money lending singapore

5 steps to get a business Tax ID number

5 steps to get a business Tax ID number

If you are running a business that is prospering well, the IRS may necessitate that you to procure an Employee Identification Number (EIN). This is also known as your business tax ID number. Every EIN is distinct in the same way the usual Social Security number of US citizens is. This number enables the IRS to distinguish your business and allow you to provide IRS on all of your tax documents and similar forms. Luckily, the IRS has made it very simple to get your hands on a new EIN. Here is how to get federal tax id:

Do you need an EIN?

So do you need an EIN? To answer this question, you need to consider various factors about your business. If you have multiple workers and you withhold taxes on their wages and salaries or you operate the business as a partnership or corporation, then the IRS will require you to procure an EIN number. EIN number is also required for estates, non-profit organizations and trusts. Nonetheless, if you are operating as a sole proprietorship, an EIN number is not required, but you can still obtain it if you wish to.

Appling for an EIN

So you know that you need an EIN, now the next question is how to get a tax id number? The procedure for this is very simple. You can apply for your EIN by phone, mail or fax. It is preferred by the IRS that you submit your application through online means. This will allow you to receive your EIN immediately after you have completed the application process. To get started, simply visit the IRS website and access the EIN Assistant page. Once on the EIN Assistant page just click on “Begin Application” and follow the subsequent steps.

The five short questions

You are required to answer five short questions. The first question is about selecting the type of EIN you need. The second relates to your reasons for applying for an EIN. The online questionnaire then asks for your name and your Social Security number and this concludes your application.

Saving the document with your EIN

The system will promptly generate and EIN number once you complete all sections of the application. You can start using it immediately. You will have an official IRS document loaded onto your computer. This confirms the success of your application and provides your EIN. You can save a copy of it on your computer and even print it for your records.

EIN Tips

In case you somehow manage to lose your EIN you can always retrieve it by calling the IRS Business & Specialty Tax Line. ON the call the representative dealing you will need some identification to ensure that you are the person right person to receive the EIN.

You must also remember that once you have finalized your application and the IRS has assigned you an EIN, the mentioned number can never be canceled. In cases where you find that you no longer need the EIN, you can ask the IRS to close your business account.




Recent Posts

How to Start a Business

Powered by