Another name for Tax ID is EIN. EIN is the acronym for Employer Identification Number. It is considered by most people as a Social Security Number (SSN) and it is required for a business. It is expected of most businesses to obtain an EIN as this helps the government to identify the particular business organization for tax purpose. One of the best places to visit for your EIN is irs-taxid-numbers.com.
Once you have an EIN, you can easily open a bank account for your business or open a line of credit. It will also give you the freedom to hire employees and to also apply for the required license for your business.
When you need EIN
EIN is required by a non-profit organization, a taxable entity and also a business organization. You will need to obtain an EIN if you fall within the categories highlighted below:
- If you need to hire employees for your business
- If you need to operate your business as a Partnership or as a Corporation
- If you file tax returns on Firearms, Tobacco, Excise or Alcohol and Employment
- If you have any Keogh Plan
You will also need to get a Tax ID if you are involved one way or the other with the organizations highlighted below:
- Plan Administrators
- Farmers’ cooperatives
- Non-profit organizations
- Real Estate mortgage investment conduits
- Trusts (except certain grantor-owned revocable trusts)
Other reasons to obtain EIN
It is still recommended that you go for EIN even if you do not fall in any of the categories highlighted below. The EIN can be used to protect your details. The EIN on your license and business application can function in the place of SSN. Bear in mind also that the EIN is required by many local and state permits. You can also need the EIN from irs-taxid-numbers.com for opening a business bank account. You can equally use the EIN for establishing a business credit history. When you want to hire employees, the EIN can help to reduce delay.
If you are confused about the right entity type that you can select, you can use the highlights below to make the right choice:
- Personal service corporation
- Non—Profit Organization
- Church organization
- Limited Liability Company (LLC)
- Sole Proprietor/Individual
Easy application process
The application process for the EIN is very easy and straightforward. All you have to do is to fill the short form available on this platform. Provide your first name, middle name and last night. You should also Social Security Number and your Title in the organization, as well as, your Trade Name.
Also, you should provide detailed information about your Business Address without providing PO Boxes. Provide your full address, city and state in the United States. You should also provide your Zip Code while filling the form. State if you will like to receive mail at a different address. The entire process of filling the form will never take more than a few minutes.