Frequently asked questions

  • What do I need - ITIN or EIN number? I am a horse trainer in Canada and want to do business in the U.S.?

    According to the IRS, ITINs (Individual Taxpayer Identification Numbers) are issued to foreign nationals who have federal tax reporting or filing requirements and do not qualify for social security numbers.

    Generally, you must obtain an EIN (Employer Identification Number) if you have employees, your business is an LLC, corporation or partnership, you withhold taxes on income, or you file taxes returns for employment, excise, or alcohol, tobacco and firearms. If you pay contractors, or anyone, for services valued at more than $600 in a calendar year, you may also need an EIN. EINs are used by employers, corporations, partnerships, sole proprietors, non-profit organizations, trusts and estates.

    You may be required to obtain either or both of these tax IDs, depending on the circumstances. Depending on the state, you may also need to obtain state and local business licenses.

    CT Corporation can fully research all tax registration and licensing requirements. We offer the expertise of our licensing specialists at convenient flat rates. Get an EIN now!

  • I bought an existing business. Do I need a new EIN?
    Yes. A new EIN is essential to identifying your business for tax purposes. Using the previous owner’s EIN can lead to major problems—particularly if there were any previous tax problems, such as unpaid payroll taxes or improperly claimed credits.
  • I changed from a corporation to an LLC. Do I need a new EIN?
    Generally, yes. You typically need a new EIN when you change your business structure. CT’s incorporation experts can help you determine if this rule applies in your case.
  • I don’t have employees. Do I need an EIN?
    Yes. Much like a Social Security number, the government uses your EIN (also known as a federal business tax ID number) to identify your business. Every corporation needs for taxes, even if you don’t have employees. Additionally, banks, credit card companies, and vendors will likely demand your EIN before transactions.
  • How do I apply for an EIN?
    You can apply online or using IRS Form SS-4 (“Application for Employer Identification Number”). Either way, you’ll need to supply information about your business, including your industry type and projected number of employees. CT can help you sort through the IRS lingo to make sure your application is accurate.
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