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Getting Business LLC for Tax ID

by DURABLEOILCOM
4 replies
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Is it required to create/form a Business LLC in order to get a Tax ID to buy from Wholesalers and sell? I saw this service to form an LLC https://www.legalzoom.com/business/b...-overview.html
Do forming a Business and getting the Tax ID go hand in hand? Do you need a lawyer/legal service in order to get this done? I am trying to do this in the state of New Jersey.
#business #llc #tax
  • Profile picture of the author Oziboomer
    Originally Posted by DURABLEOILCOM View Post

    Is it required to create/form a Business LLC in order to get a Tax ID to buy from Wholesalers and sell? I saw this service to form an LLC https://www.legalzoom.com/business/b...-overview.html
    Do forming a Business and getting the Tax ID go hand in hand? Do you need a lawyer/legal service in order to get this done? I am trying to do this in the state of New Jersey.
    It always helps to have good legal and accounting advice and I'd recommend forming those relationships early in your business career.

    You can probably register yourself but would you take the risk that you forgot something that was essential?

    Not in my jurisdiction but this link seemed pretty helpful--->
    Getting Registered

    Best regards,

    Ozi
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  • Profile picture of the author dave_hermansen
    It is definitely not essential to have an LLC in order to get supplier accounts. Tons of people - some of our most successful Store Coach students, in fact - are set up as sole proprietors. We do recommend setting up a generic business entity DBA like "XYZ Stores" that you then use as the company name for your tax ID. You then set up separate DBAs for each website and use that generic company tax ID for all of your websites. You contact potential suppliers, "Hi, this is Dave from 'XYZ Stores'. I'm in charge of setting up wholesale accounts for XYZ stores and we definitely would love to showcase your products on our site, "NameOfWebsite.com" ...." That way, you sound bigger than what you may be and it won't be odd that your tax ID is under "XYZ Stores."

    Of course, there are advantage to being an LLC, such as protecting your personal assets from company assets, but that's a whole other issue.

    Finally, like Oziboomer said, it's always a very good idea to get tax and legal advice from the very beginning. It could save you headaches down the road.
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  • Profile picture of the author DURABLEOILCOM
    The LLC sounds like a good move to protect any personal assets right from the get go, thank you for advice what would you recommend using the Legalzoom LLC service or do you know of a better one?
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    • Profile picture of the author Oziboomer
      Originally Posted by DURABLEOILCOM View Post

      The LLC sounds like a good move to protect any personal assets right from the get go, thank you for advice what would you recommend using the Legalzoom LLC service or do you know of a better one?
      The reason I recommended forming relationships with a lawyer and an accountant is because over the years there are many benefits.

      If you choose local people you will also get the benefits of their network of other business people they work with.

      It is always good to get referrals from other local business people.

      You don't need to choose the biggest firm or the one that advertises the most.

      Ask some other local business people who they use and why?

      Network a bit at some business functions in your area and you will meet several professionals who you can chat to and see if they are like-able and have any affinity for what you are doing and then you can consider using their services.

      When I got started I found an accountant first and that was via family recommendations and they were also a relatively small practice with two partners.

      Before I did any business registrations I had a few meetings with them to discuss my plans and to ask advice.

      I asked them if they knew of a good solicitor who could handle the legal aspects.

      They referred me to a lawyer who had small business experience.

      I've used both of those professionals for many years.

      As my business grew so did theirs.

      My accountant's practice now has many partners and he has since exited the business although it still bears his name. With each growth phase both from me and from them I've been introduced to partners who are more suited to my size of business and experience.

      My solicitor expanded and bought out another practice and eventually retired but before he did he introduced me to another colleague who could handle my affairs.

      Now I actually use two solicitors...one is an employment/industrial relations specialist and the other is a more general business solicitor.

      Throughout the years their firms have used my services and referred many clients to my business.

      The best thing about having established relationships is when you need serious help whether that be with financial advice or legal advice they can act quickly and they already know your affairs.

      You need people who are responsive and who you trust to look after you.

      That trust develops when you build the relationships gradually.

      Best regards,

      Ozi
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