Business Xpress Startup Toolkit Step 3 – Tax Numbers
Collin Gabriel August 9, 2021
Ruth Miles (00:00):
Welcome to the start a business video series produced by the Oregon secretary of Ctate corporation Division. This video series is designed to help those starting a business in Oregon understand the steps involved and supplements the business express startup toolkit found online.
Ruth Miles (00:17):
The third step in starting your business involves getting your Tax ID numbers. There are two primary tax numbers that businesses might need in Oregon. One is a federal tax ID number or employer identification number, EIN for short. An EIN can be obtained from the IRS. The best way to get an EIN is by visiting irs.gov and following links or searching for apply for an E I N. EIN’s are free. The process to apply for one takes about 30 minutes. And at the end of the online process, you get your EIN without any processing time. Most banks require an EIN to open a business banking account. Some sole proprietorships may substitute a social security number.
Ruth Miles (01:09):
The second common Tax ID number is a business identification number or BIN. BIN’s are used primarily for Oregon payroll tax and are used by the Oregon Department of Revenue, the Oregon Employment Department, and the Department of Consumer and Business Services, which in Oregon administers workers’ compensation insurance. A business only needs to get a BIN number. If they plan on having employees or register as a corporation. Once you get a BIN you’re obligated to file quarterly and annual reports to multiple agencies about your employees, businesses who fail to respond to department of revenue quarterly payroll notices may have estimated payroll taxes assessed. Some local cities require businesses to register or obtain a city business license in order to operate within city limits. These cities may assign a city tax number to a business. Check with your city government to find out what their requirements are, and if they assign a local tax ID. It’s always a good idea to contact an attorney or accountant if you have questions about taxes or contact the agency that administers the tax you have questions about. Thanks for watching and check out our other start-up business videos for more information.