If you are forming a corporation, you will need to obtain a tax ID (EIN) number. This is a nine-digit number that is used to identify your business for tax purposes. You can apply for an EIN online, by fax, or by mail. But applying online is usually the best method.
If you are starting a corporation, you will need to apply for an Employer Identification Number (EIN). Applying for an EIN online is the best method because it is faster and you will receive your number almost immediately.
To apply for an EIN online, you will need to have the following information:
- The name and address of your corporation
- The names and Social Security numbers of the corporation’s officers
- The type of business entity you are forming (e.g., C Corporation, S Corporation, LLC)
- The date your corporation was formed
Once you have this information, you can just fill out a form and apply for an EIN. But read on to find out whether you actually need an EIN and when you need to get one.
An EIN is basically just a number that identifies your corporation for tax purposes. The IRS uses this number to keep track of your corporation’s taxes.
When you file your corporate taxes, you will need to include your EIN on the return. And when you hire employees, you will need an EIN to file their paperwork and pay your payroll taxes. So, while a sole proprietor might not need an EIN, a corporation definitely does.
A corporation is a legal entity that is separate from its owners. This means that the owners of a corporation are not personally liable for the debts and liabilities of the corporation.
Corporations can be either for-profit or nonprofit. For-profit corporations are businesses that are formed to make a profit for their shareholders, while nonprofit organizations are generally engaged in some type of charity.
There are three main types of corporations: C corporations, S corporations, and LLCs.
C corporations are the most common type of corporation. They are businesses that are formed to make a profit for their shareholders. The shareholders of a C corporation are not personally liable for the debts and liabilities of the corporation.
S corporations are businesses that have elected to be taxed as an S corporation. S corporations are not liable for the debts and liabilities of the corporation, but they do have some restrictions on their ownership.
LLCs are businesses that have elected to be taxed as an LLC. LLCs are not liable for the debts and liabilities of the corporation, but they do have some restrictions on their ownership.
A corporation needs an EIN when it is formed. Once you have obtained an EIN, you will use it to file your corporate taxes and hire employees. Technically, you might not need an EIN until you do all these things; it’s not required that you get an EIN immediately. The issue is that you could find yourself needing an EIN right away but not have one. Because of that, it’s better to get your EIN right away.
While an EIN is a nine-digit number that is used to identify your business for tax purposes, an SSN (Social Security Number) is a nine-digit number that is used to track an individual’s earnings and taxes. And an ITIN (Individual Taxpayer Identification Number) is a nine-digit number that is used by people who are not eligible for an SSN to file their taxes.
The main difference between these three numbers is who uses them and for what purpose. EINs are used by businesses, SSNs are used by individuals, and ITINs are used by people who are not eligible for an SSN. Anyone with an SSN or an ITIN can get an EIN; you don’t need an SSN to get an EIN. Furthermore, an SSN could be used as a sole proprietor who owns a business, if they solely own the business.
If you are a sole proprietor, you might not need an EIN. But if you are forming a corporation, you will need to get an EIN. You don’t need to get an EIN right when you create your corporation, but you should. In fact, you can even get your EIN before you form your corporation, technically, as you can send in the paperwork at the same time. But you will need to file additional paperwork if anything about your corporation changes when forming it.
If you get an EIN online, it should be minutes or hours. It shouldn’t take long at all. Through fax, it can take a few weeks. And through mail, it can take up to two months. This is another reason why it’s always better to get an EIN online.
Applying for an EIN online is the best method because it is faster and you will receive your number almost immediately. You can also apply for an EIN by fax or mail, but it will take longer to receive your number this way.
If you are faxing or mailing your application, you will need to wait to find out whether your application was correct. The easiest way to get an EIN is to go through a company that specializes in EINs; they will make sure that your application is correct and can even help you form your company.