The best strategy to succeed in filing the FinCEN BOI Form is to plan ahead. Do not improvise; save this information, and if you still have questions, we are here to help. Contact us for assistance to ensure your business complies with all financial transparency regulations.

The Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit code assigned by the IRS to businesses and other entities operating in the United States. It functions similarly to a Social Security number for individuals but is used exclusively for business and tax purposes. The format of an EIN is XX-XXXXXXX.

Getting an EIN is necessary if you have employees, operate a corporation or partnership, or need to file certain types of taxes, such as payroll or sales and use taxes. In addition to meeting tax obligations, having an EIN allows you to open business bank accounts, apply for business credit, and establish business relationships with suppliers and customers.

Getting an EIN is necessary for several reasons, including:

Tax Reporting: The EIN is used to identify your business for all tax-related purposes. This includes filing federal and state tax returns, reporting payroll taxes, and handling other tax obligations.

Hiring Employees: If you plan to hire employees, you will need an EIN to report wages and employment taxes to the IRS.

Opening Business Bank Accounts: Most banks require an EIN to open a business bank account. This separates your personal finances from your business finances, which is crucial for accurate accounting and tax reporting.

Applying for Business Licenses and Permits: Many local and state governments require businesses to have an EIN when applying for licenses and permits.

Establishing Business Credit: An EIN is often needed to apply for business credit. This can help you build a credit profile for your business, separate from your personal credit.

Corporate Structuring: If your business is structured as a corporation or partnership, an EIN is mandatory. Sole proprietors can also benefit from having an EIN to maintain separation between personal and business identities.

The process for obtaining an EIN is relatively simple and free. You can complete IRS Form SS-4 in several ways: online through the IRS website, by phone, by fax, or by mail. 

Steps to Obtain an EIN

Determine Your Eligibility

Location: You must have a principal business located in the United States or U.S. Territories.

Responsible Party: The individual applying must have a valid Taxpayer Identification Number (SSN, ITIN, or EIN).

Prepare the Necessary Information

Legal Name of the Entity: The name of the business as it is legally registered.

Type of Entity: Whether it’s a sole proprietorship, partnership, corporation, LLC, estate, trust, etc.

Reason for Applying: Starting a new business, hiring employees, creating a trust or estate, etc.

Responsible Party Information: Name, SSN, ITIN, or EIN of the principal officer, general partner, grantor, owner, or trustor.

Choose Your Method of Application

Online: The fastest and most convenient method.

By Fax: Useful if you prefer not to apply online and need a quicker response than mail.

By Mail: Suitable for those who prefer traditional methods, though it takes the longest.

By Phone: Available for international applicants.

The online application process is straightforward and can be completed in a few steps:

1. Visit the IRS Website
   • Navigate to the IRS EIN application page.
2. Start Application
   • Click “Apply Online Now” and follow the prompts.
   • The application session expires after 15 minutes of inactivity, so have all information ready.
3. Provide Information
   • Enter the legal name, structure, and type of business.
   • Input the responsible party’s details.
   • Provide reasons for applying.
4. Submit Application
   • Review your information for accuracy.
   • Submit the application.
   • You will receive your EIN immediately upon completion.

Pros: Instant EIN issuance, available 24/7. Cons: Only available to businesses with a principal office located in the U.S. or U.S. Territories.

If you choose to apply by fax:

1. Complete Form SS-4
   • Download and fill out the SS-4 form from the IRS website.
2. Fax the Form
   • Fax the completed form to the appropriate IRS fax number. Fax numbers are listed on the IRS website.
3. Receive Your EIN
   • If you include your fax number, the IRS will fax back your EIN within four business days.

Pros: Faster than mail, suitable for those without reliable internet access. Cons: Requires access to a fax machine, longer wait than online.

For those preferring traditional mail:

1. Complete Form SS-4
   • Download and fill out the SS-4 form from the IRS website.
2. Mail the Form
   • Send the completed form to the appropriate IRS address. Addresses are listed on the IRS website.
3. Wait for Response
   • You will receive your EIN by mail within four weeks.

Pros: Accessible for all applicants. Cons: Longest processing time, potential for lost mail.

If you already have an EIN but can’t remember it, you can look for it in previous tax documents, such as tax returns or payroll forms. You can also:

Check Your EIN Confirmation Letter: When you received your EIN, the IRS sent you a confirmation letter. This letter contains your EIN and other important information.

Look at Past Tax Returns: Your EIN will be on any tax returns you have filed for your business.

Contact the IRS: You can call the IRS Business & Specialty Tax Line to request your EIN. Be prepared to provide identifying information to verify your identity.

Once you obtain your Employer Identification Number, be sure to keep accurate and up-to-date records of your business transactions. This will help you meet your tax obligations and avoid problems with the IRS in the future.

Keep Accurate Records: Maintain accurate and up-to-date records of your business transactions. This will help you meet your tax obligations and avoid problems with the IRS.

Use Your EIN Consistently: Use your EIN on all tax-related documents and communications with the IRS.

Inform Relevant Parties: Provide your EIN to banks, lenders, and other entities that require it for business purposes.

Sales and use tax in Florida applies to various transactions involving tangible personal property, certain services, and rentals. This tax is typically collected by businesses from customers at the time of sale and remitted to the Florida Department of Revenue.

State Sales Tax Rate: The general state sales tax rate in Florida is 6%, but specific rates apply to certain transactions, such as mobile home sales (3%), vending machine receipts (4%), and commercial real estate rentals (4.5% or 2% from June 1, 2024).

Taxable Transactions: Most retail sales, admissions, rentals, and storage services are subject to sales tax unless specifically exempted.

Exemptions: Certain items like groceries, prescription drugs, and medical supplies are exempt from sales tax. Additionally, purchases for resale are generally exempt from sales tax if accompanied by a valid resale certificate.

Use tax is due on the use or consumption of taxable goods or services when sales tax was not collected at the time of purchase. Examples include:

• Purchasing a taxable item in Florida without paying sales tax requires payment of use tax.
• Using a tax-exempt item for personal use or consumption triggers use tax liability.
• Bringing a taxable item purchased outside Florida into the state without paying sales tax also requires payment of use tax.

Before starting a business in Florida, it’s important to determine if your business activities or products are subject to sales and use tax. If they are, you’ll need to register to collect sales tax or pay use tax. Here’s a partial list of business activities that require registration with the Florida Department of Revenue:

Retail Sales of Taxable Items: If you sell taxable goods directly to consumers, whether in-store or online, you’re required to collect and remit sales tax.

Repairs or Alterations of Tangible Personal Property:Businesses that provide repair or alteration services on tangible goods must collect sales tax on these services.

Rentals, Leases, or Licenses of Real Property: If you rent or lease commercial real estate spaces or mini-warehouses, you’re required to collect sales tax on these transactions.

Short-Term Accommodation Rentals: Rentals of short-term accommodations like hotel rooms, beach houses, vacation homes, or timeshare resorts are subject to sales tax.

Rentals or Leases of Tangible Personal Property: Renting out vehicles, machinery, equipment, or other tangible goods requires collecting sales tax on these rentals.

Admission Charges to Entertainment Venues: If your business charges admission to entertainment, sporting, or recreational venues, you must collect and remit sales tax on these admissions.

Manufacturing Goods for Retail Sale: Businesses that manufacture or produce goods for retail sale are subject to sales tax on these products.

Sale of Service Warranty Contracts: Selling service warranty contracts is considered a taxable service in Florida.

Operating Vending or Amusement Machines: Businesses operating vending machines or amusement machines must collect sales tax on the receipts from these machines.

Providing Taxable Services: Certain services such as crime investigation and protection services, non-residential cleaning services, or non-residential pest control services are subject to sales tax.

Out-of-State Businesses Selling in Florida: Out-of-state businesses making sales into Florida, with total sales exceeding $100,000 in the previous calendar year, must register and collect Florida sales tax.

Marketplace Providers Facilitating Remote Sales: Marketplace providers facilitating remote sales into Florida are required to collect and remit sales tax on behalf of third-party sellers.

Since July 1, 2021, Florida has implemented new regulations requiring businesses engaged in remote sales within the state to collect and remit sales and use tax electronically. This includes any applicable discretionary surtax on transactions exceeding $100,000 in the previous calendar year.

Remote sales encompass a variety of transactions, including:

• Online purchases
• Catalog mail-order transactions
• Cross-border purchases
• Out-of-state purchases from distributors or providers

Businesses, especially major online retailers, were already complying with these regulations prior to the enactment of Chapter 2021-2, Florida Laws.

Effective July 1, 2021, marketplace providers are now required to electronically register and collect sales and use tax on taxable sales facilitated for marketplace sellers delivering goods in Florida. Each business location within Florida must submit a separate electronic registration application, while out-of-state businesses can submit one application for all their locations.

For detailed guidance on remote sales tax requirements, consult Tax Information Publication (TIP) No. 21A01-03, “New Registration Requirement for Remote Sellers and Marketplace Providers and Facilitators.”

In Florida, businesses are required to register each location to collect, report, and pay sales tax. Registration can be completed online through the registration system or by submitting a paper Florida Business Tax Application (DR-1 form).

Effective July 1, 2021, Florida law mandates that businesses engaged in remote sales exceeding $100,000 in the previous calendar year must electronically collect and remit sales and use tax, including any discretionary surtax applicable to these transactions. Additionally, marketplace providers must register to electronically collect and remit sales and use tax on taxable sales facilitated for marketplace sellers delivering goods in Florida.

If you have an active registration certificate or reemployment tax account issued by the Department due to a previously filed Florida Business Tax Application (DR-1 form), use the Registered Business Add Location form (DR-1A) to add a new location in Florida. You would use this form to register:

• An additional business location or rental property in Florida
• A registered location that has moved from one Florida county to another
• For more information on submitting applications, refer to the Registering Your Business (DR-1N form).

Once registered, you will receive a Certificate of Registration (DR-11 form), an Annual Resale Certificate for Sales Tax (DR-13 form), and tax return forms. If registered for use tax only, you won’t receive a resale certificate. Display the Certificate of Registration prominently at your business location.

You must notify the Florida Department of Revenue if:

• Your business changes its legal entity or name
• Your postal address changes
• The address of your location changes within the same county
• You close or sell your business
• Your business becomes active and will sell or rent taxable properties or services

The quickest way to notify the Department of these changes is by updating your account online.

Submit a new registration using the online registration system or by completing a paper Florida Business Tax Application (DR-1 form) if:

• Your business undergoes a change in legal entity
• Ownership of your business changes

Ensuring timely updates and compliance with registration and account changes is essential for businesses operating in Florida. For detailed instructions and assistance, refer to the Florida Department of Revenue’s resources or consult with a tax professional.

The filing frequency is determined based on your annual sales tax collections:

• More than $1,000: Monthly filing requirement
• $501 – $1,000: Quarterly filing requirement
• $101 – $500: Semi-annual filing requirement
• $100 or less: Annual filing requirement

If you qualify for a different filing frequency based on your annual tax collections and wish to change your filing frequency, you can contact the Florida Department of Revenue’s Taxpayer Assistance at 850-488-6800, Monday through Friday, excluding holidays.

Ensuring that you file and pay sales and use tax according to the appropriate frequency is essential for compliance with Florida’s tax regulations. If you have questions about your specific filing requirements or need assistance, don’t hesitate to reach out to the Department of Revenue for guidance.