Many people are misinformed about Tax ID and many do not know where and when to use the Tax ID. Many also do not know if they should get the Tax ID or not and many do not know how to apply for it or the process that the application require. If you belong to this category of people, then you have come to the right source of information. irs-taxid-numbers.com is the right place to get all the details you can ever need about the Tax ID.
Tax ID can also be referred to the EIN, which is the acronym for Employers Identification Number. The EIN has so many benefits and we will show you next when you should go for the number.
Who should get the EIN?
Check below for a list of those who need the EIN:
- You will need the EIN if you have a business organization that has employees, even if you are a sole proprietor.
- You will also need the EIN if you are a Corporation or any organization that is taxed as a corporation
- You will equally need it if your business is a multi-members LLC
- Did you inherit any business from a parent or anyone else? You will also need the EIN; same goes for anyone that purchased a business.
- Those who have a solo 401 (k) retirement plan or a Keogh Plan will also need the EIN.
- Those who file for bankruptcy will also need to apply for the EIN.
The registration process for the EIN is very easy and you can complete the entire process after just few minutes. What is more, you will not have to pay a dime to register for the EIN.
Bear in mind that you will never have to worry about applying for the EIN from irs-taxid-numbers.com if you do not fall into any of the categories highlighted above. If you are a freelancer or any sole proprietor, you will rarely need an EIN. Even if you do not technically need an EIN, you will still enjoy several benefits when you register for an EIN.
Some benefits to consider
As stated above, you may not necessarily need to get the EIN for your business. However, getting it can attract several benefits for the business. Obtaining the EIN number, even if it is not required by the law for your type of business can earn you a reduction in IRS audit and also home office deductions for your business.
Do you desire to enjoy tax benefits from the ownership and running of an in-house business, like deducting a room as an office? Then you will find the EIN to be very important since it will help you to make the case to be more efficient and better.
There is also no better way to prevent identity theft than with the help of the EIN. In this case, the EIN can help in separating your business finances from your personal finances. You will never have to give your vendors or clients your SSN anymore once you have your EIN; you can now give them your EIN in place of the SSN, which will help to further prevent identity theft.