When you are first starting a new business, there are several things that you need to think about. One thing you need to consider is applying for an employer identification number (EIN). This is a topic that is discussed anytime you’re starting a new business or making changes to your existing business and are unsure whether or not you need to apply for a new one. Mark Dicus Company is here to explain what an EIN is and when you need to have one.
What is an EIN & When Does Your Business Need One?
If you haven’t heard of an EIN before, it is basically like a social security number for your business. This is the number that the IRS is going to use to identify your business. Here are some of the reasons you are going to want one.
– You will need it to pay any of your employees
– It will be needed to file tax returns for the business
– If you need any accounts with banks, credit unions or brokerage houses, they won’t allow you to do it without an EIN
– If you are a subcontractor, you will need one so the contractor you are working for can report any of the income that they have paid to you
– It can help to protect you against any identity theft risk since you can use that number rather than you own social security number
Applying for an EIN is Free
It is important to remember that when you’re applying for an EIN, there is no fee connected to it. This is important to remember because there are some sites online that will attempt to charge you money to give you a fake number. If this happens, you know that you’re in the wrong place. You should only be applying for this number on the IRS’ website.
Pros of Getting an EIN
There are clear benefits to applying for and having an EIN for your business. Not only will you be protected from identity theft and have the ability to apply for different accounts with banks and credit unions, but you will also have more credibility as a business owner. Clients and customers will take you more seriously when you have one of these numbers. It can also help you establish a credit history for your business.
When Do I Need to Apply for a New EIN?
There are certain circumstances that will require you to get a new EIN.
– You have claimed bankruptcy
– You incorporated after acquiring your EIN
– You have started operating as a partnership
– You purchased your business that you operate as a sole proprietorship
Tax Consulting, Preparation, Filing & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about how to get an EIN or any other questions about your taxes, you can turn to Mark Dicus & Company to help you sort it all out. We offer tax consulting, preparation and filing services to help ensure you’re on track. Call us today!