Why You Should Understand about Employer Identification Number (EIN)?

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Why You Should Understand about Employer
Identification Number (EIN)?
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• When your business planning, incorporation
  and start-up pains get over, all paperwork is
  done and everything is set for you to start your
  new business, Federal Tax Identification Number
  stares you in the face. Well, what is this
  Federal Tax Identification Number or Employer
  Identification Number (EIN)? Why you should
  understand it? You know that every year, each
  business entity is required to file tax returns.

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• However, you are not the only person doing
  business, you need to get your identification
  number which distinguishes your business from
  others in the market.
• EIN is just like a Social Security Number
  (SSN) that will help you to run your business for
  a long-term. This is a nine digit unique
  numerical identifier with a format XX-XXXXXXX,
  assigned by the Internal Revenue Service (IRS),
  specifically identifies your business.

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• This number is used by business entities,
  government agencies, estates, partnerships,
  non-profit organizations, sole proprietors and
  employers for the purpose of reporting taxes.

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• When you need to have an EIN?
• Dealing with employees
• Operating your business as a corporation or a
  partnership
• File tax returns for employment, alcohol, tobacco
  and firearms
• Having a Keogh plan

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• Involved with organizations like trusts
  estates, non-profit organizations, farmers'
  cooperatives, real estate mortgage investment
  conduits, and some more.
• Purchasing an ongoing business
• Having a qualified retirement plan

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• How the IRS uses this EIN?
• IRS uses this number to recognize taxpayers,
  which are required to file a variety of business
  tax returns. EIN ensures that the information of
  a taxpayer is properly routed to their files,
  records and the IRS other authorities for
  taxing apply payments to the taxpayer's account
  properly and issue refunds to the right taxpayer.

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• Make sure, you use your EIN on all the items
  you send to the IRS as well as the Social
  Security Administration.
• EIN is the permanent number for your business
  as like SSN and can be used for your business
  needs like
• Opening a bank account
• Applying for business licenses
• Filing a tax return by mail

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• Even if youre planning to start your
  part-time business, EIN will help you to boost
  your online home based business and will be one
  step ahead in a successful future.

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• How you can apply for an EIN online?
• You can apply for an EIN by filing IRS Form
  SS-4. If you are looking for a company that can
  help you apply for EIN in USA, Register Company
  Forms is the best source that can help you obtain
  your EIN quickly and efficiently. Within a single
  business day they can provide your federal EIN
  electronically with the IRS.