So federal and state tax I. D. S. Now this is an I. D. Given to you also known as an E. I. N. Or an employee identification number given to you by in our example by the United States, federal government. It allows you to pay business taxes with that specific tax ID versus your Social Security number. Again, this is another example of us separating you as a person and the business as an entity. Um I also use my E. I. N. Number or my business tax I. D. To pay other people because you're gonna, if you end up hiring assistance, so you end up hiring a second shooter and you start paying them a certain amount of money in your region. You'll have to issue them more tax documents. And so everything will be done under the federal I. Of that number versus your Social Security number. So your new business will have a federal and state tax I. D. And that's the number that you're going to use to not only pay taxes but you also need that to set up a bank account for your business. The bank will not ...
open a separate business account if you're a business without a tax idea. So basically think about it as a Social Security number for your business, your business, it's its own person and has its own Social Security number. It's called the Federal Tax ID. And usually this is issued to you once all your paperwork has gone through and you've been approved, they'll mail it to you. Um You can also go to the I. R. S. Website in the United States and you can look up how to apply for that for free. Um Again very different in every city, state and region across the world. For the United States, we will include a link in our description on the worksheet for you to get to that.
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