Do you know what an EIN is? Some people recognize this as a business tax ID. This is a nine-digit number that is assigned to various businesses who will register. There are people who know that they should get this because of different reasons. If you are just starting out, you may not know yet if this is necessary for your business or not. Just imagine how much you value your SSN. This is how you should value your EIN for your business.
If you want to apply for EIN, you need to know first if the business that you would like to register does not have its own EIN yet. Some people who acquire businesses from other people do not know this and they only end up getting confused. You can always hire a lawyer to help you with the possible complications. Still, you can avoid this by doing an EIN lookup beforehand.
There are some businesses who are required to get an EIN. This means that you have to get one the moment that you decide that you are going to start your new business. In other places, you still have the option to decide if you would push through with it or not. Whether you actually need it or not, you may want to check some of the benefits you can get by having it:
- You can file for business taxes ahead of time. If you do not do this, you might acquire some penalties that may cause unnecessary stress for you and the rest of the people who are working with you.
- Using the EIN instead of your SSN will reduce the chances of being a victim of identity theft. Do remember that there are a lot of people who become victims every year. You do not want to become part of the statistics.
- You can open a bank account in your business’ name. This will make it easier for you to separate your personal funds from your business funds.
Once you have registered, you can check out the IRS EIN lookup to be sure with what you will get.