Hello, I plan on starting a new business in the state of Florida. I am going to be filing for an LLC (limited liability corporation), but I am curious of other requirements. Once I obtain my LLC, do I have to request a Tax ID from the IRS before I can begin receiving money? If so, how exactly do I do so? Also, if I do not have a Tax ID for the business and it comes time for me to file taxes for that quarter, what Tax ID would I provide the IRS with? My personal one? My last question is, after I pay taxes for that quarter and I withdraw all the money from the business' bank account, do I have to file taxes as an individual?
You can apply for an EIN (same as a Tax ID number) once you have formed your LLC. It is a simple form and you can actually apply and get the number over the phone. I believe the form is SS-4. With your new EIN number and your LLC paperwork you should be able to open a business bank account and start to receive money. In many states you can elect to have your LLC taxed either as a corporation or as a partnership. You should speak to an accountant about the benefits and drawbacks of each. If you elect to be treated as a partnership then you will file your partnership income as part of your individual return, if as a corporation, it will file separately.