Corporate and Business Law > FAQ about Taxes
 

What is a Federal Employer Identification Number?

A Federal Tax Identification Number is a number assigned to a corporation or L.L.C. by the Federal Government for purposes of taxation.

Is tax ID number essential for all corporations?

Yes. This number is required to fill out payroll reports, pay taxes, open a business checking account, etc.

Can I avoid tax in my Home State by incorporating in Delaware?

No. Corporations are created by each state under its own rules and laws. If a foreign corporation wants to do business in another state, it must first qualify in that state. Hence it becomes subject to all the laws and taxes of that state.