If you’re setting up a new business, a smart move to make is to form a business entity to protect you from upcoming lawsuits. If you’re taking this step, you need to secure a Colorado tax ID application for the entity.
It can never be denied that doing a business by yourself will pose some legal risks you can possibly encounter. You need to watch the news or read the newspaper for all types of scary judgements and lawsuits. You may remember how McDonalds paid three million dollars to the women who found their coffee too hot. If this doesn’t scare you, then you’re afraid of nothing else.
Fortunately, the law provides you some weaponries to battle potential lawsuits. The weaponries are in the form of business entities that protect you from personal liabilities for the debts of your business. These debts may include lawsuit judgements.
If you have a business, you need a Colorado tax ID application for the filing of your taxes. The two most common business entities used for this purpose are the limited liability company and the corporation. Although the entities are unique, they help shield your personal assets over your business. This can happen if the entities are treated as if they are one unique person. If the entities get in trouble, your personal assets are safe and not liable.
So how do you get a Colorado tax ID application to ensure your personal assets are protected? The first step is to download the SS-4 form from the IRS website. You need to accomplish the form with relevant information about yourself. You can mail, fax or send the document through email. Depending on how you sent it, you can instantly get a tax ID number from there. Only include accurate information so you won’t get in trouble with the IRS.
So if you’re planning a small business with some entities, you need to get your Colorado tax ID application from the IRS. Ensure you make one for yourself as this will be your permanent ID number for a lifetime. Perhaps, you can hire an accountant to do this task for you. It may cost a couple of bucks, but at least, you’ve done something right.