Are you familiar with the term Employment Identification Number (EIN)? This is number provided to business for tax purposes by the Internal Revenue Service (IRS). And once the number is issued to a business, that will be the way the federal government recognizes that business for any type of tax documents. check it out
In short, just as a Social Security Number works to identify an individual, an EIN does the same for a business. And as such, every business within the United States needs to possess an Employer Identification Number. There is an exception for the need to obtain an EIN which would be a sole proprietorship with no employees. Below we will discuss some tips for obtaining your EIN.
3 Great Tips For Receiving An EIN
1. Changes within your business can require you to file for a new EIN. You will need to obtain an Employer Identification Number if you restructure a business. For example, changing from a sole proprietorship to a corporation would require a new Employer Identification Number. Even though you may already have an EIN, you will still need to obtain a new EIN due to the change in corporation type.
2. There are a tremendous amount of task associated with opening a new business. If you are unfamiliar with the process of obtaining an EIN, it can be a daunting idea. No need to worry, though, as you can easily obtain an EIN for your business. In fact, an EIN service can easily handle this task for you quickly and easily. Then you will be able to focus on other business needs since you have a specialized service handling this issue..
3. To apply for your number, there is an online application process available. You can quickly fill out your information and be on your way to getting an EIN fast. In less than twenty minutes, you can have your application completed and sent to the IRS.
Many people are unaware of the regulations regarding an EIN. Not for profit organizations, community sports teams, churches, volunteer groups, estates, and scholarship funds are examples of the non-business groups that will be required to have such a number. Individuals may also be required to obtain an EIN. For instance, if you currently employ one or more babysitters, housekeepers, drivers, or any other in home employee you will need an EIN.