A tax ID number (EIN) is crucial for taxes, banking, and payment.
Without an EIN, your business simply can't get off the ground. It’s necessary to file federal tax returns and to receive a tax ID number from most states.
Aside from taxes, you need an EIN to open a business banking account or credit card. And when it comes to invoicing, many companies won’t pay you without an EIN on file.
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How do I apply for an EIN?You can apply online with CT Corporation or use 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 Corporation can help you sort through the IRS lingo to make sure your application is accurate.
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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 tax 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 thoroughly 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.
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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 to pay taxes, even if you don’t have employees. Additionally, banks, credit card companies, and vendors will likely demand your EIN before transactions.
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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 Corporation’s incorporation experts can help you determine if this rule applies in your case.