Getting the Details Right
Starting your own business can be an exciting but often confusing time. There are many regulatory hurdles you must face. First of all, you need to choose the correct business entity structure (you should consult a Orlando CPA to compare your options), and secondly, you must make sure you have the proper federal, Florida and Orlando city business licenses.
What is an Employer Identification Number (EIN)?
The IRS requires you to have an Employer Identification Number (EIN) (aka Federal Tax Identification Number) from the IRS if any of the criteria below are applicable.
You need an EIN if:
- You have employees or are planning to have employees in the next year
- You operate your business as a corporation or are set up as a partnership
- You file tax returns for employment, excise, or alcohol, tobacco and firearms
- You withhold taxes on income, other than wages, paid to non-resident aliens
- You have a Keogh Plan (retirement plan for the self-employed)
- You actively manage or are involved with the following organizations:
- Trusts, except certain grantor-owned revocable trusts, IRAs, exempt organization business income tax returns
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators
Apply for your EIN online.
The person applying must have a valid Taxpayer Identification Number (SSN, ITIN, EIN). You can apply for your EIN online at IRS.gov. It usually takes under 10 minutes to complete the application.
Here are some other reasons your Orlando business may need an EIN.
Even though the IRS may not require you to get an EIN number, you will find out very quickly that other organizations you do business with will.
They may include:
- Your bank when applying for your business account
- Credit card companies
- Local business licenses
If you ever work as an independent contractor, you will need a EIN in order to receive a 1099.
What are the Florida and Orlando new business regulations?
If your business is collecting taxes in the state of Florida, you are required to register with the state. You can do this online from the Florida Department of Revenue business portal . You must do this before you start your business activities.
The City of Orlando also licenses businesses, professions and occupations that have locations or branches within the Orlando city limits. You are required to have a Business Tax Receipt as proof of payment of the business tax. The city of Orlando has a business website with helpful links and applications for getting started.
In addition, you will need to get an Orange county business tax receipt AFTER you get your city business tax receipt.
As an Orlando-based accounting firm, we have been helping businesses big and small navigate through the government bureaucracy.
Contact us at (407) 901-6229 if you have questions on your government obligations or need any help at all making sure your tax structure is right for you and your Orlando business.