An EIN known as employer identification number or Federal Employer Identification Number (FEIN) and also Federal Tax Identification Number. This significant nine-digit number is unique because it is assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of specifically identification.
If you planning on seeking financing or any type of business credit it’s a good idea to understand why you need an EIN .
At some point you will need an EIN if you operating any business.
When Your Business Needs An EIN
The IRS has guidelines for when a business needs to apply for an EIN. Which your business will need an EIN if you answer “Yes” to any of the following questions;
Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators
So if you can answer yes to any of the above questions your business needs an EIN right now.
Having an EIN your business could qualify for business credit today!