Even if the business has only one employee, it is required to obtain Tax ID in Ohio so that IRs can track the business and ensure that it pays the payroll tax. Even if you have not yet hired an employee, it is suggested to apply for EIN because it is very likely that your business will grow in the future and you will need additional manpower to help you run the business.
Meanwhile, let us hear the story of Bill Adler the owner of metal parts maker Stripmatic Products. Last year, Adler was invited to bid on a contract that will make commercial sausage stuffers. The company wanted to replace its Chinese supplier and is looking for a bidder that can match China’s price. Adler believed that his company can win the bid.
However, while Adler was preparing his proposal, US President Trump announced the steel tariffs. This resulted into an increase in price of Stripmatic’s main raw material. In short, Adler lost the bid because his costs were too high. Adler is optimistic that the ugly scenario is short term; otherwise, he has to find another way to make a living.
The plight of Stripmatic is one example of the hidden costs of the America First protectionism. As the president seeks to unwind globalization, his logic of protectionism is operating in reverse. On the other hand, there were gains in protectionism if you will look at new solar plants and reopened steel mills. Protectionism might backfire on the US and undermine the president’s goal of reclaiming manufacturing from China.
US steel producers will benefit if metal imports were discouraged but it can lead to a surplus of steel markets outside the US. This means lower prices for the US competitors. An increase in steel in prices will force Adler to reduce employee bonuses and profit sharing checks.
However, threat of tariffs does not affect all types of businesses in Ohio. If you planning to be an entrepreneur, make sure to apply for Tax ID in Ohio to facilitate business licenses, business bank accounts, financing and loans. Aside from the IRS website, there are also 3rd party designees that can provide assistance.