Among one of the most important parts of opening a new business is properly registering that business for tax purposes and obtaining your EIN. Here is a bit more information about the EIN and registration basics:
What is an EIN? (Employer Identification Number):
An EIN, or employer identification number, is a nine-digit number that is assigned to your company by the federal government. Once assigned, an EIN should be used to file your company’s taxes every year. In most cases, an EIN will not change unless the nature of your company is altered. For instance, if you go from Sole Proprietorship to Partnership, you will need to apply for an EIN for your new company entity. Fortunately, completing a tax id application is easier than you think.
Obtaining an EIN:
Most business owners need to submit Form SS-4 to apply for their EIN. The form can be submitted by fax, by mail, or online. Submitting online is by far the fastest and easiest way to submit your EIN application. When you submit with a reliable site such as Gov Doc Filing, you can expect to receive your EIN in one to two days. If you submit by fax or mail, you should be prepared to wait two to four weeks for a response.
Once you obtain your EIN, you can use that number to open a line of credit for your company as well as file your taxes. Even after you have received your EIN number, it is best to wait a few weeks before filing your taxes which is why you should apply for your EIN as soon as possible.
Applying for your EIN well before tax season and using a reliable application process will help ensure that your company’s Tax ID is properly registered which will help you avoid future trouble.