How to Get a Washington Tax ID for Your Business

How to Get a Washington Tax ID for Your Business

Receiving a tax identification number is an important step for any business owner, but can be seemingly overwhelming to do. While the large amount of government paperwork can be deterring, the process can be simply broken down simple steps. In this article you will learn how to mitigate the tax ID process within Washington state so you can legally operate and scale your business further. This articles is merely a help obtaining a washington tax id – not a strict guideline.

 

What is the First Step?

 

The first step in getting a tax ID is filling out the correct documentation for an Employer Identification Number, otherwise known as an EIN. This is a unique set of nine digits attached to your business which are required to open a bank account, file taxes, and hire employees. It serves as a “social security number” to your business. You acquire this by registering your business, which results in it becoming a distinct legal entity with an inherent set of rights and responsibilities. Before initiating this process, it is important to consider the structure of your business and what title it will claim, the individual who will serve as the responsible party, and the physical address that the business will be attached to on record. An easy way to know if your business needs to be registered is if your enterprises’ gross annual income exceeds $12,000 per year.

 

Washington State and Federal Tax ID

 

As the name implies, these tax ID’s correspond to the rate at which your enterprise will pay state and federal taxes. These forms are used by the IRS to place your enterprise in the correct tax bracket. The process of obtaining a federal tax ID is identical to applying for a state one, and you can apply directly online through the IRS’s interactive portal. There are many services online that can funnel you through the application process quickly and seamlessly.

 

Why do I need an EIN?

 

Even if you are not looking to get a tax ID, an EIN is crucial in protecting your business and your personal assets from legal disputes. If you are generating a revenue and do not pay taxes this can put you at risk for incrimination. You can read more on the process of registering your business as a corporation in Washington state via the Washington Secretary of State website and the State of Washington Business Licensing Service here. Once you have acquired all the necessary documentation you can mail, scan, or fax in your submissions. Keep in mind there is a $19 non-returnable fee for processing your application.

 

Washington state has a highly competitive economy and has an active start-up environment. This makes it a very exciting place to start or continue a business. It is home to some of the largest companies in the country such as Amazon and Microsoft. But before you can tap into the market, you must verify your taxable entity (corporation, non-profit, etc.) with the state. By following the steps in this article you will be able to navigate the process of registering and will be setting up shop in no time!

 

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Looking for a career in a non-profit industry?

There are a lot of college graduates that are looking for a career in the area of nonprofit. There are a plethora of opportunities for people that want to work in this type of environment to engage, but it is good to get an idea of what a non-profit business is actually about.

Funds From Outside Sources for Non-profit

One big thing that people will realize quickly about non-profit jobs is that these companies depend on funds from people that want to donate to a particular cause. A church, for example, functions as a nonprofit organization. There are instances where people invest their time instead of their money because they have skills in certain areas. This is the type of work that goes into the nonprofit environment.

People that want to make sure that they are helping a specific calls may go as far as donating time on a regular basis to help with certain things that need to be done for a non-profit. Typically there going to be companies that provide some type of service without any expectation of money from these people that have received the service. That is often the case for things like counseling and job training. Companies that offer these free services are essentially looking for a way to give back to the community.

Getting Connected to Non-profit

The most common way for people to get connected to a nonprofit organization is through volunteering. That is the most common approach where people will give some of their time in order to learn what the organization is about.

There are different organizations that also allow some people to do interns. Typically, a nonprofit organization is going to need volunteers all the time. These organizations are not seeking payment for the services that are provided so it is going to function primarily by way of support from volunteers and sponsors.

Getting Sponsors in Place

Just getting people that want to donate money or time is a full-time job. There are always organizations in the nonprofit rims that are going to need someone to handle these types of tasks. This is a big part of what the organization does. If there are no volunteers of sponsors it can be hard for organizations like this to function.

Grant Writing

Another thing that plays a very big part in what nonprofit organizations can accomplish is the money that is connected to grants. A lot of people have a part to play in helping these organizations get the grants that are needed to fund many of the activities.

Taking on grant writing is a huge responsibility when it comes to getting things in motion for a new nonprofit organizations. Some organizations depend so heavily on grants that the organization cannot hire workers without funding from the grants. In other words, grant writing is the foundation of some nonprofit organizations. People that have grant writing skills will easily acquire positions to connect with potential companies that offer grants to various non-profit organizations that are serving the community.