An Employer Identification Number also referred to as an EIN or Federal Tax ID is a nine-digit number that is required for most businesses entities. This unique number is used by the Internal Revenue Service (IRS) for tax purposes. An EIN is used to open a business bank/credit card account, filing electronic tax returns and payments, filing tax reports, and applying for business licenses. In some states, a state EIN is required to file state taxes. Businesses can apply for an EIN in various ways, but the simplest way to get a Tax ID is online.
Why a Business May Need an EIN
There are various circumstances why your business may need a Federal Tax ID. These circumstances include:
- You have or are planning to have employees
- You file employment taxes, alcohol, tobacco, and firearm tax, or excise taxes
- Your Business has a Keogh plan
- Your business is taxed as a C Corporation, Limited Liability Company, or Partnership
- Your business is involved with an estate, trust, IRA, farmers’ cooperative, non-profit organizations, real estate mortgage investment conduit, or employee plans
If your business does not fall under one of those circumstances, you may still need to apply for an EIN. There are some situations when you need a new EIN such as when the structure or ownership of the business has changed; you acquired a company that you operate as a sole proprietorship; you incorporate your business, or your business is subject to bankruptcy reports. Another reason why business owners obtain an EIN is for privacy.
Apply Online at IRS EIN Tax ID
IRS EIN Tax ID offers business owners a simplified Federal Tax ID application to enhance accuracy. In just three easy steps, your Trust Tax ID Number is securely sent on its way to your email within the same day.