According to the Internal Revenue Service (IRS), all corporations must obtain a tax ID, sometimes called an Employer Identification Number (EIN). An EIN number for business is used by the IRS to track tax obligations of various legal entities, such as corporations, partnerships, estates, and non-profits. If you own a large corporation, you do not need multiple EINs for your business. A single business tax ID number is all you will need to satisfy any requirements. However, there are specific instances where it might be advantageous to obtain a second EIN number for business.
Applying for Multiple EIN Numbers
In the event an established corporation creates subsidiaries, which could be formed as any number of business entities (another corporation, partnership, or LLC), the subsidiary is not considered a division of the parent corporation, and should therefore have its own EIN number for business.
In this case, the parent company must register and file the subsidiary with the appropriate state agencies, depending on the type of entity established. You must also apply for business tax ID number for the subsidiary for federal tax purposes.
Once the subsidiary has it’s own business tax ID number, the new business can then act independently of the parent company, including opening bank accounts in it’s own name, and making payments in the name of the subsidiary.
How to Apply For Business Tax ID Number Online
Getting an EIN number for business is easy when you apply online. Online applications are the fastest and easiest way to obtain an EIN number for business because simplified forms reduce red tape and guarantee delivery of your new EIN number within 24 hours.
You can also apply by phone or mail, but these application methods can take up to two weeks to process. Don’t wait to get this important tax ID. Apply online today and get your EIN number for business tomorrow.