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I started a sole proprietorship 1 year ago and created a tax id. Well the business never took off because of unexpected surprises. About 5 weeks ago I got around to officially closing down the business with the county clerk. However, I misplaced the tax id (like a moron) and the IRS agent says I must retrieve it so they can close it out for me. What repercussions tax wise should I expect to face and what is the best way to retrieve that tax id?

 

Also, when doing l/o is it advisable to seek a cpa first(even though I can not afford one yet) to creat the corporation that suits my needs? I extend that same question for CA's.

 

thx in advance,

jacin

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I am not quite sure how to retrieve a tax ID. Did you call your local IRS field office and ask them how to do it? Did you open a bank account in your business name? If so, the bank will have a record of the ID. Did you use your SSN as your ID? Sole proprietorships do not have to have a separate tax ID, so thought I would ask.

 

Repercussions? I can't think of any if you never have income in your business name, and have essentially abandoned the business, you never have to file a tax return for your business.

 

I suppose it is advisable to seek professional assistance whenever you need it. If you are just starting out, why not wait until you have a deal under your belt first, then talk about entity structuring. You may find out that this business does not suit you, and there is no need to spend time, money, and energy establishing and maintaining a corporation.

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I am not quite sure how to retrieve a tax ID. Did you call your local IRS field office and ask them how to do it? Did you open a bank account in your business name? If so, the bank will have a record of the ID. Did you use your SSN as your ID? Sole proprietorships do not have to have a separate tax ID, so thought I would ask.

 

 

They do not have separate tax ids at first, but it is optional to aquire one. I did just that, put it into my quickbooks system, then the computer went kaput. No other paper trail for it that I can see. Ill ask that agent again about what to do.

 

suppose it is advisable to seek professional assistance whenever you need it. If you are just starting out, why not wait until you have a deal under your belt first, then talk about entity structuring. You may find out that this business does not suit you, and there is no need to spend time, money, and energy establishing and maintaining a corporation.

 

God I hope not, I been reading for almost 6 months now on various systems and finally found one thats affordable for me. I am so hyped right now. Not to mentions BEV's posts really make me wonder why I am sitting here typing when I should be out their doing deals!

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