What is a Tax Identification Number
A tax identification number is a unique number that the Internal Revenue Services (IRS) provide to businesses within the United States to better help with identifying legitimate/ legally operating businesses in the country. The tax identification although is not exclusively issued to businesses, it can also be issued for multiple purposes; when it comes to filing taxes annually. Having this unique number will also allow you to register your business / brand in the state that you live in, making it easier for other companies to verify your business as the real deal. Doing this will allow you to build brand awareness and create new relationships with people in your industry.
How Do I Know if I’m Required To Get a Tax Identification Number ?
Even if you’re not required to have a tax identification number, you can decide to receive one. In the same way, a tax id number is essential for each business entity. Once you own a tax id number you’ll have to get hold of the IRS to make an application for a tax resale license number. It’s also the initial step in figuring out how to know your numbers. It’s the number the IRS uses to recognize the organization, and it has to be included in tax filings the company makes. A toll-free number is likewise an important item to get, but you don’t need to have it right from the gate. Partnership-any number of people who collectively have a business but aren’t incorporated.
If you wish to repair your credit by yourself, your very first step is going to be to acquire your credit report. In case
you intend to submit an application for a home credit in the future, it’s a sensible idea to keep a relentless record of submitting returns as the home advance organization will without doubt insist on it. An important idea to take into consideration when working to fix your credit, is the simple fact that you can’t legally have another credit file created for you. To prevent these three BIG mistakes to swiftly build an exceptional small business credit profile and score that you’re able to utilize to acquire credit for your organization. Utilizing a shelf corporation isn’t the ideal approach to construct business credit.
The primary reason why you need to cut back your income tax is to save more cash and set it into better use which will help you in future. The taxes aren’t always reassessed based on the industry cycle and it’s your obligation to dispute them. It is basically just a tax on the value added at every stage and a supplier at every stage is allowed to set-off through a tax credit mechanism. Why No One Is Talking About What Is a Tax Identification Number What to Expect From What Is a Tax Identification Number? Once you get your number, have a minute to write it down. In the exact same way that you guard your social security number, you should be careful to safeguard your EIN to lower your risk of business identity theft. You just need to have a Social Security Number and a business that’s found in the United States or a US territory.
What Do I Need To Get a Tax Identification Number ?
Contrary to what everyone might tell you about obtaining a business tax id number, the process is extremely simple and if done correctly. Getting your tax identification number in about 5-7 business days is a real possibility after you have submitted all the necessary documentation to the IRS for processing. Below we have listed four things you will need to have in order to apply for your tax id number.
- Social Security Number
- Physical Address
- Name of Business
- Type of Structure of the Business
- The IRS does require person’s wanting to establish a business in the United States have a social security number to apply for their entity, to not only prevent fraud; but to also know which parties are responsible for the company.
- The IRS also will need to have a physical address on file, so they would know where your business will be operating at and how to send you any necessary documents once your ss-4 application is approved.
- Although it might seem to be common sense – Yes the IRS will need to know what you will be calling your business before any EIN will be issued.
- Knowing what type of business structure you would like to use can be really confusing if you have never done it before. Below we have provided a link for information on different company structures. Learn more about business structure types
How Can I Locate My Tax Identification Number If I Misplaced It ?
Even if you have misplaced your businesses tax id number, the good thing is it’s very simple to locate it by thinking outside of the box and retracing your financial steps to locate it.
- Checking with your financial center (Bank) is a great way to locate your missing tax identification number for your business, most accounts that are opened, are required to have a tax id. Verifying yourself at your local banker might allow them to provide you with your businesses ein number.
- Contact the IRS – Even though you might have to wait on hold for over an hour to speak with a representative, the IRS does keep records of all issued tax id numbers and you should be able to request the representative to send you a copy of you missing number.
- Through the city where your business is established. If you started you business in any state in the United States, most likely you had to register the business through the city ( Articles of Incorporation) if you had to doe this, there is a good chance that you tax id is apart of the submission and all information on the city website is public access. ( Search your company name and BINGO! )
What Are Tax Identification Number’s used For?
Although the primary function of having a tax id number is for tax reporting purposes for the IRS to keep records of what companies are doing business in the USA and how much they are making. Having a tax id can help you with lots of other things while your building your business.
- Having a tax id will save you from having to give you social security number to vendors for W-9 reporting, keeping your identity safe from possible fraudsters.
- Establishing a bank account with any financial institution under your businesses name.
- Allows you to build credit with your business and by doing that, it will ultimately give you a chance to open a credit line under the company.
- Setting up merchant service processing system, that will allow you to collect credit card payments from other companies or individuals.
Does a Tax ID Number Cost Money?
No, The simplest answer to that question. Applying for a tax identification number is actually free and can be done by contacting the IRS . Most companies that charge to obtain your business tax id are charging a filing fee for their service and expertise. Almost like cutting your own grass, you can do it for free or you can pay a professional landscaper to cut the lawn, but more than likely it will be a charge associated with the service. Below we have listed four ways you can apply for a government issued tax id for free.
- Mail a completed SS-4 Application form to The IRS
- Fax a completed SS-4 form to the IRS
- Contact the IRS via phone and do a application over the phone
- Online through the IRS website directly.
All these methods are very effective with receiving a tax id in a timely matter, the only thing is if any of the documentation is deemed incomplete or incorrect; more than likely the Internal Revenue Services (IRS) will decline your application and you will have to re-apply.
Should I use a Tax Identification Number for Estate/ Trust Planning?
Yes, Even through it is not required in most states, we would strongly recommend obtaining a fast tax id number for the purpose of managing someones estate or trust. The reason why this strongly recommended is if anything ever happens regarding the managing of the funds for either the trust or the estate, it will be much easier to provide any judge or family member with any tax reporting.The documents separate your personal income or any business endeavors you might have going on. This will also help to identify what is owned by yourself and what belongs to the estate /trust.
- For additional information we also would recommend contacting an attorney who specializes in this area and can actually give you legal advice.
What is The Difference Between an Employer Identification Number & a Tax ID ?
This is really one of the most common questions and we are going to answer this right now. Nothing. Employer identification number and a tax id number are the same thing. Many people just refer to them by different names and “Yes” there are plenty of alias you might here it being referred too. We have taken the liberty to compile a list of what a tax id can also be know as:
- Federal Employer Identification Number (FEIN)
- Employer Identification Number (EIN)
- Tax Identification Number (Tax ID) or (Tax ID #)
- EIN Number
- Business Id Number
We might of missed a couple of other nicknames , but even though the are called different things; the function remains the same. We have also provide some links listed below on Employer identification Numbers and Federal Identification Numbers:
Should I use My Social Security Number or a Tax id ?
If you are what’s considered a sole proprietor of a company and are not planing on expanding your business or hiring anyone to work with you, then the answer would be NO. Sole Proprietors can enjoy the luxury of using their government issued social security in order to conduct their business. Be advised the reason why this method is never recommended is due to the fact that if you are a contractor, working for multiple companies they will be requiring you to complete a 1099 for income reporting for the IRS; if for any reason your social security number falls into the wrong persons hands – Your whole identity might be compromised and fraudulent things might start happening in your name. If you are any other business structure type, the answer would be “Yes” because the IRS will need to identify if there are going to be any employees working for you and how much said employee has received in taxable income.
For additional information on Social Security Number Vs. Tax ID, we provided a link below;
Will The IRS Close or Cancel My Tax Id Number?
If you’re no longer in business, the IRS will cancel your company, but will continue to keep your EIN for future use so that you do not need to submit an application for a new one. If you own a company that isn’t incorporated and isn’t an LLC, and you’re running it as a sole proprietorship (the default if you haven’t formed a business entity and you’re one person), your default tax ID number is your very own social security number. Generally, unless your company is a sole proprietorship with no employees and no separate legal entity for your organization, you will need to obtain an EIN. Whether it is new or simply relocating, you will need to have a Tax ID number. A business and business law attorney is able to answer questions specific to your business wants, help you submit an application for an EIN, and more.
How We Can Assist With Getting You With Obtaining Your Tax ID Number ?
Quickein is a tax identification filing service with no affiliation to the IRS, we are not lawyers or any legal experts. We provide fast and accurate employer identification number applications to the IRS on a regular basis and we ensure that our clients will in most cases receive their government issued IRS EIN in only a few hours for the low cost of only 49.95. Our team is dedicated on handling all our clients request in a urgent fashion and we always ensure our clients are satisfied . If you are still interested in getting an EIN from the IRS , we have also provided a step by step process of completing a SS-4 application for you business tax id.
In many states around the United States, a tax identification number is essential before the business to operate within the country legally. Bear in mind you have to supply your Tax Identification Number for every state if you are planning on establishing a business anywhere, hopefully you were able to learn everything that is needed to know when it comes to establishing a tax identification number. If you still have questions regarding establishing new businesses in the state you live in click the map below and we have some different details for each state.