FinanceBuzz is reader-supported. We may receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies. Show If you are a small business owner, chances are you either have or need a federal tax ID number, also called an EIN (Employer Identification Number). This is a unique identifier you’ll need to correctly file your annual business taxes, pay quarterly taxes, and take other necessary steps of running your business. The process of figuring out how to start a business varies from state to state, but as you file the paperwork to get set up, you’ll likely request your EIN from the Federal government. If you’ve been in business a while, you probably did this when you first started. If your business is new, you may have already filed for an EIN or perhaps this is something you need to do. This article will help you either find your tax ID number or apply for it so you’re squared away for filing your Q4 taxes, annual business taxes, and other financial or legal transactions for the coming year. In this article
When you’ll need your EIN numberThe IRS requires that certain businesses have an EIN. If you can answer “yes” to any of the following questions, your business falls into this category:
Even if your business doesn’t fall within these parameters, which may be the case if you have a single-person LLC or a sole proprietorship, it is still a good idea to have an EIN. First, it doesn’t cost you anything to apply for an EIN. Second, once you have one, you can do many things officially as a business instead of a single person. Some of these things include applying for business credit, opening a business bank account, hiring independent contractors and issuing 1099 forms to them to account for the money you paid them for services, as well as apply for various permits and licenses. Third, you create a clear differentiation between yourself and your business. Sole proprietors use their personal Social Security Numbers (SSN) on tax documentation. Using an EIN for filing taxes and official documentation takes your SSN out of the equation and keeps everything directly linked to your business. How to find your tax ID number — 3 optionsEINs are not automatically assigned to a new business. You have to apply for one, which is a simple process. These three steps will help you figure out if you applied for one in the past and already have one, or if you didn’t, how to get one.
If all of these actions do not produce an existing EIN, you will have to apply for one. The easiest way to do this is online at IRS.gov. You can also complete a Form SS-4 and fax or mail it to the IRS. Finally, you can apply by phone by calling 267-941-1099. In conclusion, finding your EIN is simpleHaving an EIN is a handy thing for any business owner, even if you’re just one person running a small business by yourself (like me!). After all, once you're successful at how to make money, you have to deal with how to pay taxes. An EIN can open many doors for you and make the administrative side of your job a lot easier. With Q4 taxes coming up soon and returns due by April 15, making sure you’re ready to file your paperwork as soon as possible will save you some headaches in the coming months. So get to it! Up to 5% Cash BackInk Business Cash® Credit CardInk Business Cash® Credit CardLearn How to Apply Current OfferEarn $900 bonus cash back after spending $6,000 in the first 3 months (limited time offer) Annual Fee$0 Rewards Rate5% cash back at office supply stores and on internet, cable, or phone services (up to $25,000 combined annually); 5% cash back on Lyft; 2% cash back at gas stations and restaurants (up to $25,000 combined annually); and 1% cash back on everything else |