An Employee Identification Number is a requirement for nearly any type of partnership, corporation or organization. For those who must pay taxes, the EIN allows them to do so. Even exempt organizations should have a Federal tax ID to pay employees and open bank accounts or credit cards.
When To Obtain an EIN
When starting a business or organization, apply for an EIN online as soon as possible. If you already have a business and have yet to obtain a tax ID, you must apply for it once you hire employees — this includes those who work in your household — want to open a business bank account, or change the legal character of your business, such as from an LLC to a partnership. You will also need one if you represent the business estate of someone who has passed away.
Types of Business That Require a Federal Tax ID
- Sole Proprietor: Apply as a sole proprietor if you own your own business or employ people who work in your household.
- Partnership: This typically includes unincorporated organizations with two or more members.
- Limited Liability Corporation: This may be an individual or group and must be filed with the state to prevent others from using the same name.
- Corporation: These are their own entity with an indefinite lifespan.
- Trust: Guardianships, irrevocable or revocable trusts, conservatorships and several other types of trusts fall into this category.
- S-Corporation: These entities are domestic corporations that meet eligibility requirements and wish to avoid double taxation.
- Estate of a Deceased Individual: This includes real estate, personal property and businesses owned by someone deceased and controlled by a beneficiary.
- Personal Service Corporation: These corporations pertain to providing services in engineering, accounting, performing arts, health and several other fields.
- Non-Profit Organization: A non-profit is any entity that qualifies for tax-exempt status, such as educational organizations or churches.
- Church-Controlled Organization: These include any organization deemed a church or an association of churches that has a mission statement.
IRS EIN Tax ID Filing Service has an easy EIN application that you can fill out 24 hours a day, any day of the year (thanks to the internet). It is available on their website, IRS-EIN-Tax-ID. You can track your application with its tax ID number lookup. Contact the company for more information.