Why you need and how to obtain a federal employer identification number (EIN)

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Why you need and how to obtain a federal employer identification number (EIN)

If you own and operate a business, you may need to obtain a federal identification number (EIN) from the employer, and you should think about it, even if it is not necessary. Commonly known as a federal tax identification number, EIN is the social security number for your business. Just as your social security number is used to identify you as a unique entity by the state, financial institutions and other institutions, the employer identification number is used to identify your business as a unique entity by government agencies, financial, fiscal and regulatory. Obtaining and using an EIN to identify your business with the Internal Revenue Service and various federal agencies that regulate business is a reasonable way to separate and delineate your personal and business obligations and obligations.

EIN issued by the IRS as a tax identification number, the EIN is a unique identifier assigned and linked to the individual owner of a particular company. The EINs are used by employers, individual entrepreneurs, corporations, associations, non-profit organizations, government agencies and other business entities.

apply for a tax id (ein)

Continuous business identity

EIN provides the added benefit of creating a continuous business identity, even if the name, scope or location of your business changes. This allows business owners to benefit from the fiscal, financial or regulatory benefits developed in previous years. As long as the ownership of the company and the operating status do not change, your EIN will follow your company through the inevitable cosmetic and management changes that accompany the definition and development of the company. You can use the same EIN, even if you change the name or address of your company or add additional locations.

Despite the name, you do not have to be an employer to obtain an employer identification number. You must get an EIN if your company operates as a corporation or partnership, or if you offer products or services subject to taxes, collect sales tax, have employees, withhold income taxes, have a Keogh plan, or file any type of tax return. Federal taxes. However, the owner of a business can requests an EIN, even if it is not mandatory, and generally finds it in their own interest. EIN is required for income tax forms, labor tax reports, social security records and tax payments, as well as for applying for a business license. Most banks also require an EIN to open a commercial account.

Simple and painless

The application procedure is simple and painless. Although you can apply for a tax id (ein) by contacting your local IRS office and completing form SS-4, the online application is quick and easy. As soon as you complete the online application form, you will receive your EIN and you can start using it immediately.