Applying for a TIN

[xapooh]

Todd or HHM,
I had my 341 meeting on 3/9/05 and awaiting discharge however, I own a business and I need to get a federal tax id number. Is it safe for me to go ahead and complete the paperwork to receive one or should I wait until after the discharge, should I be granted? Also, also along with having the TIN I need to open a business checking account, should I wait on it also? I spoke to a client that works for a local branch bank and was told that my credit had nothing to do with the business line so they wouldn't run my credit in order to open the business account but I just don't want to send up any red flags. I honestly was in debt w/ college debt and with my business I would like the opportunity to begin fresh and open up a nice salon and spa.

Thank you for all your help in this matter. I hope to hear from you soon.

Xapooh

[HHM]

Is the business a separate legal entity, i.e. Corporation, Limited Liability Company, etc.?

[xapooh]

When applying for the TIN, it will be a corporation. I will be self employeed but I am doing it as a corporation so I will only pay 6% tax for self and the business write off the other percentage.

[HHM]

Umm, to create a corporation, it usually requires that you file Articles of Incorporation with your respective secretary of state, have you done that?. the TIN/EIN is merely a number that identifies you with the IRS, nothing more.

[xapooh]

HHM, I haven't done that yet cause I haven't just truly hired the guy that will handle my accounts. I didn't reliaze there was more to it than just getting the number. Thanks for your help.

[BrokeCh7]

Get Professional help fast

Corporations are different then being self employed. Getting a TIN is a simple form from the IRS and you can have just for filling it out. If you are planning to create a corp. It would be best to start it right. Coverting a self employed business to a corporation is a simple step but more work then needed.

Bank accounts
a self employed person will give their own SS number to open an account even if they have a TIN because the owner is the company.

A Corp. will give its TIN and not the owners SS because in the eyes of the law a corp is its own entity. The owner is just an employed there. When setting up a corp accout bring all your corp docs or thye will not open one for you.

Last if you are getting a new TIN to fool the system to create a new credit file be very careful, VERY VERY CAREFUL. TINs are for business not personal use and all business that are self employed are back up by the owners SS number and corps cost money so only set one up to run a business.

Good Luck

[waziggy]

You can get help on a couple different websites for setting up your business but it all depends on how you decide you want to set it up. I don't know where you got your figure for taxes quoted in your post but I do know if you set up as a sub chapter S Corporation everything rolls over to the personal tax filing. There are no corporate taxes for S Corporations like a C Corp. For your benefit the IRS does have specialist for S Corporations, C Corporations, LLC's and sole proprietorships within there customer service phone system - use them for starters but then again get a book somewhere on business setup (probably a Dummies one out there) and figure out where your enterprise fits. Then again, www.legalzoom.com will process all paperwork for your setup however you decide for a reasonable price. There are other entities out there doing the setup for you but research is required on your part. Another little point is that if you individually declare BK most financial business services (merchant services reads having the ability to take credit cards) and banks you set up your business checking account will have the question asked, "have you or any other officer within your organization ever declared bankruptcy?" Be prepared. Then again some counties will have stuff online for setup within the county. Like I first went to an attorney recently about doing a dba from my S Corp. They quoted a price of $114.00 ($100 fee and $14 registration) but then when I went by to write the check and provide the details I was told the attorney wanted an interview at $250.00 an hour before filling out the paperwork. I checked my county online database and found the dba fill in the blank form as a download to print and fill out; get it notarized and presto I did the dba for the $14 filing fee with the county.