All business entities are typically required to obtain a Federal Tax ID number (often referred to as an EIN), in order to streamline certain IRS imposed tax-related payments. To put it in simple terms, an EIN acts much like a personal social security number, but for your business. Your company will also need an EIN to open any financial accounts.
Frequently Asked Questions
Federal Tax ID (EIN) FAQs
Why does my business need a Federal Tax ID number (EIN)?
Do I need to apply for a new EIN if I had one for my previous sole proprietorship?
Yes. Informal business structures typically use their owner's (or owners') individual social security numbers as their EIN. As a result, you will need to apply for an EIN in the event that your business incorprates as an LLC or corporation.
What state-level paperwork is required when filing for an EIN?
A few states require all businesses to obtain a State Tax ID Number, in addition to their Federal Tax ID Number. Please feel free to visit our state-by-state incorporation guides, to check and see if this process will be necessary for your business.
Are there special steps required to obtain an Individual Tax ID Number (ITIN)?
If you do not have a personal social security number, you will need to obtain an Individual Tax Identification Number (ITIN) in order to obtain an EIN for your business. This process requires the filing of Form W-7 with the IRS.
How can I obtain my company's EIN?
In order to obtain an EIN, you will need to prepare and file Form SS-4 with the IRS on behalf of your business. Swyft Filings can complete and file all documents required to complete this process for your company.