If you recently started or plan to start a business in Byfield MA or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Byfield MA.
Obtaining a Tax ID Number (EIN)
When starting a business in Byfield MA, 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.
Massachusetts State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Byfield MA you will also likely need a Massachusetts 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 Massachusetts State Website at https://mtc.dor.state.ma.us/mtc/_/#2
Cities in Massachusetts
- Newbury, MA
- Rowley, MA
- West Newbury, MA
- Georgetown, MA
- Newburyport, MA
- Plum Island, MA
- Groveland, MA
- Ipswich, MA
- Amesbury, MA
- Salisbury, MA
- Salisbury Bch, MA
- Salisbury Beach, MA
- Merrimac, MA
- Haverhill, MA
- Boxford, MA
- West Boxford, MA
- Topsfield, MA
- Bradford, MA
- Ward Hill, MA
- Seabrook, NH
- S Hamilton, MA
- South Hamilton, MA
- Newton, NH
- Hamilton, MA
- North Andover, MA
- N Andover, MA
- Newton Junction, NH
- Newton Jct, NH
- Plaistow, NH
- South Hampton, NH
- So Hampton, NH
- E Kingston, NH
- East Kingston, NH
- S Hampton, NH
- Wenham, MA
- Essex, MA
- Middleton, MA
- Hampton Falls, NH
- Hathorne, MA
- Danvers, MA
- Hampton Beach, NH
- Hampton, NH
- Kingston, NH
- Lawrence, MA
- Bar Coded Irs, MA
- S Lawrence, MA
- South Lawrence, MA
- Beverly Farms, MA