by Dominic Ortiz | November 20, 2017 9:23 am
With the holidays coming up, tax season is just around the corner. While the idea of doing taxes is probably only enjoyable for the tax experts, the season can be extra hectic if you are filling as a business owner for the first time. Fortunately, much of the process is similar, though you will need to obtain an Employer Identification Number, or EIN, for your company. Here is more on an EIN, and its purposes within the IRS:
Who Needs an EIN?: Any business owners that hires employees usually needs an EIN. Even if you run a single person business, you may prefer having an EIN for your new company as an extra security measure against information thieves, or if you wish to obtain a line of credit specifically for your business. Getting an EIN keeps your free from all worries and you can stand and at the same time expand your business without any worries.
Getting an EIN: To obtain your EIN, you will need to fill out the EIN application, also known as Form SS-4, and submit that form to the Internal Revenue Service. The fastest way to complete the form is to do so online, but you also have the option to fax or mail the document. If you submit for the EIN online through a trusted source, you can get your answer back in a matter of days, while the fax or mail option will take several weeks. Today most of the people are opting for online method as it is easy and time saving. You can easily go ahead for EIN through online method and save your previous time for some extra work.
The IRS and the EIN: Once the IRS has processed your application and assigned you an EIN, this number will remain with the company, much like a Social Security Number for an individual. You will also be filling your company’s taxes with that EIN just like you would file personal taxes under your SSN. If you choose to stop operating your company, you can notify the IRS and they will make a note, but still keep that number on file. Therefore, it is extremely important to keep your company’s EIN in a secure place.
The good news about obtaining an EIN is that the application is a one-time process. For best results, try to submit the SS-4 well before the start of tax season. By doing so online, you will obtain the fastest results. Always try to be on the safe side and do not ignore such things so that you can do your business without any worries. Obtaining an EIN is important and earlier you apply for it, better it is for you.
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