A Social Security Number, or SSN, is a nine-digit number associated with individuals in the United States as a form of identification. An SSN is used to apply for loans, open a bank account, as well as apply for insurance and medical coverage. When it comes to businesses, a tax ID is needed for identification purposes. The Tax Identification Number will be assigned to a business entity when an application is filled out. IRS-EIN-Tax-ID provides access to online applications, making it easy for business owners to get started with the process of an EIN.
The Purpose of a Tax ID
A tax ID is used by the Internal Revenue Service to help identify a business that needs to be recognized differently based on tax purposes. There are many types of entities that can be formed, such as corporations, limited liability companies, estates, and trusts, etc. Each of these entities needs a separate tax ID which can be completed by filling out forms online.
When filing for an EIN as an estate, trust, corporation, church, sole proprietorship, non-profit or partnership, an SS4 form will need to be filled out. You can find an SS4 online, making it easy for the form to be filled out from home or at the office. Once the form has been filled out, you will be sent your new EIN number in a short time frame.
With the Estate tax ID number or business EIN, you will then be recognized as a single entity, plus have the distinction needed for your business or entity tax needs.
IRS EIN makes the process simple with online applications and 24/7 support. Contact support when you need help with filling out the EIN forms for your business. Support can be reached at any time to assist with questions or concerns.
Your business is going to need to file income taxes. The Internal Revenue Service uses Tax Identification Numbers to distinguish between individuals, business, and nonprofit organizations, but business tax ID numbers should be distinct from your personal federal tax ID number.
DIFFERENT TYPES OF TAX ID NUMBERS
Every American Citizen has a Social Security Number. These are nine-digit codes unique to all individuals. The Social Security Administration issues them at birth or to adults that successfully immigrate. When you file your federal income tax returns, this number distinguishes you from others who might happen to have the same name. States also accept your SSN as a State tax ID number.
A business must also file income taxes, and different business structures may have more than one owner. Businesses also change ownership but remain separate legal entities. The Internal Revenue Service issues Employer Identification Numbers. Like an SSN, and an EIN is a nine-digit code unique to each business.
HOW BUSINESSES USE TAX ID NUMBERS
An Employer Identification Number is essential for an LLC or a corporation. You should acquire this number when you first apply for LLC formation. Sole proprietorships may also apply for tax id numbers.
These codes appear on several important financial documents:
- Income tax filing for business entities
- Payroll distribution tracking for employees
- Business credit files and credit applications
It is possible to open more than one credit file by requesting multiple Tax ID numbers. To cut down on abuse, the IRS limits distribution of EINs to one per day for each applicant.