Are you planning to start a new business? One of the most important things you should accomplish is getting an EIN number. When you have one, it will be easier to open a bank account, get business permits and even apply for a loan. If you are launching a new venture and are planning to apply for an EIN, check out the simple steps below that you need to follow.
1. Determine whether you would need an EIN
The first thing you need to know is whether you really need an EIN or not. If you are the sole proprietor of your small business, and you do not see yourself hiring anybody in the foreseeable future, then many would say that you will not require an EIN. But if you are going to employ workers and you would be withholding their taxes and filing tax returns, then you definitely need one. Do the application as soon as possible as an EIN is also important when you want to accomplish things like opening a bank account for your business or taking out a loan.
2. Determine how you would like to apply for your EIN
You can apply for the EIN by printing out the form from the IRS website, filling out the questions and then mailing or faxing in the form so you can get your EIN number. But if you want a more convenient way of applying for the EIN, then simply go online and fill out the form, and you’ll get the EIN number right away. If you want to choose the more convenient step, read through the next steps below for more tips on how to accomplish the online form.
3. Print out a copy of the SS-4 Form and answer the questions first
Here’s a tip for you. Even if you’re going to do the online process, print out the form first and then answer the questions. This way it will be easier for you to choose the right answer when you do the online application. It might take some time to read through the questions so it’s better to familiarize yourself with the questions so that it will be easier to accomplish. When there is too much delay in answering the questions, the EIN assistant will possibly time you out and you will have to repeat the process all over again.
4. Go to the website and fill out the application
Some of the questions that you need to answer in the form will ask you why you are requesting an EIN; you will also need to know the legal and tax structure of your business, plus a few other facts that you should know. Once you’ve answered them on the printed form, go to federal-ein-application.com and accomplish the online form while looking at the printed form that you have filled out.
5. Save the document
Before you submit the document, make sure to review all the information you have put there. When you get your EIN number, make sure to save it so that you will not have a hard time remembering what your EIN number is.
The post 5 Steps to Applying for an Employer Identification Number for Your New Business appeared first on Home Business Magazine.
Source: Home Business
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