If you recently started or plan to start a business in Preston CT or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Preston CT.
Obtaining a Tax ID Number (EIN)
When starting a business in Preston CT, serving as the administrator or executor of an estate, creator of a Trust or operating a Non Profit Organization obtaining a Tax ID (EIN) is a key responsibility. A Tax ID also known as an Employer ID Number (EIN) is a unique nine digit number that identifies your business or entity with the IRS for tax purposes, essentially like a Social Security Number for the entity. A Tax ID (EIN) is used for opening a business bank account, filing business tax returns and in many cases is required when applying for business licenses. In most cases it is helpful to apply for a Tax ID (EIN) as soon as your start planning a business to ensure that there are no delays in obtaining the correct licenses, financing and opening a business bank account that would be needed to operate.
Information to Consider Prior to Applying
Before applying for your Tax ID (EIN) you may want to consider a few things before starting the application including:
- Determine which structure your business or organization will operate as
- Determine the individual or organization that will serve as the responsible party
- Determine the physical address the business/entity will use – A physical address is required for all Tax ID (EIN)’s and a separate mailing address can be specified
Definition of Entities
- Sole Proprietor – An individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC).
- Limited Liability Company (LLC) – A LLC is a structure formed by filing articles of organization which allows members limited liability protection and pass through taxation.
- Corporation – A person or group of people who establish a legal entity by filing articles of incorporation with the state’s secretary of state.
- Estate of Deceased – An estate (or decedent estate) or succession is a legal entity created as a result of a person’s death.
- Trusts – All types of trusts including conservatorships, custodianships, guardianships, irrevocable trusts, revocable trusts, and receiverships.
- Partnership – An unincorporated organization in which two or more individuals share the profits and liabilities of a business venture.
- Church – For tax purposes, a “church” refers to any organization claiming to be a church including temples, mosques, and other houses of worship.
- Non-Profit Organization – Includes public charities, educational organizations, PTA/PTO Organizations, Community Sports Teams, Homeowners/Condo Associates, etc.
Connecticut State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Preston CT you will also likely need a Connecticut State Tax ID. This ID is needed to pay business taxes, state income tax and/or sales tax on items you sell. Generally the State Tax ID is used for the follow:
- Sales and Use Tax
- Employee Income Tax Witholding
- Sales Tax Exemption Permits
- Excise Taxes for items like Alcohol, Tobacco, Firearms, Oil & Gas, heavy machinery, etc.
For specific detail refer to the Connecticut State Website at http://www.ct.gov/drs/cwp/view.asp?a=1509&q=266240
Cities in Connecticut
- Griswold, CT
- Hopeville, CT
- Jewett City, CT
- Lisbon, CT
- Versailles, CT
- Taftville, CT
- Glasgo, CT
- Voluntown, CT
- Hanover, CT
- Norwich, CT
- Norwichtown, CT
- Occum, CT
- Poquetanuck, CT
- Baltic, CT
- Sprague, CT
- Plainfield, CT
- Mashantucket, CT
- Ledyard, CT
- South Canterbury, CT
- Canterbury, CT
- N Stonington, CT
- North Stonington, CT
- Yantic, CT
- Oneco, CT
- Rockville, RI
- Moosup, CT
- N Franklin, CT
- North Franklin, CT
- Franklin, CT
- Franklin Hill, CT
- Central Village, CT
- Central Vlg, CT
- Gales Ferry, CT
- Scotland, CT
- Hopkinton, RI
- West Wauregan, CT
- Wauregan, CT
- Sterling, CT
- North Sterling, CT
- Bozrah, CT
- Fitchville, CT
- Uncasville, CT
- Windham, CT
- Gilman, CT
- Hope Valley, RI
- Old Mystic, CT
- South Windham, CT
- Montville, CT