Every commercial business in the United States is required to file and pay taxes. Even if your company is not making any profit, in most cases you must file a tax return and report the profit or loss of your business.
There are several types of taxes; the most common are income tax and sales tax. In addition, there are many other categories of taxes. For example, capital gains, dividends, rentals, property taxes, real estate taxes, Internet taxes, fuel taxes, and other taxes.
Failure to comply with US taxes can have several consequences and penalties. Make sure to file and pay taxes on time. It is recommended that you have a Certified Public Accountant (CPA) to assist and guide you through the tax process for your business. It is important to keep tax and accounting records and books and follow the required accounting procedures.
The official organization that deals with federal taxes in the United States is the Internal Revenue Service (IRS). The IRS official website has several tax resources, publications, and forms.
The IRS only handles federal taxes. Local state taxes are administered by each state individually. Taxes are generally administered by the state tax department or other designated departments.
Taxpayer identification number (TIN)
All businesses must have a tax identification number or employer identification number. This number is also known as a tax ID.
In the case of corporations or other legal entities, a tax number can be obtained from the IRS (Internal Revenue Service). Every business in the United States must have a tax ID.
If your business is a corporation, you should obtain an EIN for the corporation. This is usually done directly with the IRS. That being said, you can also use a third-party service to process your company’s EIN application. The EIN or company tax identifier is a unique number that only you or your company will have. It will serve to identify your company when filing federal, state, or local taxes in your area.
If you choose to do business as an individual, you can use your own social security number if you have one, or if you cannot get an SSN, you can apply for an ITIN (Individual Tax Identification Number) with the IRS.