Question: Ubi
12/16/2024 5:27 AM
Lakewood,
WA
WA.
Services
with
0
Staff. .
DiByronsch
I am about to open a new
World Wide Busy Bee Auto Maintenance & RepairCo.
What is the difference between a tax ID and a sales tax ID?
Services
What tax ID do I need to buy wholesale?
Federal Tax ID Number vs. EIN.
Lakewood Pierce County
, WA
98439.
|
Mobile Auto Maintenance & Repair: A Quick Industry Snapshot The mobile auto maintenance and repair industry is cruising at high speed, with revenues projected to hit $12 billion annually in the U.S. alone. Why? Convenience is king. Customers love the idea of skipping the garage trip and having their cars serviced in their own driveways. This type of business is perfect for routine maintenance like oil changes, tune-ups, and detailing—but with a mobile twist. To get started, you’ll need more than just mechanical skills; a proper business setup is key. And yes, you’ll also need some upfront capital. Expect to spend around $5,000–$10,000 to get rolling. This covers basic equipment like a jack, mechanic tools, detailing supplies, a mobile compressor, and a reliable vehicle to carry it all. Oh, and don’t forget your shop-on-wheels should look professional—it’s basically your mobile storefront!
Why an LLC Might Be the Right Fit An LLC (Limited Liability Company) is a popular choice for mobile businesses like yours. Why? It protects your personal assets from business liabilities. For instance, if there’s an accident during a repair or a legal claim, only your business assets are at risk, not your house, car, or that vintage guitar collection. Plus, an LLC gives you flexibility in how you’re taxed. You can go with a default pass-through taxation setup, where profits (or losses) are reported on your personal tax return, or you can elect to be taxed as an S Corporation for potential tax savings. If you plan to use a business name other than your own name (e.g., “Driveway Auto Wizards”), you’ll likely need to register that name as part of setting up your LLC. This is important for branding and ensures no one else can operate under your chosen name.
Do You Need a Seller's Permit? If you plan on selling auto parts, fluids, or detailing products directly to customers, you’ll need a seller's permit. Why? It allows you to collect and remit sales tax on taxable goods. For example: - Say a customer needs a new air filter during their oil change. You buy the part wholesale, mark it up, and sell it to the customer. A seller’s permit ensures you’re legally collecting sales tax on that transaction. - On the flip side, if you’re strictly providing services (like oil changes or detailing), a seller’s permit may not be necessary, as services are often not taxable.
What About an EIN? An EIN (Employer Identification Number) is like a Social Security number for your business. It’s issued by the federal government and is used for tax purposes. You’ll need one if:
You have employees.
You set up an LLC, S Corp, or other formal business entity.
You want to separate your business finances from your personal ones (which is a good idea!). |
| |
Even if you’re a one-person operation, an EIN makes opening a business bank account easier and adds legitimacy to your business.
Business Licenses & Special Permits Here’s what you might need to get your mobile auto repair business running:
General Business License: This is your basic "license to operate." It’s a must-have for most businesses.
Special Permits: Some areas require special permits for mobile businesses, especially if you’ll be working on vehicles outdoors or in residential areas.
Environmental Permits: Since you’ll be handling fluids like oil and coolant, you may need permits to properly dispose of waste materials.
Auto Repair/Mechanic License: Some states require mechanics to have specific certifications or licenses to operate legally. Check whether your services fall under this requirement.
Do You Need an S Corp? An S Corporation is another option for your business structure. It’s similar to an LLC in terms of liability protection, but it offers different tax benefits. For example, with an S Corp, you can pay yourself a salary and take additional profits as dividends, which can reduce self-employment taxes. However, S Corps have stricter rules and require more paperwork. If simplicity is what you’re after, an LLC might be the better route.
Quick Checklist for Starting Your Business Here’s a mini roadmap to get your mobile auto repair business up and running:
Choose a business structure (LLC, S Corp, etc.)
Register your business name (if using one)
Obtain an EIN
Apply for a general business license
Get any special permits required for mobile or auto repair businesses
Check if you need a seller's permit for selling parts
Invest in your tools, equipment, and a reliable vehicle
Final Thoughts Starting a mobile auto maintenance and repair business can be a rewarding venture, especially with the rising demand for on-site services. With the right setup—legally and operationally—you’ll be ready to hit the road and turn wrenches (and profits) in no time.
|
| |
Mobile auto maintenance and repair at customer residence, performing routine maintenance and detailing.
Business Structure and Core Requirements
LLC or S-Corp registration to protect personal assets and establish business structure
EIN (Employer Identification Number) - functions as a business tax ID for hiring employees, opening bank accounts, and filing tax returns
DBA (Doing Business As) registration if operating under a name different from the legal business name
Sales and Operations Permits
Seller's Permit (Resale Certificate) - required to purchase wholesale items tax-free for resale and collect sales tax on retail transactions
Environmental/Hazardous Materials permit for handling automotive fluids, chemicals, and waste products
Mobile Business permit specific to conducting business at customer locations
Industry-Specific Requirements
Automotive Repair license demonstrating qualifications to perform vehicle repairs
EPA certification for handling refrigerants if performing A/C services
Vehicle-mounted equipment permits if using specialized mobile service vehicles
|
|
|
|
|
Quick Checklist for Starting Your Business Here’s a mini roadmap to get your mobile auto repair business up and running:
Choose a business structure (LLC, S Corp, etc.)
Register your business name (if using one)
Obtain an EIN
Apply for a general business license
Get any special permits required for mobile or auto repair businesses
Check if you need a seller's permit for selling parts
Invest in your tools, equipment, and a reliable vehicle
Final Thoughts Starting a mobile auto maintenance and repair business can be a rewarding venture, especially with the rising demand for on-site services. With the right setup—legally and operationally—you’ll be ready to hit the road and turn wrenches (and profits) in no time.
|
Here is what tax ids you are legally are required to get for in
Lakewood, WA.
IMPORTANT:
Requirments below include Web based, Online, Websites, Home or eBay Businesses)
Answer:
Here is a list of tax number ids you need to start your own Lakewood small company.
99% of new businesses are required to get a(n) , Lakewood
business tax id registration (business license).
Businesses with an trade firm name other than the owner's legal name are required to get a(n) Pierce County DBA ( doing business as ) fictitious business name.
You may also need a tax id called a resale tax ID or seller's license if you selling touchable items. (A.K.A WAseller's permit, state id, wholesale, resale, reseller certificate).
In addition you will need a federal and a state EIN if you will hire employees.
I.e., a WA Federal Tax Id Number and a(n) WA State Employer Tax Number
Instead of filing a fictitious business name DBA Filing in
Lakewood, Incorporate in WA or form a(n) WA LLC
Here are the tax IDs that businesses need: 1. an IRS tax ID number. 2. A state resale tax ID number an employer tax ID number and 3. A tax registration ID number.
New businessess whether home or other types will need a general tax registration that could be a business permit and or license. Sole proprietors just need that plus perhaps a registration of a business name certificate if in fact the business is using an assumed business name. E.g. if the business is called "Superior Medical Billing" it will need to file a DBA. Other than that employer sole owners will need both a federal ein and a state ein and if selling any type of widgets such as items on eBay or Etsy will need a state reseller number also called a seller ID or resale number.
In addition if the new business whether home business online or commercial location it will need to file a DBA doing business as certificate if in fact is doing business and using a trade name.
Corporations and LLCs need the business tax registration license and a federal tax ID number.
Not Sure What Tax ID You Need?
Take Our Free Short Quiz to Find Out Now!
Take The Quiz Now!
How It Works
It's Free when you also order an incorporation,
llc or dba from us. Apply for your number today.
Learn how to apply for your tax number yourself
safely and free. Get your tax number today.
Click To Get It Now
Obtain Your Tax IDs Online Now!
Click To Get It Now
Here is a list of tax number ids you need to start your own Lakewood small company.
99% of new businesses are required to get a(n) , Lakewood
business tax id registration (business license).
Businesses with an trade firm name other than the owner's legal name are required to get a(n) Pierce County DBA ( doing business as ) fictitious business name.
You may also need a tax id called a resale tax ID or seller's license if you selling touchable items. (A.K.A WAseller's permit, state id, wholesale, resale, reseller certificate).
In addition you will need a federal and a state EIN if you will hire employees.
I.e., a WA Federal Tax Id Number and a(n) WA State Employer Tax Number
Instead of filing a fictitious business name DBA Filing in
Lakewood, Incorporate in WA or form a(n) WA LLC
You have a choice to register a fictitious business name or form an LLC or incorporate.
Finally if you will have more than one owner you will need to obtain a federal tax id number to indentify the partnership.
If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.
FIRST STEP: Make sure you get
related tools such as specific equipment .
SECOND STEP: I am planning to hire employees and want a stategy to reduce small business taxes employment taxes. find where your Lakewood
business location (you home can be a business location).
THIRD STEP: Obtain tax ID number(s) and licenses. Here is the minimum registrations you need:
Perhaps the sole way of avoiding lawsuits and creditors after your assets such as your home and automobile is to form an LLC or incorporate.
Some tips for reducing your self employment tax among others is to form an S corporation. Then pay yourself in dividents instead of salary because salary is subject to tax but dividents are not.
If you have a partner you will need to register the company name and obtain a federal ID.
You need a sales tax id because your service includes parts and or materials you need to use to provide your service which are taxable.
Any businesses that sell prepared food need a seller's sales tax id number license.
.
|
|
|
Not Sure What Tax ID You Need?
Take Our Free Short Quiz to Find Out Now!
Take The Quiz Now!
Company: What is the tax ID total cost?.
| |