You’ll probably need to get a UBI (Unified Business Identifier) number if you own a business in Washington State. The Washington State Department of Revenue issues this special identification number, which is required for a variety of business-related tasks like establishing your company with the government, paying taxes, and acquiring licenses and permits. How do you locate your UBI number then?
The Washington State Department of Revenue website is the best place to look up your UBI number. Go to dor.wa.gov and select “Look Up a Business” from the menu. From there, you can search for your record by entering your company name or UBI number. You can use your business name and location to search if you don’t have your UBI number on hand.
When you locate your record, your UBI number will be presented with other crucial particulars about your company, including its location, type, and tax registration status. To make sure this information is correct and current, it’s a good idea to double-check it.
Let’s now talk about some further relevant issues. Do I Need to Declare My Etsy Income? Yes, you must disclose income from sales made on Etsy on your tax return if you receive money from those transactions. Your Schedule C (Form 1040) should list this income as part of your total business income.
Does Etsy Require a Tax ID Number for Sales? No, a tax ID number is not required to sell on Etsy. But if you have a business and make money from it, you might need to register it with the state of Washington and get a UBI number (as was previously mentioned). Who Issues UBI Numbers in the State of Washington?
You have a few options for paying yourself as an LLC member. Taking a draw, or distributing corporate gains, is one typical strategy. You can also pay yourself a salary or wages, but bear in mind that doing so will involve more paperwork and payroll taxes. The optimum way to pay yourself from your LLC should be decided in consultation with a tax expert or accountant.
Depending on how the LLC is set up and how revenues are divided, one potential drawback of an LLC is the possibility of double taxation for its members. Additionally, compared to sole proprietorships or partnerships, LLCs require more paperwork and costs to establish up and operate.