What Happens If I Don’t Get An EIN?
As a new business owner, you want to make sure that you’re following all of the proper procedures to get your company up and running, as well as be compliant with all rules and regulations of the law. One of the most important things to get is your EIN number, as this will determine how you efile your taxes and will enable you to hire employees. But what happens if you’re not getting an EIN? Is it absolutely necessary? Let’s break it down and see how it all works.
What is an EIN?
An EIN, or Employer Identification Number, is provided to you by the IRS. This number is very important for your business as it will be the primary ID through which you file your taxes and perform other duties to get your business up and running.
Do I Need an EIN?
When starting a business that is not a sole proprietorship, meaning that you are starting an LLC or Corporation, or if you plan on hiring employees, then you will need an EIN. Additionally, this number is necessary for your business if you run a non-profit company.
Here are some of the primary things you can do with an EIN:
- File business taxes with the IRS
- Open a business bank account through a merchant bank
- Apply for business licenses through your city, county, and state
- Hire employees
How Do I Apply?
Fortunately, provided that you have all of the necessary information for the paperwork, it’s not too difficult to get an EIN. You can apply via fax, mail, or online. Once you have submitted your documentation, it’s easy to check the status of an EIN by calling the IRS directly or checking their website, IRS-EIN-Tax-ID.com.
Ultimately, getting an EIN should be the first step on your path towards opening a new business as it will make everything else so much easier (and legal, too).