applying for a tax id
Throughout the years, a handful of companies have set themselves apart from the competition. Frankly, it feels like these companies magically appeared out of nowhere and instantly rose to fame with applying for a tax id information.
This is definitely not the case. Although it is possible for companies to gain popularity rapidly, they must go through an extensive process, before they can even be labeled, as an official company.
One step involves obtaining an Employer Identification Number. In order to acquire a number for yourself or your company, you will need to obtain, complete and submit the SS4 form. Within this guide, you will learn all about the application process.
The EIN :
Before moving any further, you should take the time to learn about the EIN, or Employer Identification Number. Although employers and corporations commonly utilize the number, single individuals and non-profit organizations can also use it.
The most notable benefit is the fact that the EIN makes it much easier for organizations to manage and report their assets and liabilities.
Also, the EIN is capable of replicating the purpose of the SSN in many regards. By utilizing the EIN instead, you will be able to keep your Social Security Number safe and hidden from potential thieves. Finally, the number can be used to open a separate banking account for your business, which is highly recommended.
The Form applying for a tax id
Now that you’re learned about the benefits of the EIN, you should be able to see that it is beneficial for organizations, as well as single traders. This is why many people are encouraged to obtain an EIN, even if they’re not required to do so, by law.
Once you’ve confirmed that you would love to do the same, you will want to obtain the SS4. Although the form may seem complicated initially, it is nothing more than the application for the Employer Identification Number. The form can be downloaded directly from the official website of the Internal Revenue Service.
Completing an Form
Once you’ve obtained the form, you may look at it and grow bewildered. At first glance, it does look complicated, but most of the information required should be known already. In fact, most of the information pertains to your company and you. Below, you will find a breakdown of this information.
The company’s name and address
The responsible party’s name and SSN, ITIN or EIN
The functionality of the entity in question
Your specific reasons for applying for an EIN
Estimated number of employees in the near future
Type of principal activity of the business
applying for a tax id
How To Submit
Finally, you will need to deliver the form to the Internal Revenue Service. Remember that this form contains important information, which needs to be protected extensively. Therefore, you should make sure that it does not fall into devious hands applying for a tax id
Faxing the form to the IRS is one way to proceed and it can help to ensure that it is delivered directly or if applying for a tax id will help
Submitting it through the snail mail is another, but proceeding down this path will impose a longer wait time, until you’ve able to get your EIN. You may also wish to submit the document in person. This is wise, if you live near an IRS facility, or applying for a tax id.