Tax Preschool: 9 tax things new small business owners need to know

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Live webinar took place on 08-23-2022 @ 01:00 PM EST
Rick, Speaker
DeMei, Moderator

Does reading tax paperwork stress you out? Does the confusing tax lingo swirl around in your head or make you see stars? You're not alone - tax is complex and can be really confusing! But never fear - we're here to walk new small business owners like you through the top nine tax jargon terms you'll most likely come across, and we'll help you break them down into easy-to-understand pieces.

We want to create a community around small businesses, so at the end of the talk, we’ll open it up to live questions from attendees. Tell us about you, your business & what you want to know!

Rick Bromund heads up the tax research team at ComplYant. He's an experienced professional in the tax industry and has previously held positions at Fortune 500 companies and one of the big 4 accounting firms.

Note: This topic covers U.S. businesses only. Any information provided during this event is not intended to be taken as advice or to be perceived as a specific position on any subject of law or tax law.

Q&A

Can I be domestic in more than one state?

So no, you're domestic in the state that assuming you start a business, that particular business is formed in Delaware. You are domestic to Delaware, as long as nothing changes with your company, as far as the registration or the formation, you are domestic to Delaware. Any other state that you operate in, you will be foreign to, whether you reside there, or have different employees there, you will always be domestic to the one state you formed in. And that goes for even if you register to do business in other states, you're still only formed in one company. Like, you'll see, I don't know, ABC Corp, a Delaware company, or whatever the case may be.

Are the Employer Identification Number (EIN) and the tax ID the same thing?

At the federal level? Yes. So, if you're talking at the federal level and the IRS says, I wanna know your tax ID, your EIN, it's all referring to the EIN, your unique number that identified your business. On the state level of just saying, what's your tax ID? It depends on what they're referring to. You would have to get more clarification at that point. Are they referring to your EIN? Are they referring to a specific state-level tax, the sales tax, property tax, things like that, because then they would have possibly different tax IDs.