Federal Tax Id
State Tax Id
Starting a Business
In this article you will learn
the legal process of registering a business so you don't run into
Disclaimer and agreement:
This article is for
informational purposes. It
does not provide legal advice nor does it establish an
You agree that
if for some reason you think that you are receiving legal
advice, you will stop reading this article.
In this you
will learn whether you need:
B.A. from The University of Nevada and a Juris Doctorate (J.D.) from
Loyola University School of Law.
See a Table of
How to Start a Business in
In some cases you may need a professional business license, such as
's, contractor's or accountants, but in most cases, the
following is all you need, with the exception of businesses that involve
hazardous substances - you need a zoning clearance for such cases
planning to start a business
don't forget business regulations....
required to have a business license or home
required to file and publish a DBA / fictitious
business name if you use a business name different
from your own personal name,
required to have a sellers permit if you sell
taxable items, and
required to have a federal tax id if you are a
corporation or you are an employer.
You also are
required to have a state ein employer number if
you have employees.
Most small business advisors
recommend that you at least file a fictitious name, a
business license and obtain a federal tax id.
If you already decided on the type of service
or product to sell, you are ready to start your business.
The next thing you need is to choose a
legal business entity:
advantages and disadvantages of sole proprietorship,
partnership and corporation. However, if you are ready to
operate your business, just go ahead and
First, file a
Fictitious Business Name
or Incorporate Your Business: If you do
business in a business name (e.g., Carpet
Express) other than your personal name
(e.g., John Smith),
and publish a
Business Name, or
Incorporate. You need a fictitious business name
statement certificate or a corporation certificate so you
can open a merchant or business bank account.
Third, in California, you need a
State Tax Id: EIN Employer ID,
if you have employee (s).
So, if you don't have employees, you don't need one. Note:
you must have a federal tax id before you can obtain a state
same as a Seller's
Permit, Sales Tax Certification, Wholesale License -- you
need a sellers permit if you buy or sell wholesale or you
sell retail - you don't pay taxes when buying wholesale.
Example, you sell computers or clothing online in
California.. you need a sellers permit to buy wholesale tax
free. When you sell, you charge taxes (collect taxes) to
pay to government later.
businesses need a business license. This is the same as
business tax registration and it is not the same as a
fictitious business name. Note: you need a fictitious
business name to open a bank acount - not a
a Table of Required Documents