how to start llc how to start llc? On 2/22/2012 5:19 AM starting tomahawk drilling company. a Drilling natural resources Consulting     Want to protect my house and other personal assets Services drilling consultation with 1 employees in Grapevine, TX  , 76051, San Antonio Tarrant County I do not want to pay excessive taxes because I am self employed and I am subject to self employment taxes. Is there a way to avoid paying it.             v - Employers need an Federal Tax Id Number and a State Tax Id Number.  In addition, your business needs a business tax registration and a fictitious business name registration.  In lieu of registering a ficitious business name, You could become an S  or C corporation or set up an LLC. If you create an S corporation you will not pay excessive self employment taxes because instead of salary you can pay yourself in dividents. Keep in mind that you still need to pay yourself a reasonable salary as defined by the IRS.           Click Here to Submit It. Frequently Asked Questions: Q: I started a business as a partnership but never really took off. Do I still need to file an IRS return? A: If you filed for a a partnership but never started a business, you need to file a tax return anyway and just fill out the gross business income as zero. Otherwise the IRS will charge you with a penalty for non filing the return. Q: What if the independent contractor is an LLC or corporation, do I still need to send them a 1099 form? A: To be safe, yes, send everyone that does any work for you for more than $600 a 1099 form. Q: What is the threshhold before I am required to file a business tax return? Even if you made $0 dollars, you still need to file a business tax return. Q: What is an EIN Used For? A: You can use an EIN to pay employment taxes withheld and use it as a corporation, LLC or business tax ID number as a sole proprietor or partnership or you can combine any of the previous uses of an EIN. TX Tax ID Number. TX Tax ID.