Much like your social security number allows you to file personal taxes and track personal finances, your company’s federal employer identification number allows you to handle financial aspects of your company. The EIN number is a requirement for many types of businesses, including partnerships, some types of corporations, trusts, estates, farmers’ cooperatives and several others. You will also need an EIN if any of the following pertains to your company.
- You have employees
- You withhold pay for a non-resident alien
- You have a Keogh plan
Even though not all types of businesses require a federal tax identification number, it is still a good idea to apply for one.
How an EIN Helps Your Business
Whether you need a Wisconsin EIN, or you live in another state altogether, a federal tax identification number allows you to do quite a lot for your business. Most importantly, you can obtain licenses to operate legally, which is especially necessary if your business deals with firearms, alcohol or tobacco. The EIN also allows you to hire help when your business becomes too much for you to handle alone. Do you want to establish your company as a professional entity of its own? Its tax ID number allows you to open a bank account under your company’s name as well as to apply for loans and credit cards with your business name. Finally, the EIN number helps to protect your personal assets. When your business has its own nine-digit number, you don’t need to risk your personal security by putting your social security number on business forms. In some cases, the EIN will even protect your business assets during a company bankruptcy.
Applying for Your EIN
Applying for an EIN via IRS-EIN-Tax-ID is simple and takes just minutes. You can track your application online and will typically hear back in about three business days. Find out more about how the federal tax ID can benefit your business by contacting the professionals at IRS EIN Tax ID Filing Service.