Question 1

What the difference between an LLC and a corporation?

Accepted Answer

There are many differences between an LLC and a corporation, both large and small. One of the most significant differences is the ownership structure. An LLC is owned by one or more individuals, while a corporation is owned by shareholders.

Question 2

How much does it cost to incorporate a business?

Accepted Answer

SmartCloud Tax offers our LLC formation service at no cost; however, your Washington State will charge a tax-deductible fee, which varies by license type. Our fees apply only to value-added business services, available at different price points based on your selected package.

Question 3

What type of business entity should I start?

Accepted Answer

We generally recommend forming an LLC due to its numerous advantages for small business entrepreneurs. After forming an LLC, you have 75 days to consider choosing a different business structure, such as an S corporation.

Question 4

How long does it take to have my business registered with the state?

Accepted Answer

Most states process business registrations within 14 business days, although this timeframe can vary based on their current workload.

Once your filing has been submitted, your SmartCloud team will notify you through the message center with an update.

Question 5

When will I receive my EIN Number?

Accepted Answer

Once approval is received from the state, we apply for the EIN number, and we will deliver all of your documents in your SmartCloud Tax Client Portal. Approval is normally completed within 3 business days.

Question 6

What are the next steps after I have my business paperwork?

Accepted Answer

With the documents we provide you will be able to open a business bank account as long as you have the state correspondence, EIN letter and Operating Agreement (available as an add-on purchase).

Please note that SmartCloud Tax & Accounting is not involved in licensing and permits associated with business registration. To continue with those it would be best to contact your state’s Secretary of State or ask your SmartCloud Team for more information.

Question 7

How do I elect to be an S corp?

Accepted Answer

We will supply you with a pre-filled IRS Form 2553, containing all your necessary details. Just print, sign, and send the form to the IRS to elect S corporation tax status.

Question 8

How do I communicate with the team handling my formation/dissolution?

Accepted Answer

Send messages to your team directly through the message center in your SmartCloud Tax Client Portal. This is your go-to place for all inquiries and communications.

Question 9

How long does it take to get an EIN after filing?

Accepted Answer

You can apply online to obtain an EIN immediately as long as the IRS can verify your Social Security number. Other methods, including fax and mail, will take days or weeks to process. Foreign owners without a Social Security number must apply via fax or mail.

Question 10

Do I need an EIN to open a business bank account?

Accepted Answer

Most banks require an EIN or Federal Tax Identification Number to open a business bank account.

Question 11

Does an EIN expire?

Accepted Answer

EINs never expire. Once an EIN is assigned to your business, it remains unique and will not be reissued. If you lose or forget your EIN, you can contact the IRS to retrieve it from their database.

Question 12

Do I need an EIN to file taxes?

Accepted Answer

An EIN (or Federal Tax ID) is similar to a Social Security number for your business entity, used by the IRS for tax identification purposes. You will need your EIN for various business-related activities, including paying federal taxes.

Question 13

Do I need an EIN for my small business?

Accepted Answer

Without an EIN, your business will face significant limitations. If you plan to have employees, operate a corporation or partnership, or file Employment, Excise, or ATF returns, an EIN is essential.

EIN Tax ID Online Application

What's an Employee Identification Number (EIN)?

Bank Requirement

Easy and Quick

Employer Requirement

Who needs an EIN?
Your business needs an EIN if you...