Do I Need a Employer Tax Number to Start a Pet Sitting Business in Pennsylvania?
A pet sitter looks after people's pets while their owners are away on vacation. Pet sitters walk dogs, feed household animals, clean up when needed and dispense medications to pets. If you are thinking of starting a pet sitting business in Pennsylvania, you may need to get an Employer Tax Number, also known as an Employer Identification Number.
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Definition of an EIN
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An Employer ID Number is a tax identification number issued to businesses by the Internal Revenue Service. The EIN has the format xx-xxxxxxx and is a unique number that identifies a business. The EIN is used to report income from your pet sitting business to the IRS on your federal tax return; it can also be used for non-tax purposes like getting business credit or opening a business checking account. In general, businesses need an EIN.
When You Need an EIN
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If your pet sitting business has employees, you need an EIN. For example, if you have an employee who helps you with bookkeeping, walks dogs or otherwise works for you, you need to get an EIN so you can report your employee's earnings to the IRS. If you run your pet sitting business as a corporation or as a partnership, you need an EIN. In addition, if you withhold taxes on income paid to a non-resident alien, you also need to get an EIN.
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When You Don't Need an EIN
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In general, you probably don't need an EIN for your pet sitting business. The typical pet sitting business in a one-person operation -- you -- with no employees. Unless you meet any of the conditions described above, you don't need an EIN. The State of Pennsylvania has no requirements for getting an EIN above and beyond those laid down by the IRS.
Other Considerations
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Although you don't need an EIN to start a pet sitting business in Pennsylvania, you do have to register with the state of Pennsylvania for state taxes. Pennsylvania businesses are required to apply for sales and use tax and a variety of other taxes, permits and licenses. Which specific items you have to register for depends upon the structure of your pet sitting business and the types of services you'll be providing. For help with figuring out how to register your business, call the Entrepreneurial Assistance line at 800-280-3801.
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References
- Photo Credit dog walking man image by Tammy Mobley from Fotolia.com
