An employer identification number, or EIN, is a federal tax identification number consisting of nine digits that help the Internal Revenue Service to identify your business as it operates within the United States. Applying for an EIN number allows you to contact actions related to taxes as well as hire employees, open bank accounts for your business, etc. Applying for a new EIN should be done based on several factors. Read on to know when you need to apply.
Standard Business Criteria
If you are starting a new business, you will need to apply for a new EIN number. This sole proprietor tax ID number will help to distinguish your business for the IRS based on the nine-digit number assigned to your company. If you have employees, operate a business as a partnership or firm, etc. you will need to apply for an EIN number. You can apply for an EIN online, making it easy for you to receive your new tax ID number and get started within your business.
An Established Business
If you have an established business or receive a company via inheritance or other means, you will need a new EIN number. The IRS requires individuals who incorporate a business to file for a new number. If you are subject to bankruptcy reports, you must also file for a new number. If you run the company after receiving it as a sole proprietorship, then you must also obtain a new tax ID number.
If you are new to the business world, the information regarding tax ID numbers can be confusing. You may be unsure how to apply or when you should do so. With the help of irs-ein-tax-id.com, you can access a plethora of information about tax ID numbers as well as speak to experts on the subject. Find out if you need a new EIN number and easily apply online to complete the process in a matter of hours or one day’s time.