Personal services corporations are special types of corporations in which the company’s owners themselves provide at least 20 percent of the company’s own services. Accountants, lawyers, and medical professionals (and other clinicians) often establish personal services corporations. The founding partners may provide 20 percent of the company’s services, and other members may provide the rest. The chief advantage to this is taxes.
To get a tax ID application, a personal services corporation can work with a third-party tax service. This tax service will be able to get an EIN released to them within an hour, provided all the information is accurate. Since getting a tax ID/EIN can be a complicated process, being able to complete it quickly is important. Many companies cannot do much until they receive a tax ID, because they have to be able to show that they are registered with the government, for the purposes of employment, bank accounts, and more.
There are other ways: the corporation can also print out the application and mail it in. Unfortunately, a mailed in application can take up to six weeks, during which time the services corporation will be left without their ID.