Interesting Discovery While Getting My Federal EIN & State Tax Permit

[user 49910]

Yesterday I was seeking to get my Federal EIN Tax number and my State of Texas Sale Tax permits. I had experience in getting EIN numbers for the non-profit organization I volunteer for and their separate entities, but I had never done one for a retail business. So I was cautious and hesitant to just start clicking away and grab the first opportunity that appeared on the search page. I knew that non-profits were not charged, but wasn't sure about a business.

While searching for the proper page at the IRS to do the online form, these websites kept popping up with very "governmental sounding" web addresses. In addition, very proper looking government-looking web page layouts, etc. One must be VERY discerning the website when searching. I knew I had to be sure that the address ended in "dot GOV" None of these websites did, but piqued my curious nature. So, for kicks and giggles, I checked one out and it wanted to charge me $279 to get my EIN! They claimed they could expedite it quickly and I could get it in less than 10 days or so. What a bunch of malarkey! I backed out of there real quick. Then 15 minutes later I get an email offering me a 50% discount if I purchase it that day. I must have been special in their avaricious eyes.

So did another search using the terms "IRS EIN application online", about 6 lines down on the page appeared the correct website:
https://www.irs.gov › small-businesses-self-employed

I clicked on that link and got the correct page and began to fill in the info boxes.
The IRS DOES NOT CHARGE YOU for getting an EIN for your business, at least not for a sole proprietorship business.
I filled in the information requested and had my EIN number and clicking the SUBMIT button in about 30 seconds. Downloaded it as a PDF file and is stored on my OneDrive and an external SSD drive too.

Then I went to the State of Texas Comptroller site and filled in the info boxes, including my Federal EIN and got that Texas Sales Permit number in about 30 seconds too... no charge. Some of the questions were more specific, and took a couple of time to read them more thoroughly to get the gist of what it was asking, but all in all I got my Texas number too.

NO CHARGE from either site. Now I am not sure about other states and how they do their sales tax permits so be sure to check your state's requirements.

Any site that tries to charge you money for a Federal Tax EIN is ripping you off! Do not give these websites your hard earned money when you can use it for other soap making items such as oils, butters, packaging, essential oils, etc.

Just my 2¢

 

[glendam]

thanks for the heads up, I am sure it will be helpful to many.

Now that you have your sales tax permit from Texas, they will expect you to file and report your sales every so often. I remember I had to do it quarterly initially when I was selling jewelry, but then based on the amounts they switched me to annual filing. They should send you a reminder when it is due.

 

[TheGecko]

Yeah, a lot of companies out that taking advantage of others and they make enough, that they can pay for top SEO listings. It does not cost anything in the US to get either a federal or state ID number for your business. All you need for the State ID is to type in "[state] Secretary of State" and they will provide you with a lot of information. In my state, Oregon, you don't need a BIN (business identification number) unless you have employees.

We do have a problem in Oregon with the filing of Annual Reports...required of all business except for Sole Proprioritships. There is a company that sends out an official looking document a good two months before the State sends out their notice...you fill out their form, mail in a check for $200 and they will file your report. They get away with it because it says on their form that they are not affiliated with a State, that they are a private service provider and they do file your report. But the thing is...it's only $100 to file it yourself and takes maybe five minutes.

 

[user 49910]

Texas, they will expect you to file and report your sales every so often.

Yes they sent me an email with the first report due by the end of April 2022.