Business Licensing Requirements
The Golf cart rental business licensing requirements are variable by location. A combination of both federal and state authorities’ licenses and permits. The charges and requirements depend on your business, location, and government regulations. Due to your company and the licensing or permitting agency, the conditions and costs are subjective.
Register for taxes
You will need to register for a mix of state and federal taxes before you can open for business. An Employer Identification Number, aka EIN, Federal Employer Identification Number, aka (FEIN), The Federal Tax Identification Number (FTIN) is like a Social Securit (SSN) for your business. Choose Location the EIN allows the Internal Revenue Service (IRS) to identify and track the tax reporting of a company. You may find your EIN by searching your SOS website.
Before getting the Employer ID Number, make sure that you are a company such as a Limited Liability Company (LLC) company, partnership, company (S-Corp or C-Corp), etc. You are to provide your business formation date when you get your unique 9-digit EIN. Name your business in advance to ensure that your business name is available.
- S Corporation
Opting for an S corporation tax structure, the entity will need to file corporate income taxes on your tax return through Form the 1120S (includes expenses and losses) and Form K-1 for individual shareholders (corporation’s income, deductions, and credits). Hence an S corp requires an EIN.
- C Corporation
Selecting a C corporation, newco, or new entity business is in and of itself separate. The C Corporation pays a flat tax at the corporate level and is taxed again on the shareholder end through Form 1099 – DIV; hence a corporation requires getting an EIN. A C-Corp will file their federal tax return by using Form 1120.