Does Michigan require an FEIN or EIN number for sole proprietors?

Hello everyone.

Well i went to my county clerks office and got my DBA name. I asked them about getting a sales tax id "I live in Michigan". They said i had to go to the Michigan Treasury website and do it there.

Well i went there and according to that i cannot request a Michigan sales tax id without first getting a FEIN number from the IRS?

I am a not ever going to hire employees or anything this is all going to be Ecomm. I am a sole proprietor is this accurate does Michigan require a FEIN or EIN number for sole proprietors like myself?

Sorry if this sounds like a silly question...

On a lighter note im pleased to report that i have sourced several vendors for my upcoming web store. They all responded fast to my emails and seem to want to make things happen. Now if i can just get this Michigan sales tax id ill be good to go to phase 3.

later all and thanks!

Hi Danny, congrats on securing some suppliers, half the battle won right there lol. In regards to the tax issue, that one is well out of my area of expertise, so I'll leave that for someone who knows more about Michigan tax laws than myself :)

Hi Danny,

Like fudjj, I'm no expert on Michigan Tax laws either but maybe this will help:

All businesses selling products or services that pay any kind of taxes and/or have employees must have a federal tax ID number (also known as an employer identification number or EIN). This is a number assigned solely to your business by the IRS and is used to identify your business to several federal agencies responsible for the regulation of business. If you plan on buying from wholesalers and/or importing merchandise, you will need to have a tax ID number before they will deal with you.

To set up a federal tax ID, contact your nearest Local IRS Field Office, or call the IRS Business and Specialty Tax Hotline at (800)-829-4933

The form you'll need to fill out is IRS From SS-4 and you can download it directly from the SBA Web site.

If your business does not have employees, the IRS recommends you label the top of the form SS-4 "For Identification Purposes Only."

To read more please visit the link below:

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Congratulations on landing three serious and committed suppliers. Wish you all the best with your store! :)

Hi dannyrevs,

From what I gathered, EIN may not be required but most small business advisors, and as you say the Michigan Treasury website, recommend that you apply for an EIN, (also called FEIN if it is a Federal Tax Id Number ) and use that number instead of the Social Security Number.

A Federal Tax Id Number is required for employers and corporations as well as partnerships, though sole proprietors may also get it.

If you google online there are a lot of services offering to get this number for you, do not fill out their forms, because there are also a lot of unsafe phishing sites. It will be smart to go directly to the IRS -
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In the IRS website, getting EIN online doesn't seem to be a daunting task.
It says "No need to file a Form SS-4. We ask you the questions and you give us the answers. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice."

Hope I got them right. :)

Kind regards,

Hi dannyrevs,

From what I gathered, EIN may not be required but most small business advisors, and as you say the Michigan Treasury website, recommend that you apply for an EIN, (also called FEIN if it is a Federal Tax Id Number ) and use that number instead of the Social Security Number.

A Federal Tax Id Number is required for employers and corporations as well as partnerships, though sole proprietors may also get it.

If you google online there are a lot of services offering to get this number for you, do not fill out their forms, because there are also a lot of unsafe phishing sites. It will be smart to go directly to the IRS -
Link hidden: Login to view

In the IRS website, getting EIN online doesn't seem to be a daunting task.
It says "No need to file a Form SS-4. We ask you the questions and you give us the answers. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice."

Hope I got them right. :)

Kind regards,

After some hardcore reading you are both correct. I went to the IRS site linked off the Michigan Treasury site and requested my FEIN. I was muscled into the FEIN by the Mi Treasury site it would not let me apply for sales tax permit unless i had one it was the first thing on the application it asked for.

Tonight after work i got on and finished up my application for the permit on the Michigan business one stop web site. It went smooth it says i have to wait 2 business days before i will know if i was approved.

I was confused by a few questions though. One asked when my tax year ended. Since it just rolled Aug i put July for the answer? Even though i prob wont sell one item for at least another 3 months. My site isnt up or under construction or anything yet.

Hope i didnt mess anything up. Cheers!

I was confused by a few questions though. One asked when my tax year ended. Since it just rolled Aug i put July for the answer?

There's info here about tax years - Link hidden: Login to view

:)

I too encountered the EIN number before I would be able to get a Sales Tax ID. My question is, I already have an EIN# because I run an in home daycare center. Do I need a seperate number to sell online or can I use the one I already have?

Thanks for any advice :)