Читать книгу Start & Run a Graphic Design Business - Michael Huggins - Страница 54

Another item you’ll need in your business is an Employer Identification Number (EIN) if you are in the US or a Business Number (BN) if you are in Canada. This is a number for your business that is similar to your social security or social insurance number. It’s what the Internal Revenue Services (IRS) or the Canada Revenue Agency (CRA) uses to keep track of their business taxpayers.

All businesses require an EIN or BN even if you don’t have employees. The only exception to this would be a sole proprietorship. In this case you could use your social security number or social insurance number in lieu of an EIN or BN. However, if you are a sole proprietor who wants to hire employees, then there is no option — you’ll need an EIN or BN.

In the US, to get an EIN you’ll need to complete an SS-4 form with the IRS and send it to your region’s IRS service center. You can obtain this form from the IRS, your local bank, or your accountant. The process takes about four weeks and there is no charge for the process.

In Canada, you’ll need to contact the CRA to set up your company’s CRA accounts and then file a request for a Business Number. You can register for your Business Number by phone, fax, mail, on the Internet, or in person. You’ll need to fill out an RC1 form to request your Business Number.

If you are in the US, keep in mind that you may also need to get a state employer identification number from the state in which you are doing business. This is so they can also keep track of the money you are paying in taxes to the state in which you have employees. The Employment Development Department (EDD) is the office that will issue these numbers to you. Check with the IRS and the EDD for all the information you will need in order to file your employee federal and state taxes. Don’t forget to check with your local city business office for any additional taxes you may need to pay.