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Small Business Checklist Item # 5 – Proper Forms and IDs

We know that it can be exciting to start up a new company and get selling or have your ideas become reality.  The one thing that we ask is that you make sure that you have all the proper forms and certificates in order to sell properly.  Each state require a certain set of forms in order to be a legal business, most require business license and sales tax ID’s.

The business license can differ from where you live in your state.  Some cities require you to have a business license, but if you live outside the city limits, you might not have to.  Please check with your city or county to find out if you are required to have a business license.  This is just a simple form that shows you are a legitimate business, but remember it might not be required.

One certificate or ID that is widely used within selling and business is a resale tax ID, or sales tax ID.  This is an identification number that the state uses for your business.  You use this ID often when trying to setup wholesale accounts or business accounts.  Most wholesale or distribution companies will ask for your business license or sales tax ID, whichever you have.  Make sure that you take the time to get this ID.  Please note that if you plan on selling online, many state’s are now requiring any company that has a distribution facility or office in their state to pay sales tax on any sales shipped in their state.  This comes into play at most when you are dropshipping or having the manufacturer ship products and they are in another state.  This can cause you to have multiple tax ID’s in each state.  Check out your state’s department of revenue for the form.

It can be wise and is sometimes required to get a EIN number or Employer Identification number.  This is a federal number that lets the government know that you are an employer, so you have more people than yourself working at the business.  If you do not plan on hiring at first, you can still get this number in order to get a business checking account without using your social security number.  It is a wise decision and a very easy ID to get.  You can actually do it over the phone or online.  This ID is only required if you plan on hiring employees.

While these are just a few ID’s and certificates, they are some of the most common and used.  You might have to get more ID’s or certificates, but it depends on what you are doing with your business and what state you are in.  Please check with your state regulation body for all the information you need to succeed in launching your business.

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