If you recently started or plan to start a business in Vest KY or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Vest KY.
Obtaining a Tax ID Number (EIN)
When starting a business in Vest KY, 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.
Kentucky State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Vest KY you will also likely need a Kentucky 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 Kentucky State Website at http://onestop.ky.gov/start/Pages/statetax.aspx
Cities in Kentucky
- Leburn, KY
- Soft Shell, KY
- Bulan, KY
- Duane, KY
- Ajax, KY
- Talcum, KY
- Tribbey, KY
- Hardburly, KY
- Heiner, KY
- Fisty, KY
- Dwarf, KY
- Emmalena, KY
- Tina, KY
- Bearville, KY
- Dice, KY
- Ary, KY
- Clayhole, KY
- Rowdy, KY
- Carrie, KY
- Mousie, KY
- Gunlock, KY
- Waldo, KY
- Brinkley, KY
- Hindman, KY
- Garner, KY
- Larkslane, KY
- Hueysville, KY
- Elmrock, KY
- Elkatawa, KY
- Talbert, KY
- Saldee, KY
- Noctor, KY
- Quicksand, KY
- Decoy, KY
- Guage, KY
- Guerrant, KY
- Haddix, KY
- Jackson, KY
- Lambric, KY
- Frozen Creek, KY
- Canoe, KY
- Altro, KY
- Athol, KY
- Wolf Coal, KY
- Wolverine, KY
- Garrett, KY
- Raven, KY
- Typo, KY