Why Do I Need a Tax ID Number?

First: Everyone needs a tax ID number, and everyone has a tax ID number. Individuals usually have a social security number (SSN) or individual taxpayer number (ITIN). These numbers are used so that they can file their taxes, and everyone has to file their taxes. But these numbers alone aren’t always enough. Some people need another tax ID number: a Federal Tax ID Number, also known as an Employer Identification Number.

If you start a business with more than one individual, you will need an EIN. You will also need an EIN if you are an employer, as this tax ID number is used to file payroll taxes. You will need an EIN if you have to pay excise taxes, such as for alcohol, tobacco, or firearm sales. And you will need an EIN to do things like open business bank accounts.

EINs allow you to have a business that is a separate taxable entity from yourself. It can also be used for certain types of investments for the same reason. An EIN can be acquired online through an EIN service in about an hour.

Apply for a Tax ID (EIN) Number
Apply for a Tax ID (EIN) Number

 

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.