When starting a new business, you must fill out an application to receive a federal tax ID number. One of the quickest ways to do so is online. An SS4 online form can be used to provide your business with this much-needed sales tax number so you can begin hiring employees, opening business bank accounts, etc. For new business owners, you may be confused as to what a federal tax ID number or EIN actually is. Read on to find out more.
An EIN number or Employer Identification Number is a federal tax ID that the Internal Revenue Service requires in order to identify your business for tax purposes. An EIN number has nine-digits and acts like a social security number, except for your business rather than an individual person. To apply for this number, you will need to fill out an SS-4 form. This can be done for free but many new business owners feel the process is quite confusing.
Thankfully, resources like irs-ein-tax-id.com offer online applications for EIN numbers to be obtained by businesses. With this tax ID preparation service, you can easily fill out the paperwork needed for the number plus file the required documentation. Filing takes a short period of time and usually within a day, you have your new EIN number.
Do I Need a Tax ID?
Whether you run a business or inherit one, you will need a tax ID number. Below are the various organizations that the IRS requires an EIN number:
- Sole proprietorship
- Limited Liability Companies
You will need this tax ID number in order to pay business taxes, pay employees, open a business account at your local bank, take out a line of credit for your business and more. Be sure to apply for your EIN number quickly so that you can get the ball rolling on your new business.