Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Getting your Tax ID and bank accounts when you’re starting your business.

Name: Painting Business Owners: Getting your Tax ID and bank accounts when you’re starting your business.
Uploaded: 2023-12-28T14:00:24+00:00
Duration: 44 s
Channel: Daniel Honan
Description: The speaker explains that when starting a painting business as a separate legal entity (LLC or corporation), owners must keep personal and business…

28 Dec 2023 · 1 min

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The speaker explains that when starting a painting business as a separate legal entity (LLC or corporation), owners must keep personal and business finances distinct by opening dedicated business bank accounts. To do this, they typically need an Employer Identification Number (EIN), which functions as a tax ID for the business similar to a Social Security number for an individual. After forming the LLC or corporation with the state, the owner can obtain the EIN by visiting the IRS website and searching for "IRS EIN" or "employer identification number." The EIN is then used to open business bank accounts under the new company’s name and is essential for paying employees, as payroll requires a business-specific tax identifier separate from the owner’s personal SSN.

Chapters

creating that separate entity, whether it's an LLC or a corporation, you need to create some business bank accounts. You want to keep your business and your personal life separate, and that includes bank accounts. Before you create your bank accounts, you'll need to most likely get an employer identification number in most cases, which is basically a tax ID from the IRS that once you set up your LLC or your corporation with the state, you'll go to the IRS website. You can type in IRS EIN or employer identification number, and you can get your LLC or your corporation employer identification number from the IRS. That's basically like a Social Security number for your business. From And there you'll use that to create your business bank accounts under that new company and that new employer identification number, especially if you're going to have employees and pay them wages. You'll definitely need an EIN that's separate from your Social Security number.