Apply for EIN Online - Small Business Tax ID Filing from Vancy's blog

Even if you are not required to do so, you should think about getting a Federal Employer Identification Number (EIN) if you own and run a business. An EIN, also known as a federal tax ID number, is similar to your company's social security number. An employer identification number is used by government, financial, tax, and regulatory agencies to identify a business as a distinct entity, just as your social security number is used to identify you as a distinct individual by financial and other institutions. A smart way to distinguish between your personal and business obligations and liabilities is to obtain and use an EIN to identify your business to the Internal Revenue Service and the various federal agencies that regulate businesses.

A business entity's Employer Identification Number (EIN number) is also known as a Federal Tax Identification Number.

An EIN is a unique identifier assigned and linked to the individual owner of a specific business. It is issued by the IRS as a tax identification number. Employers, sole proprietors, corporations, partnerships, non-profits, government agencies, and some other types of business entities all make use of EINs. Sole proprietors who have been using their social security number as both a personal and business identifier can create a crucial layer of legal separation and privacy between their personal and business affairs by using an EIN to identify their business. For business transactions, using an EIN rather than your social security number prevents access to your personal information.

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Even if your company's name, focus, or location changes, having an EIN gives you the added benefit of maintaining a single business identity. As a result, owners of businesses are able to take advantage of recent tax, financial, or regulatory advantages. Your EIN will follow your business through the inevitable alterations to its appearance and direction that come with the definition and expansion of a business as long as neither the ownership nor the operating status of the business change.

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Even if you change your business's name, address, or add more locations, you can still use the same EIN. However, a change in ownership necessitates obtaining a new EIN due to the fact that an EIN is issued to the specific owner of a business rather than the business itself. If the status of your business changes, you must also get a new EIN; for example, if you start your business as a partnership or if you incorporate your company. When a company files for bankruptcy or sets up a profit sharing or retirement plan, it must also obtain a new EIN.

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