Tax Caution by 401k
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After starting a new LLC or corporation, there are a few tax and registration options you may want to consider. Most people do at least the first one.
1. Get a tax ID (EIN) for your new business
The first step after you start a new LLC or corporation is to get a tax ID (EIN) for your new business. If you want to open a bank account, you will need an Employer Identification Number (“EIN” or “tax ID”) for your business. Getting an EIN is free and taxes only a few minutes.
The IRS has simple instructions for obtaining a tax ID online, by phone (800-829-4933), and other methods.
2. Get a Minnesota state sales tax ID for your business
Many businesses do not need to get a state tax ID. However, if you will have employees or are required to charge sales tax for your sale of goods, you will need a sales tax. You can get a state tax ID from this page at the Minnesota Department of Revenue. Or visit the Minnesota Department of Revenue’s business page.
3. Elect to be taxed as an S corp
Reminder: Annual Renewal
As a reminder, LLC owners need to renew their business registration each year. You can renew online. It’s free, and it takes less than 60 seconds. Instructions: Minnesota LLC Annual Renewal.