There are a few procedures you must do after receiving your Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to make sure your firm is legally registered and in compliance with state and federal laws. Following the receipt of your EIN, you should fulfill the following tasks:
1. Register for state taxes: You may need to register for state taxes such as sales tax, use tax, or income tax depending on the type of business you have and the state you are operating in. To find out what obligations you have, make sure to contact the department of revenue in your state or a comparable organization.
2. Register for local licenses and permits: Before you may operate in some cities or counties, you might need to obtain business licenses or permits. To find out which criteria apply to you, contact the local government authorities.
3. Open a company bank account: It’s crucial to keep your personal and professional finances separate for both practical and legal reasons. You can better manage your finances by opening a separate business bank account, which will also simplify the tax filing process. 4. Obtain any insurance that may be required: Depending on the nature of your business, you may need to buy insurance to safeguard yourself against liability or other hazards. Workers’ compensation, property, and general liability insurance are typical forms of business insurance.
Yes, you must get a Seller’s Permit from the Michigan Department of Treasury if you intend to sell tangible products in Michigan. You are permitted to gather and send the state’s sales tax using this permit. You can fill out a paper application or go to the Michigan Treasury Online website to apply for a seller’s permit.
Generally speaking, you might not require a business license if you are selling on Etsy as a hobby or a side business. However, if you are conducting business and making a sizable profit from your Etsy sales, your city or county may require that you seek a business license. Additionally, you could want additional permits or licenses if you’re selling specific products like food or alcohol. To find out your precise needs, it’s usually a good idea to contact your local government offices.
To sum up, obtaining an EIN number is a crucial first step in establishing or operating a business, but it is only the beginning. You can make sure that your company is in compliance with state and federal regulations and well-positioned for success by fulfilling the essential registration, licensing, and insurance requirements.