EIN Application For Your Business

In this modern age, many people are involved in online selling and buying business. Some of us may know of people or who have heard of some people who are buying products from wholesale online websites and then selling them on their own websites. Many are just thinking of making some extra money to help with their monthly expenses but many do not know or are worried whether they will be taxed on their online income. Some are wondering whether they should apply for an Employer Identification Number (EIN), also known as the Federal Tax Identification Number. EIN is a nine digit number assigned to business entities operating in the United States by the Internal Revenue Service (IRS) for the purpose of identification with respect to their tax obligations.

As long as you are operating as a sole proprietor or if you are the sole owner of a limited liability corporation (LLC) without any employee, you only need a personal Social Security number as a tax ID instead of an EIN. But if you are sole proprietor and who files pension or excise tax returns, then you will need to apply for an EIN.

If you are an owner of a limited liability corporation and have an employee or employees, then you are required to apply for an EIN number. Those operating as partnerships without non-partner employees are also required to apply for EIN online through the Internal Revenue Service website. This online application method is available to all business entities whose main office or legal residence is in the United States.

Here are some information for those who wish to make further enquires. You can call the Business & Specialty Tax Line at (800) 829-4933 between 7:00 a.m. and 7:00 p.m. (local time). International applicants must call (267) 941-1099. The lines are open from Monday through Friday. Application can also be done through telephone, fax or mail by completing the PDF form SS-4 and sending it to the appropriate IRS numbers.

A business EIN does not expire but there are instances where a new EIN has to be re-issued. New tax id application is needed for the following cases:

  • When an existing business is obtained through a purchase or inheritance and the new owner plans to run it as a sole proprietorship.
  • When a sole proprietorship changes to a corporation or partnership.
  • When a business corporation changes to a partnership or sole proprietorship.
  • When the individual owner of the business died, and the estate has taken over the business.
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