If you recently started or plan to start a business in Severn MD or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Severn MD.
Obtaining a Tax ID Number (EIN)
When starting a business in Severn MD, 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.
Maryland State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Severn MD you will also likely need a Maryland 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 Maryland State Website at http://taxes.marylandtaxes.com/Business_Taxes/New_Businesses/
Cities in Maryland
- Hanover, MD
- Harmans, MD
- Md Motor Vehicle Admin, MD
- Millersville, MD
- Odenton, MD
- Fort George G Meade, MD
- Fort George Meade, MD
- Fort Meade, MD
- Ft George G Meade, MD
- Ft Meade, MD
- Annapolis Jct, MD
- Annapolis Junction, MD
- Jessup, MD
- Linthicum, MD
- Linthicum Heights, MD
- Linthicum Hts, MD
- Maryland City, MD
- Md City, MD
- Russett, MD
- Elkridge, MD
- Gambrills, MD
- Glen Burnie, MD
- Savage, MD
- Severna Park, MD
- Crownsville, MD
- Crofton, MD
- Halethorpe, MD
- Lansdowne, MD
- Arbutus, MD
- Brooklyn, MD
- Brooklyn Park, MD
- Carvel Beach, MD
- Greenland Bch, MD
- Greenland Beach, MD
- Orchard Beach, MD
- Chestnut Hill Cove, MD
- Chstnt Hl Cv, MD
- Clearwater Beach, MD
- Clearwatr Bch, MD
- Curtis Bay, MD
- Stoney Beach, MD
- Montpelier, MD
- Univ Of Md Baltimore County, MD
- Bowie, MD
- W Bowie, MD
- Pasadena, MD
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