Tax Question...

AMLConstruction

When I started my business in August, I was using my social security number for tax purposes...primarily for the reason that I got my first job a little quicker than I expected and did not have a chance to get a tax id #. Now that it is 2007 and my business will be growing, I want to get a tax id #. I have been looking online for more information, but it looks like there are so many different options, etc. I am a bit confused on which way I should go about this. Any hints? Thanks!

Mike Finley

We need to use some big business words here to better understand what you are asking.

You are a sole proprietor now and are thinking about changing to an LLC or a s-corp? If that's the question then the answer is always going to be yes, do it.

Just look on line for sole proprietor, LLC and s-corp.

ButlerDesigns

Like Mike said, Get a name for your company and go LLC (my opinion) and then request a Tax ID number. You have to have all your ducks in a row before you can get certain things. It's a big big pain at beginning, but worth it in the end

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John Butler
Butler Designs, LLC

AMLConstruction

Sorry I was not more descriptive on what I needed as far as tax info. I am sole proprieter now Ihave the name of my business unfortunately I can't use AML const. so I had to think of a new name. More importantly I dont know the differences between inc. corp. s-corp llc etc. or what would best suit my business I will look into s-corp and llc theres just so many different terms can be confusing. I'm used to being a grunt so all this legal crap is new to me it will take some time to get used to. HAHAHA I said GRUNT...

Double-A

First thing is to hire a CPA and/or an attorney. They will advise you and explain all this stuff. You will have to decide on how much personal liability you care to take on as a 'legit' business owner and that will decide on how you will hold your company out to the world as a legal tax-paying entity.

We can tell you what we do, and its still not right for you. You must decide this on your own. One things is if you start out as one type of business, you can still change to another. Good luck.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006