If you recently started or plan to start a business in Bethesda MD or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Bethesda MD.
Obtaining a Tax ID Number (EIN)
When starting a business in Bethesda 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 Bethesda 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
- Chevy Chase, MD
- Geico, MD
- W Bethesda, MD
- Walter Reed Natl Mil Med Ctr, MD
- National Library Of Medicine, MD
- National Naval Medical Ctr, MD
- N Chevy Chase, MD
- North Chevy Chase, MD
- Chevy Chase Village, MD
- Chevy Chs Vlg, MD
- Martins Add, MD
- Martins Additions, MD
- Somerset, MD
- National Institute Of Health, MD
- Chevy Chase, DC
- Glen Echo, MD
- Dir National Intelligence, DC
- Cabin John, MD
- Kensington, MD
- Westlake, MD
- Garrett Park, MD
- Takoma Pk, MD
- Maclean, VA
- N Bethesda, MD
- No Bethesda, MD
- North Bethesda, MD
- Georgetown Univ, DC
- Wheaton, MD
- Gannett, VA
- Usa Today, VA
- Wachovia Bank, VA
- Takoma Park, MD
- Silver Spring, MD
- Howard Univ, DC
- Rosslyn, VA
- G W Univ, DC
- Catholic Univ, DC
- Parcel Return Service, DC
- Parcel Return Svc, DC
- Prs, DC
- National Security Counsel, DC
- State Department, DC
- Washington, DC
- Federal Energy Reg Comm, DC
- Hillandale, MD
- West Mclean, VA
- Tysons, VA
- Tysons Corner, VA