Does a Sports Teams (community) need a Tax ID (EIN)?

Most community sports teams will eventually need a tax ID. An informal sports team that simply meets and plays games will not. But a sports team that collects membership dues and fund raises, and hires employees (such as coaches), is going to have to have a tax ID. A tax ID is also known as an employer identification number (EIN) and it’s necessary to: pay taxes, file a tax return, open a business bank account, hire individuals, and pay payroll taxes.

Sports teams can get an EIN when they are officially created, and they should do so immediately. An EIN only takes an hour to get online, and it will make the process of getting bank accounts, permits, and licenses possible. A sports team may start out as casual but is going to need to structure itself and acquire an EIN if it starts bringing in money or paying out money. A community-owned sports team isn’t just good for community and social organization, but it’s also usually a non-profit organization that can gain tax-exempt status.

Apply for a Non-Profit Tax ID
Apply for a Non-Profit Tax ID

 

Written by Maurice Mallory

Gov Easy LLC is an Authorized E-File Provider and helps clients obtain Federal Tax ID Numbers from the IRS. We are a business-to-business (B2B) application assistance and filing service and are not affiliated with the IRS or any other federal or state organizations. We do not provide legal, financial or other professional advice. We are not a law or an accountancy firm nor are we affiliated with either. Users are able to obtain a Tax ID number on their own by working directly with the IRS, but they will not be able to use the streamlined application process or engage with e-mail support.