Lessons

Lesson Info

Obtaining A Federal EIN

are you using your Social security number? Be honest with me. Daria. You are, aren't you? And yeah, I know. Okay. You're all right. So you're a sole proprietor but you were smart and you went out and got an E. I. N. Number, two separate your business activities from your social security number. And that is a smart thing to do. So regardless of whether or not you're using an LLC. Never use your Social security number to do business with. We need to have an employer identification number which we are going to do. Do you know who needs an E. I. N. Jim? I think that would be me and blue steel photography. Still clear. More importantly, I mean it's really all about blue steel today, but I appreciate your needs as well. So here we go. We are going to to figure out how to do this. It's a piece of cake. You can do it yourself. You do not need a lawyer. See how much money I'm saving you. Lorenzo. I mean, this is cheap. Thank you. You feel the value and feel it very much. Sorry, let's do an SS f...

our together. You can go to IRS dot gov. Not good and I don't have control of the power point on here. So I'm actually gonna do it just like everybody at home is doing it. I'm gonna leave. Go Daddy. Somebody remind me about if anybody goes and buys blue steel before I paid for it. I will find you and I will come to your state and I will wreak legal legal havoc upon you. So don't troll blue steel photography, anybody that's watching this live. I thought of it. Okay, here we go. So www dot I R s dot gov. Actually, the easy way to find it is just a google I R S s s dash four and look what it does. Gove dot tax federally I. N. Make sure you go to the government website, not patrol website. Um, I'm not sure that that is the government. That's good dot and that's not it. Here we go. That's the pdf. Yeah, make sure that you're at an I. R. S dot gov website. Otherwise you may be in putting your data into some Russian mail order bride website. Okay. I believe this is the right web address. So if everybody gets there I. R. S dot gov forward slash businesses etcetera etcetera. That is the official government form, not any kind of Russian bride ordering form. Not that there's anything wrong with that Everybody in the class got that up that wants one. Okay, this is super easy. At the bottom of the page, it says apply online now. Now this is a protected computer warning from the government because they're obviously very concerned about our security healthcare dot gov. And uh, I want to make sure that you understand that if you if you misuse the system, you can be prosecuted. Say okay. Um, and then there's a begin application button. Please click that. All right, guys, you're you're you're you're like halfway through law school right now, which button do I click Mallory? Tell me, are you there with me? Are we a sole proprietor now? Yes, we're in LLC. Sorry, are we a sole proprietor? Are we? Partnership? Corporation, LLC. Yes, let's click it. Drum roll continue. You've chosen LLC continue. How many members in this, LLC? Lee? Uh huh. Lee how many members one? Yes. You and your wife? That's a single member because we are a husband and wife team. What state are we physically located in? Yeah. Now, if we were physically located in Washington, we would pick Washington here. Got it. Everybody get that. But where am I located? Springfield Missouri home with the Springfield Cardinals People. Okay, we are district. We are disregarded entity. It says everything gets passed through to our tax return. We filed 10.40. It likes us. It's just telling us were simple. Um, not simple minded. Just simple choose one reason that best describes why you're applying. We started a new business. We hired employees. We want a bank account. We changed our type of organization and we persist to business. What did we do today? Okay. Business started a new business. Yeah. Who is the responsible party? The responsible party is. Let's just make it. An individual will make it simple. That's me first name. Then it just asks for my address. I'm just showing you how simple this is. Click the continue button. I didn't like the fact that I put a period on there. Yeah, tell us about the LLC the legal name of the LLC. It has to match the articles of organization. So, um, what does it say on the articles organization? It says blue steel, photography. What's on the end LLC doing business as nothing. Where is it located at Greene County Missouri? Where the articles are filed? Now the articles are filed. Where? Where do I find my articles of organization Missouri Missouri? When, when, When did it start? Well, today is Halloween, which is october Of 2013, correct. Um, well look, it said review it for typos. I put anne in there. That was the right name. Wasn't blu jim. Do you agree? Is that the right name? Looks good to me? Okay. Jim says it's good. So it's good with me. Does your business own a highway motor vehicle with uh, no. My gambling? No. Well, it depends on how I write my business plan. Does your business need to file a quarterly excise tax return? No. Do you manufacture alcohol, tobacco or firearms? Not yet. Do you have or expect to have any employees in the next 12 months? No continue. How does your business or what your business do? Are we uh I answered a question for a photographer on what we do? The correct answer is other. Okay, that's what we do. If you're creative, just pick other. Okay, Please choose one of the following that describes your activities. I want to go back. Hold on a second. Any changes you make will be discarded Kansas. Is that okay? If I uh if I click back, it should take me to the previous page. All right. Um Yeah. Other, that's correct. And then there's another other where we put photography or graphic design or whatever. See it. Mhm. Or graphic design or art direction or whatever. You are All right. You want to get your letter online? Yes. Okay. Let's review it. Blue steel Photography. Green County Missouri formed in october. There's my address. There's my phone number. I'm the sole member. I started a new business and I don't have anything submit. Mhm. There's my I. N. Yeah. You click on this and this isn't this is the form you save right here. Okay. Everybody see that. Print this out. I'm going to print it. I think I don't know how you print on a Mac, but I'm sure it's possible. All right. Mhm. What? All right. Alright. So, thank you. I appreciate it's kind of like a joint like Mac tutorial, like how to form your business on a Macintosh Yes. Value. It's just using value. So check it out. Look what we've done. Okay. And this has just been in the second half. I mean we're not we're in the homestretch of the second installment. We've now formed the company. We've checked our name to make sure nobody else is using it. We've got ourselves a tax I. D. Number. This is probably farther than I'm not judging. It's just probably farther than a majority of our our audience has gotten in the formation legally of their business. Okay. And that's ok. But you've got to get it done. It didn't take us any time. And we've got our tax ID number and we're all set up this, this tax concept that we have here. Our new company is going to have some some tax liability. All right. Let's think about what that could be. Oh, here's my baby. Look at this. Mhm. Here's my federal letter that I'm gonna put in my company binder with my articles of organization, my operating agreement in my tax ID number. If I march into any bank, pretty much in the United States or the Cayman islands, I will be able to open a bank account in the name of my company. Okay. And that's super cool. Uh So we'll we'll open our new bank account for blue steel photography and we'll start to think about what our tax liabilities could be. If we make some money here is the best way to avoid all federal and state and local taxes. Jim you want to know what it is. Make no money. If you make no money, you pay no taxes. But if we're successful in our business plan starts to work and we're experiencing growth. We're going to have to think about federal income tax and again, is a single member LLC that all flows through just to my little 10 40 tax form. So it's nothing unusual. It just gets reported on schedule C. Um, if I have employees, I'll have to pay FICA, which is the combined, uh, secure Social Security, S Security and Medicare tax, I'll have to pay my self employment tax, which we'll talk about later. And there are certain excise taxes, which generally don't apply to photography businesses, But if you're interested, check out IRS publication 5 10. Um, moving on to the next slide, but we also have some state tax liability. Um, the state taxes include state income tax, state withholding tax for employees, retail sales tax, which we'll talk about later vendors use tax, consumers use tax and unemployment tax. So there are some tax consequences to actually making money, but I'd rather make money and pay taxes than not make money and avoid taxes. Uh, The withholding tax goes along with employees and withholding taxes. You know, if we have employees that were paying and they're, they're making money along the way. Uh, the uh, click the withholding taxes is kind of our doing our part as an employer to get that squared away. You'll have to register for withholding with your state, You have to have a state withholding tax number and you're gonna pay the combined mm Social Security tax. FICA is 15 ish percent, the employer pays 7.5 ish percent and the other employee has to contribute their own 7.5%. So we have to send that in. Uh, we pay the employees half, they pay their other half. You have to pay it on time. Guys, if you don't pay it on time, there are a number of nasty penalties and it can actually be some real bad mojo because if you would hold the money from your employees and I represented companies that have done this, hey bob thanks for working for the last quarter. My I pay my withholding quarterly and yeah I've withheld several $1000 that will go to credit your account. But you know I really gotta pay this album company because I gotta get this album to deliver to uh lovely Zoe. Her wedding was so beautiful. Did I tell you about it? It was down at the country club and the sunset came in. But anyway she needs this album. So I am not gonna pay your withholding tax. I'm sorry about that but I'll make it up later. Don't worry about it run, don't walk from working for me. That's going to create some potential criminal liability. If I take my withholding money and use it for myself to do other company business. So you need to have kind of a separate bank account to put your withholding money in. If you're not paying weekly, pay it on time. Bad mojo if you don't.