If you recently started or plan to start a business in Connecticut or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Connecticut.
Obtaining a Tax ID Number (EIN)
When starting a business in Connecticut, 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 Connecticut 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
- Bristol, CT
- West Haven, CT
- Danbury, CT
- Middletown, CT
- Wallingford, CT
- Enfield, CT
- Shelton, CT
- Milford, CT
- Norwich, CT
- Meriden, CT
- Torrington, CT
- Trumbull, CT
- Manchester, CT
- Fairfield, CT
- Stratford, CT
- Southington, CT
- Naugatuck, CT
- Groton, CT
- Newington, CT
- East Haven, CT
- Vernon Rockville, CT
- Glastonbury, CT
- Branford, CT
- New London, CT
- New Milford, CT
- Wethersfield, CT
- Westport, CT
- South Windsor, CT
- Ridgefield, CT
- North Haven, CT
- East Hartford, CT
- Greenwich, CT
- Guilford, CT
- Darien, CT
- Bloomfield, CT
- Willimantic, CT
- Southbury, CT
- New Canaan, CT
- Rocky Hill, CT
- Monroe, CT
- Ansonia, CT
- Bethel, CT
- Berlin, CT
- Avon, CT
- Madison, CT
- Norwalk, CT
- Wilton, CT
- Plainville, CT