As a business owner or a person in charge of running an estate, you may be asking yourself, do I need a TIN? As you startup a business or you’re considering starting up, there are a lot of things that go into that planning and getting the business running. Determining whether a TIN is a necessary item is just one of those. Here are a few tips to know if you need to apply for federal tax id number before you get other aspects of your business running.
Will You Have Employees?
If you plan on ever having employees for your business or even if you have staff at your home, you’re going to need a TIN. This will alleviate potential tax filing issues later on and makes it easier for your staff members as well when they file taxes.
Business Banking
Whether you need to open up a business line of credit or you need a banking account with your business name on it, you’re going to need a tax id number as part of your paperwork. This is a crucial piece of paperwork you will need before opening up accounts in your businesses name so you can keep the business assets separate from your personal ones.
Change Business Types
If you decide to incorporate or form an S-corporation, it is important to have an IRS EIN tax id number as well. This is needed any time you change the type of business entity you have as well.
Obtaining a TIN is easier than you might think. With the online application at IRS-EIN, you can have your tax id number the same day you apply. It’s an easy process and the government assistants are standing by to help you along the way to make sure everything is in order.
Whether you’re a small business owner or you run an estate, you need to look into getting a TIN for your tax purposes.