Getting EIN - Employer Identification Number

[tmakt]

Now Im trying to get a EIN (Employer Identification Number). Some of the questions Im not fully understanding is:

1. Does your business need to file form 720 (Quarterly Federal Excise Tax Return)? I will basically be transporting clients loads using my trucks and trailers.
2. Do you have, or do you expect to have, any employees who will receive Forms W-2 in the next 12 months? W-2 forms as opposed to what?
3. What is the first date wages or annuities were or will be paid? Select month and year. How do I make this assumption at this point?
4. Do you expect tax liability to be $1000 or less in a full calendar year? By selecting yes, you are electing to file an annual employment tax return, Form 944. If you prefer to file a quarterly return, Form 941, select no.

Any input is greatly appreciated. Thank You

[tallen]

For 2 - as opposed to 1099-Misc (i.e. contractors or non-employess), or employees that you are paying under the table -- basically, they want to know whether you are going to have employees or not (in the next 12 months).

For 3 - When do you think you will be hiring your first employee? Don't forget that you may have to be paying yourself as an employee (i.e. through payroll) if your are organized as a corporation.

For 4 -Your payroll tax liability will be 15.3% of your payroll (assuming Congress doesn't fiddle with it again following the fiscal cliff thing). What do you think your total annual payroll will be? If the total of all wages and salaries you expect to pay over the whole year will be less than $6535 (=payroll tax liability of $1K), then you can probably file the form 944 just once a year instead of having to file form 941 four times a year. Of course, you may also want to consider how much federal income tax you'll have to be withholding from your employees, too....

Don't have a clue on Q1.

One could ask, if you are not going to be hiring any employees in the next 12 months, why apply for an EIN now?

[dave@businessecon.org]

An EIN is similar to a Social Security Number, when you go into business the IRS wants to understand what that business does in comparison to you as an individual. They call it an Employer Identification Number but it goes beyond the scope of hiring employees. So yes you will need one. I would check no employees to start out with thus you will not be required to file quarterly reports. However if you are registering as a Corporation, you will need to check that box because you will hire yourself to provide the services. You will need to file Form 720 if you are going to use a Tractor to haul loads. It this is true, I suggest talking with a CPA because there are procedures you will need to follow to be in compliance. If you are using a small trailer to haul then the answer is no to the Form 720.

Dave

[tallen]

I wrote:

One could ask, if you are not going to be hiring any employees in the next 12 months, why apply for an EIN now?
Yes, of course, if your business is organized as something other than a sole proprietorship, you will need and EIN regardless of whether you actually have employees.

[huggytree]

hire a good accountant and he will guide you through all these questions