There are a number of regulations that must be met when launching a business in order to verify that you are functioning legally. Getting a UBI number and an EIN number are two of the most important prerequisites. For taxation and commercial identification purposes, these digits are crucial. However, a lot of individuals are perplexed and confuse the two. This article tries to dispel any misunderstandings regarding the differences between an EIN number and a UBI number, their uses, and who need them. UBI Number:
Unified Business Identifier is referred to as UBI. A UBI number is a special nine-digit number that the state of Washington assigns to distinguish and keep track of enterprises that are present there. It is necessary for all companies doing business in Washington State and is utilized for tax and licensing purposes. The Department of Revenue (DOR) of Washington State issues UBI numbers to companies. Businesses can mail in their UBI number applications or submit them online through the DOR website. Employer Identification Number, or EIN, is a number that identifies an employer. It is a nine-digit number given to firms by the Internal Revenue Service (IRS) for tax purposes. For tax filing purposes, including income tax, employment tax, and excise tax, firms are identified by their EIN number. Additionally, banks utilize it to establish business accounts, request business loans, and secure credit. The IRS requires that all businesses, including sole proprietorships, partnerships, and corporations, obtain an EIN number.
If an independent contractor is conducting business in Washington State under a trade name or as a sole proprietorship, they must obtain a business license. An independent contractor does not require a business license if they are conducting business under their legal name. It is crucial to remember that independent contractors must still apply for a UBI number from the state of Washington even if they are not required to obtain a company license. Do I require a UBI number to work in Washington State?
Yes, a UBI number is required for every company doing business in Washington State. All tax filings and requests for business licenses and permissions must include the UBI number. Fines and penalties may be imposed for failure to obtain a UBI number. Do I need a business license in Washington to sell on Etsy?
Yes, you need to get a business license if you sell on Etsy in Washington State. No matter if they sell online or offline, this rule applies to all companies based in the state. Businesses who sell goods on Etsy must also get a UBI number from the state of Washington. LegalZoom versus ZenBusiness
Online legal services LegalZoom and ZenBusiness both help companies build up their legal frameworks, file paperwork, and acquire relevant licenses and permissions. Both companies provide services that are comparable, however LegalZoom is more expensive than ZenBusiness. LegalZoom, on the other hand, has a better reputation and provides a wider range of legal services. In the end, the decision between LegalZoom and ZenBusiness will be based on your unique requirements and financial constraints.
Yes, ZenBusiness has apps for both iOS and Android phones and tablets. The app enables customers to keep track of their orders, contact customer support, and perform business formation and compliance activities.