EIN (Federal Tax ID)

Also known as Employer Identification Number, a Federal Tax ID is necessary if you need employees for your business. If you are a sole owner of your business, you may still need such ID. To obtain this ID, you can opt to fill out a form and submit it via snail mail or by fax. Alternatively you can choose to apply for it online.

 

Why You May Need One?

The Federal Tax ID will be used in filing taxes and other documents with the government. Here are the types of businesses that are required to obtain an EIN:

  • All corporations
  • Partnerships
  • Companies with employees, including LLCs with single member and sole proprietorships

Some nonprofit organizations, trusts, and co-ops may need an EIN. Now, if your type of business has been changed or got back from bankruptcy, you need to apply for a new EIN.

For most business owners, getting this ID is one of the most vital things they do after they have formed or incorporated an LLC. As mentioned earlier, companies need it to open business checking accounts and accounts with some vendors.

The general rule is that an EIN is suitable for all types of businesses, except for sole proprietorships with no employees.

Completing The Application Online

You can always choose to apply for and receive the ID online. The overall process can be completed in less than 15 minutes. However, there are some issues in applying for it online. Sometimes the systems may crash, so you need to start over. If the application is successful, you will get a hard copy of your ID through mail. However, you need to request an additional letter to confirm that you have applied for the EIN or Federal Tax ID.

Although it is easy to apply for it online, there are some questions that you may still have on your mind. If you have questions about Federal Tax IDs, it is best that you speak to a tax attorney as soon as possible. Tax lawyers can answer your issues that are unique to your case. They can also assist you in applying for such ID with no hassle on your part.

If you have questions about EIN or a Federal Tax ID, you may consult with our tax attorneys. Our tax lawyers have years of experience in dealing with business and commercial law. They can answer all specific questions that you may have about your business. Call us today at 800-950-2237 so we can help you apply for an EIN.