What is a tax ID number used for?

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When you have a Tax ID Number, your business will not only be able to file taxes, but you can also get much-needed financing. Securing a Tax ID Number can be done quickly, and you will have access to the number immediately. Use the services of our EIN assistance professionals, and the process to apply for a Tax ID Number will go much smoother.

Tax ID Number Used Throughout Life of the Business

The Tax ID Number is a nine-digit number, much like a social security number, used by the government to identify your business. The Tax ID Number is used to secure financing for your business, including gaining credit. You can also use this number when it is time to file taxes.

The process to apply for a Tax ID Number is simple to fill out and can be completed right away. When the application is complete, you will know immediately if your EIN is approved. You only need to have a Social Security Number and a business that is located in the United States or a US territory.

How to Update Your EIN When You Relocate

The EIN application will need to be updated when you are relocating your business, or if it changes owners. Unless you update your Tax ID Number, it can not be used to pay your taxes. To update the EIN, you will need to locate your number. There are several ways you can retrieve this information.

The Federal EIN is located in the left-hand corner of the W-2. You can find this number on any tax documents that were created for your business. Also, your bank will have the number on file from when your account was created.

Whether your business is new or simply relocating, you will need to have a Tax ID Number. The Federal Tax ID is easy for any individual, corporation, or partnership to obtain. To apply for a Tax ID Number, you need to follow a couple of guidelines, and your business will get off the ground quicker.

Why do I Need to Apply for a Tax ID Number Before I Form my Business?

Your EIN or Tax ID Number is required by the IRS to make sure you are meeting your tax obligations. If you were to structure your business as a sole proprietorship or as an LLC without employees, you could simply use your social security number for tax filing purposes.

But remember, if you are a sole proprietorship that files excise tax returns or pension returns, you will need to apply for a Tax ID Number.

Do Partnerships Without Employees Need a Tax ID Number?

Partnerships without employees are required to have a partnership Tax ID Number. The IRS wants to make sure that businesses are reporting taxes correctly, and filing for a Tax ID Number puts you on the right path to complying with federal tax law. When you use your Tax ID Number for tax filing, IRS can easily track it and verify it.

When do I Need a New Tax ID Number?

You will need to apply for a new Tax ID Number in circumstances other than business formation. These instances include:

  • Obtaining an existing business through purchase or inheritance, if you plan to run the business as a sole proprietorship, you will need a sole proprietor tax ID
  • Changing your business from a sole proprietorship to a C-corporation or S-corporation
  • Changing your business from a partnership to a C-corporation or S- corporation, or a sole proprietorship
  • Changing your business from a C-corporation or S-corporation to a sole proprietorship or partnership
  • Taking over a business as an estate from an owner who has died, you will need an estate tax ID

You can easily obtain a Tax ID Number in any of these scenarios by filing for a tax ID with IRS-EIN. We facilitate speedy application and approval for a new tax ID. Whether you need an Oregon tax ID or any other state, use the information on our website and apply today to get started.

Select Your Entity Type to Apply for a Federal Tax ID Today