Page Nav





Hover Effects


Gradient Skin

Breaking News


Does Your Business Need An EIN?

Majority of the businesses need to have an EIN, and they need to show their EIN on any annual tax returns, statements, and other...

Majority of the businesses need to have an EIN, and they need to show their EIN on any annual tax returns, statements, and other related documents containing tax payments of their employees, members or shareholders. IRS form SS-4 is used while obtaining Employer Identification Number from the IRS, which can be obtained from the SSA office or from online. Your business tax account will get established with the specific information that you provide while filing an EIN application. It is important that you use your EIN in connection with your business activities only and not as an alternative for your individual Social Security Number (SSN)

Contents of SS-4 Form
SS-4 form for obtaining business EIN has many questions relating to the type of business entity, particular reasons for the business to apply for EIN and the specific third party designee name that the business is authorizing to receive the entity’s EIN. It is highly recommended that you take the assistance of reputed third party designee like federal EIN application, which provides easy-to-use and faster online EIN application form submission service and expedited service. The SS-4 form provides the business to choose the exact type of identity of the business from various options such as sole proprietor, partnership, corporation, personal service corporation, church or church-controlled organization, Estate, trust, Non-profit organizations, and others.
You need to file for an EIN application if your business comes under any one of the following categories. 

New Business
The new businesses started by you need to have an EIN to provide a necessary report about employment taxes or give tax statements to the tax lawyers if you are having employees or plans to hire employees in future for your business.  You need to fill in the SS-4 form with relevant employee details such as the highest number of employees expected to be hired in your business in the corresponding year and their expected tax liability in a full calendar year. 

Changed Type of Organization
It is necessary for you to obtain an EIN for your commercial entity if either the legal character of your business is changed or there is a change in the ownership of your business. For instance, you may want to change the present structure of your existing partnership business to a sole proprietorship or a single owner business to partnership business. In such cases, you necessarily need to apply for an EIN by specifying the new type of organization in the SS-4 application form to file taxes and submit yearly tax statements of the changed type of business.

EIN application is necessary if you have purchased an existing business entity, which does not have an existing EIN. In the SS-4 EIN application form, you need to provide the exact date that you acquired the particular business along with specific details such as the principal activity of the acquired business. You can choose from various options given under the principal business activity category such as construction, Real estate, manufacturing, Healthcare & social assistance, Rental & Leasing, Finance & insurance, and others.