If you recently started or plan to start a business in W Groton MA or have another taxable entity one of the first things you will want to do is obtain your Tax ID in W Groton MA.
It’s important to understand that there are 2 different types of Tax ID’s that you will likely need in W Groton MA, a Federal Tax ID (also known as an EIN) and a State Level Tax ID.Obtaining a Tax ID Number (EIN)
When starting a business in W Groton 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 W Groton 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
- West Groton, MA
- Shirley, MA
- Shirley Ctr, MA
- Shirley Center, MA
- New England Business Brm, MA
- New England Business Svc Inc, MA
- Groton, MA
- Ft Devens, MA
- Fort Devens, MA
- Ayer, MA
- Devens, MA
- Lunenburg, MA
- Pepperell, MA
- East Pepperell, MA
- E Pepperell, MA
- Townsend, MA
- Harvard, MA
- W Townsend, MA
- West Townsend, MA
- Still River, MA
- Dunstable, MA
- Pingryville, MA
- Littleton, MA
- Leominster, MA
- Fitchburg, MA
- North Lancaster, MA
- Lancaster, MA
- Boxboro, MA
- Boxborough, MA
- Westford, MA
- Forge Village, MA
- Nabnasset, MA
- Brookline, NH
- Hollis, NH
- Tyngsborough, MA
- Tyngsboro, MA
- S Lancaster, MA
- So Lancaster, MA
- South Lancaster, MA
- Bolton, MA
- Ashby, MA
- Vlg Of Nagog Woods, MA
- Vlg Nagog Wds, MA
- Acton, MA
- Village Of Nagog Woods, MA
- Greenville, NH
- Mason, NH
- North Chelmsford, MA