This week in my business class has been the least appealing to me. Legal entity and corporate structure and taxes. Ach! All subjects nearly equal to math in their ability to garner my attention. But in case I have readers who really want to know here is what I learned for Washington State residents.
But first for anyone, to get an EIN – Federal Tax ID Number – one needs to go here:
To become a legal entity in Washington one needs to fill out the appropriate form here:
https://www.sos.wa.gov/corps/Forms.aspx
One also needs to register with the Department of Revenue which will allow one to also register or pay taxes for each location in the state where work is done. Including links to register with the city where business is located. Not all cities require registration so research on each business owner’s part will be needed.
http://dor.wa.gov/content/doingbusiness/registermybusiness/
From the Department of Revenue in Washington State it says that I need to collect sales tax even for digital products such as an online magazine.
http://dor.wa.gov/content/FileAndPayTaxes/BeforeIFile/Def_TxClassBandO.aspx#0004
If I ever got to the point of having employees then I would contact: https://esd.wa.gov/employer-taxes/EAMS-SecureAccess-Washington and http://www.lni.wa.gov/ . Then I would be pretty much all set.
I am glad to have this behind me. For now. I do intend to move to one of the southern states in the next ten years or so…at which point I most likely will want to create a business there. So these skills and this list of steps to take will certainly come in handy.