On the subject of business formation - Judy Posted: Sep 25th, 2016 - 11:47 am In Reply to: It just - Occurred to me
With the EIN, you go to IRS.gov and apply. With this application, you indicate whether you are going into business as yourself as a sole proprietor or a one-person LLC, or a partnership, etc. I recently formed an LLC with my son. First, we had to get the EIN. Then, I went to my state website to register the business. It cost me $100. I could have paid Legal Zoom $149 plus the $100 registration fee, but found it was just as easy to do myself. I'm not sure if it costs anything to "register" a sole proprietorship in the same way as an LLC. It might be totally free.
The main purpose of our registration with our state, though, was to be able to legally conduct an online ecommerce business, which includes handling collection of sales tax from buyers who live in our state and then paying it to the state. With MT work, this obviously would not apply.
It seems to me that the EIN can exist and be used without registration with the state, but does not constitute a business license. However, I recall applying years ago with an MT company that simply required an EIN; did not require formal business formation. Again, the EIN is free from irs.gov and you can use your own name as a sole proprietor, like "Jane's transcripton" or whatever.
If the company just needs a copy of your business card, that's pretty easy and inexpensive to make or order online.
If they require you to actually form a business as a separate entity from yourself, that's more complicated and likely cannot be done without registering with your state.
I am not a lawyer, tax accountant, or anything like that. I am just sharing what I learned from my own experience. I'm certain that requirements may differ depending on your personal situation.
Best to you!
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- On the subject of business formation - Judy
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