Business

Why obtaining an EIN is necessary and how can we get it?

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The Internal Revenue Service issues an EIN to your firm, which is a unique nine-digit number that identifies your company for tax purposes. It’s similar to your Social Security Number, except it’s just for businesses. It’s required for paying staff and keeping track of your business’s taxes. The state issues EINs, which are used on state tax forms.

Why getting EIN is necessary?

Even if you aren’t required to have one, you should consider acquiring one. Having an EIN, in general, helps you disconnect your private money and life from your business. This is critical for simplifying accounting and bookkeeping, as well as limiting responsibility in the event of a lawsuit. And if you’re wondering about solutions for EINs — here’s a guide explaining what an EIN is and how to get one.

Identity protection

An EIN may provide a layer of identity protection for your company, regardless of its size. Keeping your personal information safe in a society ripe with potential for identity theft is critical. Your social security number is kept confidential with an EIN. When suppliers need credit information or customers need data to make a payment, they use your EIN, which protects your privacy.

File business taxes and avoid tax penalties

You must fill out special documentation to tell the IRS if you do not have your EIN by tax day and were supposed to receive one. If you forget to do so, the IRS may reject your submission, and you may be subject to penalties for submitting late. Furthermore, having an EIN reduces your chances of an IRS audit for some types of tax deductions, such as home office deductions.

Prevent identity theft

You might be shocked to hear that obtain an EIN is a useful tool for preventing identity theft. An EIN is a number that distinguishes your personal and business accounts. You won’t have to give your personal Social Security number to clients or vendors if you have an EIN. You can instead supply your EIN.

How to get EIN numbers easily?

An EIN is required for every business (IRS Employer Identification Number). For tax purposes, a corporation or limited liability company (LLC) should have its own EIN. 

Apply online

Customers that want to apply for and receive an EIN should use the Internet EIN application. After you submit your application, it is validated online, and an EIN is granted right away. All entities whose major business, office, or agency, or legal residence (in the case of a person), is situated in the United States or U.S. Territories, can apply online.

Apply by FAX

A completed Form SS-4 (PDF) application can be Faxed to the taxpayer’s state FAX number (see Where to File – Business Forms and Filing Addresses). Your EIN will be assigned according to the entity type’s procedures. If the taxpayer provides a fax number, the EIN will be given via fax within four (4) business days.

Apply by Mail

An EIN application received by mail will take four weeks to process. Don’t forget to visit here to write down or print your EIN number whether you acquire it online or over the phone. Later, you will receive an official letter in the mail. If you favor a printed copy, Dodge Legal Group clients will find teaching and the form in their personalized company binder, or you can download it by going to the Start Up page of this website and clicking the link.

Rahul

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