real Federal exempt buisness are not-for-profit (501c3) organizations. If you are a Corp, or some other type of organization rather than a sole proprietor or partnership, you would have additional licenses, permits, etc. but not an IRS tax exempt number.

Correct me if I am wrong, but what you maybe referring to, is the Federal EIN number. (Federal Empolyer Identification Number.) You will have to have this IF you plan on employing someone to work for you. You report all your withholding, federal income tax, federal unemployment, etc. under this number.

If you do not employee anyone, you will not be required to have this. If you have already received your Texas Exemption certificate then you have already chosen the form or business organization that you will operate under...sole proprietor, partnership, corp, etc. If you change this now, you WILL have to get another Tax Exemption certificate with the state, as these exemptions are based on the form or business.

Talk to a CPA, and in the case of incorporation, a lawyer as well. It is the only way to make sure you cover all bases and do it right with no surprises in the future.

CJ

[msthomas]

Thanks to all - I do have an appointment for 2006 taxes on the March 2.
Torrey thanks for that link. Foe some reason I have troubles going to that link.
I would hate to think it might be me. But, the page is blank.
If I press the cached page button, it does take me to a page, but I can not open the next link.
I think it is as a Microsoft issue. HA ha

[Torrey]

I'm not sure...it works for me. Can anybody else verify?

[gardener]

The window.state.tx link pulls right up for me too...

[AndrewCCM]

Are you talking about Sales Tax #? If not, You'll need one of those too...that is if you plan to sell anything.. LOL

Fun stuff huh?

Good luck with your new business.