Tax identification numbers (TIDs) for businesses are essential pieces of information for small business owners. Not only does it assist the IRS and other government agencies track tax liabilities, file taxes, and pay employees; but it’s also useful when transacting with banks, vendors, and credit card companies.
Most businesses require an Employer Identification Number, also known as an EIN or Employer Identification Code – this IRS number functions similarly to a social security number for individuals. This number must be included on all tax forms including annual and quarterly returns; it can be located on a company’s website, tax documents, and other records.
When applying for a tax ID number, you’ll receive confirmation letter via mail or fax. This document should be kept alongside other important paperwork like bank account info and incorporation documents.
Once you obtain a tax id number for your business, it remains with it throughout its entirety. That means there’s no need to apply for another one when ownership or structure of the organization changes. However, you might need it if you close one branch and open another one later or relocate the operation to a different location.
Finding your EIN can be done several ways, but the quickest and most secure method is applying online with the IRS. With this option, you should receive your number within an hour after submitting your application.
For assistance with the process, you can reach out to a free business counsellor from SCORE, Small Business Development Centers, Women’s Business Centers or Veterans Business Outreach Centers. These knowledgeable experts will be able to answer all of your queries and offer helpful tips.
A business tax ID number is not a license or permit and isn’t even necessary for most sole proprietorships and single-member LLCs. But it’s essential for most other types of businesses, including partnerships and corporations.
When applying for a tax id number, make sure to provide your full legal name and address. This helps the IRS confirm your eligibility for the ID as well as communicate any issues that might arise during the process.
Applying for your tax identification number can be done online, by telephone, fax or postal mail. Doing it this way saves time and hassle – making it the preferred method.
Once you apply for a tax ID, it’s important to monitor its progress so you know when it has been processed and assigned to your business. The IRS website offers an online lookup tool which can help determine when your tax id will be available to use.
If you don’t have access to an Internet computer, contact the IRS’ Business and Specialty Tax Line for assistance. A representative from the IRS will be happy to provide your EIN over phone, or you can email it over for further instructions from them.