Business Xpress Startup Toolkit Step 3 - Tax Numbers
Summary
TLDRThe Oregon Secretary of State Corporation Division's video series guides entrepreneurs through the business startup process, emphasizing the importance of obtaining tax ID numbers. It explains how to acquire a federal EIN from the IRS, which is essential for opening a business bank account, and a BIN for Oregon payroll tax, necessary for businesses with employees or corporations. The video also advises on local tax ID requirements and the importance of consulting professionals for tax-related queries.
Takeaways
- 📚 The video series is a guide for starting a business in Oregon, complementing the Business Xpress Startup Toolkit.
- 🔢 The third step in the business startup process is obtaining tax ID numbers.
- 🇺🇸 Businesses in Oregon might need a federal tax ID number, known as an Employer Identification Number (EIN).
- 💻 An EIN can be obtained for free from the IRS website by following the 'apply for an EIN' links or search.
- ⏱ The online application process for an EIN typically takes about 30 minutes.
- 🏦 Most banks require an EIN to open a business banking account, although some sole proprietorships may use a social security number.
- 🔑 Another tax ID number is the Business Identification Number (BIN), primarily used for Oregon payroll tax.
- 📋 BINs are issued by the Oregon Department of Revenue and other agencies, and are necessary for businesses with employees or registered corporations.
- 📈 Businesses with a BIN must file quarterly and annual reports to multiple agencies regarding their employees.
- ⚠️ Failure to respond to the Department of Revenue's payroll notices can result in assessed estimated payroll taxes.
- 🏙️ Some cities in Oregon may require a city business license and a city tax number to operate within their limits.
- ℹ️ It is advisable to consult with an attorney or accountant for tax-related questions or to contact the relevant tax-issuing agency.
Q & A
What is the purpose of the Start a Business video series produced by the Oregon Secretary of State Corporation Division?
-The video series is designed to help individuals understand the steps involved in starting a business in Oregon and supplements the Business Xpress Startup Toolkit found online.
What are the two primary tax numbers that businesses might need in Oregon?
-The two primary tax numbers are a federal tax ID number (Employer Identification Number, or EIN) and a Business Identification Number (BIN).
How can a business obtain an EIN, and is there any cost associated with it?
-An EIN can be obtained for free by visiting irs.gov and following the links or searching for 'apply for an EIN'. The process takes about 30 minutes and provides the EIN immediately.
Why might a business need an EIN?
-Most banks require an EIN to open a business banking account, and it is necessary for businesses that are not sole proprietorships.
What is a BIN, and why would a business need one?
-A BIN is used primarily for Oregon payroll tax and is required by multiple state departments for businesses that plan on having employees or registering as a corporation.
What obligations come with obtaining a BIN?
-Once a BIN is obtained, the business is obligated to file quarterly and annual reports to multiple agencies about their employees.
What are the consequences of not responding to Department of Revenue quarterly payroll notices?
-Businesses that fail to respond may have estimated payroll taxes assessed by the Department of Revenue.
Do all cities in Oregon require a business to have a city business license?
-Not all cities require a business license, but some do. It's important to check with the city government to find out their specific requirements.
What should a business do if they have questions about taxes?
-It's recommended to contact an attorney or accountant for questions about taxes, or to reach out to the agency that administers the tax in question.
What additional resources are available for those starting a business in Oregon?
-The Business Xpress Startup Toolkit found online and the Start a Business video series are available for more information.
Can a sole proprietorship use a Social Security Number instead of an EIN?
-Yes, some sole proprietorships may substitute a Social Security Number for an EIN, depending on the circumstances.
Outlines
📘 Starting a Business in Oregon: Tax ID Numbers
This paragraph introduces the third step in starting a business in Oregon, which is obtaining tax ID numbers. It explains the necessity of a federal tax ID number, also known as an Employer Identification Number (EIN), which can be acquired free of charge from the IRS website in approximately 30 minutes. The EIN is essential for opening a business banking account, although some sole proprietorships may use a social security number instead. The paragraph also discusses the Business Identification Number (BIN), which is primarily used for Oregon payroll tax and is required for businesses with employees or those registered as a corporation. It highlights the obligations of filing quarterly and annual reports to various agencies once a BIN is obtained. Additionally, it mentions the potential need for a city tax number if operating within specific city limits and advises consulting with an attorney or accountant for tax-related questions.
Mindmap
Keywords
💡Business
💡Oregon Secretary of State Corporation Division
💡Tax ID Numbers
💡Employer Identification Number (EIN)
💡IRS
💡Business Identification Number (BIN)
💡Oregon Department of Revenue
💡Oregon Employment Department
💡Department of Consumer and Business Services
💡Quarterly and Annual Reports
💡City Business License
💡Attorney or Accountant
Highlights
Introduction to the Start a Business video series by the Oregon Secretary of State Corporation Division
Purpose of the video series to assist in understanding business startup steps in Oregon
Supplemental resource: Business Xpress Startup Toolkit available online
Third step in business startup is obtaining tax ID numbers
Two primary tax numbers for businesses in Oregon: Federal Tax ID and Business Identification Number
Federal Tax ID Number, or EIN, can be obtained free of charge from the IRS
Applying for an EIN online takes approximately 30 minutes
Most banks require an EIN to open a business banking account
Sole proprietorships may use a social security number instead of an EIN
Business Identification Number, or BIN, used for Oregon payroll tax
BIN required by multiple state departments for payroll and workers' compensation
Businesses need BIN if planning to have employees or register as a corporation
Obligations of filing quarterly and annual reports after obtaining a BIN
Consequences of failing to respond to Department of Revenue payroll notices
Local city requirements for business registration and city tax number assignment
Advice to contact professionals for tax-related questions or issues
Invitation to watch other Start a Business videos for more information
Transcripts
Welcome to the Start a Business video series produced by the Oregon Secretary of State Corporation Division.
This video series is designed to help those starting a business in Oregon understand the steps involved,
and supplements the Business Xpress Startup Toolkit found online.
The third step in starting your business involves getting your tax ID numbers.
There are two primary tax numbers that businesses might need in Oregon.
One is a federal tax ID number or Employer Identification Number. EIN for short.
An EIN can be obtained from the IRS.
The best way to get an EIN is by visiting
irs.gov and
following links or searching for "apply for an EIN".
EINs are free. The process to apply for one takes about 30 minutes and at the end of the online process
you get your EIN without any processing time.
Most banks require an EIN to open a business banking account.
Some sole proprietorships may substitute a social security number.
The second common tax ID number is a Business Identification Number or BIN
BINs are used primarily for Oregon payroll tax and are used by the Oregon Department of Revenue,
the Oregon Employment Department, and the Department of Consumer and Business Services,
which in Oregon administers workers' compensation insurance.
A business only needs to get BIN number if they plan on having employees or register as a corporation.
Once you get a BIN you're obligated to file quarterly
and annual reports to multiple agencies about your employees.
Businesses who fail to respond to Department of Revenue quarterly payroll notices
may have estimated payroll taxes assessed.
Some local cities require businesses to register or obtain
a city business license in order to operate within city limits.
These cities may assign a city tax number to a business.
Check with your city government to find out what their requirements are and if they assign a local tax ID.
It's always a good idea to contact an attorney or accountant
if you have questions about taxes, or contact the agency that administers
the tax you have questions about.
Thanks for watching, and check out our other Start a Business videos for more information.
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