All business establishments, regardless of size, that hire any type of employees for any reason must apply for EIN numbers. Employees mean taxes other than just that on the income you obtain from your enterprise. You’ll need your Tax ID Number for multiple reasons that make it possible for you to function as a business entity.
• Hiring employees
• Opening business bank accounts
• Applying for business related licensures
• Filing tax returns
It’s important that you acquire the necessary EIN so that you are legally able to perform these types of tasks within your business. The size of your company is irrelevant.
While filling out a Tax ID application is acceptable for sole proprietors, it isn’t required. Instead, you may use your social security number to file taxes each year. This is sometimes the best option for anyone working as a private contractor without any additional employees. This type of work doesn’t always require separate business-related banking or licensing.
However, for security purposes, many individuals choose to obtain a different business EIN number rather than offer up their identifying information any time a Tax ID Number is needed. This also makes it possible to separate your banking if you so choose, which could make keeping track of finances simpler come tax time than when mixed with your personal accounts.
You may be wondering how to obtain EIN numbers if you’re now realizing that you do need or want one for your official endeavors. We can file an EIN number application for you! Just use our online form to send us the information we need in order to do the paperwork. Then sit back, relax and anticipate the arrival of your new Tax ID Number within the day. Our staff strives to make the process effortless and simple for you, so you can focus on running your business.