Are you planning to start a new business in Texas? Are you aware of the requirements necessary for starting a business? Aside from the usual licenses and permits, there is also a need for Tax ID Application to obtain a Tax ID. The Tax ID number is not only useful for taxation purposes; it is a requirement of most banks when opening a business checking account.
Erives Enterprises is a trucking company in El Paso. Last year was the best in terms of revenue because all its businesses boomed. The company was able to hire more workers and provide them with raises. The company also had good business relationships with factories across the Rio Grande in spite of the international border.
El Paso and Ciudad Juarez, its Mexican neighbor have established themselves as single interdependent economy since 1994 when the North American Free Trade Agreement (NAFTA) lowered the trade barriers between the United States and Mexico including China.
The trucks owned by Erives as well as those from other companies are free to travel with billions worth of merchandise across the border. If you will trace the jobs in El Paso, one in four of them are based in El Juarez. However, with the negotiations to update NAFTA, businesses on both sides of the border are worried because President Trump might follow through with the threat to pull out the US from the treaty. If this happens, it will undermine the free flow of goods and services that was sustained for more than 20 years.
Erives is only one of the companies that have prospered from the trade with Mexico. The end of NAFTA will severely affect thousands of businesses and will disrupt supply chains. Workers will be laid off and many companies in El Paso might declare bankruptcy. Economic growth of El Paso will be seriously threatened.
Obtaining a Tax ID is one of the requirements for those who want to start a business in Texas as well as other states in the US. There are businesses that are exempt from Tax ID Application because they do not have employees but they can also apply for the Tax ID for identification purposes.