Envisioning the Business - How to Start a Home-based Computer Repair Business - page 27

n Apply by Mail. The processing timeframe for an EIN application received by mail is four
weeks. Ensure that the Form SS-4 contains all of the required information. If it is determ-
ined that the entity needs a new EIN, one will be assigned using the appropriate procedures
for the entity type and mailed to the taxpayer. Find out where to mail Form SS-4 from the
second page of the form.
I prefer to visit www.irs.gov on the Internet. This is where you'll want to start your paper-
work and first register your EIN. According to the IRS website, you need an EIN if you:
n Started a new business
n Hired or will hire employees, including household employees
n Opened a bank account that requires an EIN for banking purposes n Changed the legal
character or ownership of your organization (for example,
you incorporated a sole proprietorship or form a partnership) n Purchased a going business
n Created a trust
n Created a pension plan as a plan administrator
n Are a foreign person and need an EIN to comply with IRS withholding
regulations
n Are a withholding agent for taxes on non-wage income paid to an alien
(such as an individual, a corporation, or a partnership)
n Are a state or local agency
n Are a federal government unit or agency
n Formed a corporation
n Formed a partnership
n Administer an estate formed as a result of a person's death
n Represent an estate that operates a business after the owner's death Since the very first
item on their bulleted list is “started a new business,” this is the very first thing you should
consider doing on your road to being self-employed. Registering and obtaining your name
quickly is important. At this stage you will need to divulge the type of business, whether
it be a sole proprietorship, partnership, LLC, or other type of business. It's a good idea to
have had a meeting with your lawyer and accountant before you make any decisions as to
the structure of the business that might be costly to correct later.
This is some of the real work required to get a business off of the ground. Most people don't
have the knowledge it takes to get things moving and therefore countless small businesses
never get off the ground because of obstacles like registering an EIN. Since you're taking
the path to self-success, forge forward and you'll find that the process is much easier than