If you are looking to start a business, then you do need an employer identification number (EIN), irrespective of whether you will have employees or not. That’s because most financial institutions need it before they advance loans to your business. You will also need it when filing tax returns. It’s more like asocial security card, for businesses, which explains why you should take the application process seriously. To help you out with this process, here are 5 tips to applying for an EIN number for your business.
When looking to apply for an EIN number, don’t waste money paying third parties to do the job for you. All you need to do is visit the IRS website and watch a simple step-by-step video on how to do it. This will simplify the process for you, and save you lots of valuable time, and money.
Before you embark on applying for EIN number, make sure that you have all the necessary documents ready. That’s because the application process is designed to be one-off, which means you can’t start it, stop midway, then continue later. In essence, if you don’t have the needed documents, you will be forced keep repeating the process. This is not only tiresome, but also wastes lots of time, time that you would use in other aspects of your business. To avoid this hassle; research on the required documents, then have them ready when you start the application process.
The IRS website provides you with a definition of terms that you will encounter in the EIN application process. Be sure to go through each and every term that you don’t understand, before starting the application process. The last thing you want is to misconstrue what a term means, and fill the form wrongly. This can waste lots of your time, since you would have to restart the process all over again, once you discover the mistake. Besides, it can complicate your taxes later along, and land you in problems with the IRS.
Applying for an EIN number means that you will have to provide lots of personal information, information that can be quite useful to identity thieves. That’s why when applying for this number, make sure you do so on a highly secure network. If possible, avoid doing it on a public network, where you could be sharing the network with scammers. Make use of internet resources to learn more on how to secure a network, or ask an I.T professional for help.
Once you have followed all the above steps and done your application, counter check your information to verify that it is correct. This will not only save you time when doing the application, but also money in case you get into problems with the IRS, for filing the wrong information.
[Top Image – blog.CorpNet.com]
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