Do you need a TAX Id number to start a hosting website/business?

Do you need a TAX Id number to start a hosting website/business?
Nope.

Basically you would want a tax ID if you want to incorporate and/or have employees. The IRS guide is here (http://www.irs.gov/businesses/small/article/0,,id=97872,00.html).

What about remote employees like Support and Sales people?

Okay,

if there in a company, not your problem just another invoice, if they are working direct to you they require a Business regristration and they handle all taxes them selfs as long as your record how much you pay them.

So pretty much I don't need a tax ID number?

Once again, I doubt any of us work for the IRS but I'm gonna say that you probably don't. :)

So I am guessing I don't need one.

So I am guessing I don't need one.I wouldn't recommend guessing in business. I would recommend asking an accountant. Besides, you'll eventually want to get incorporated/LLC/what have you so you are financially separate from the company and then you'll need that to get business accounts and such.

If you are not registering your company then no need of tax id.

You can easily use your own tax id in certain cases.

Great answers. I myself recommend you talk with a CPA, as just like someone said, business is one thing you do not guess about, and personally something I would not ask for advice from in a forum, unless it's just general business talk, and not something that could hurt my business with IRS issues, or anything else serious.

Well do you need to file Taxes?

Of course you need to file taxes, but some illegal host out there do not, and if your not a huge web hosting company, you are probably not going to receive too much attention from the IRS anyway, but I still rather go legitimate with any business I start.

Hey Rusty,

I don't mean to echo what others have said but the only advice regarding tax/income concerns you should take from a public forum is to consult an accountant in your city. :)

Cheers,
Chris

As you start/grow you will work with more and more vendors. Most vendors require some sort of TAX ID. Whether you want to give them your SSN is your own business, but I would much rather prefer giving them an EIN. We incorporated for liability reasons, employement opportunities, and to make our personal lives seperate from our business lives. I find it much easier being registered with a valid EIN tax id.