Business Taxes 101
One of the most confusing aspects of owning a business is taxes. As a new business owner, you want to take the proper steps to ensure that you are operating your business the right way. Five major types of business taxes are: (1) corporate franchise tax, (2) employment (withholding) tax, (3) excise tax, (4) gross-receipts tax, and (5) value added tax (VAT)Business taxes are always an aspect of worry , tension and conflict . They are necessary to be done but at the same time peron feel tiresome and confused that how it should be done. If the proper route or way is not adopted , it will cause you to worry for the whole time during your business.
The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification.
What is an EIN number :
For business owners, an EIN number, or tax ID number, is used to identify your company and is the number referenced when filing taxes. It can be easy to learn how to apply EIN online, allowing you to do the work from home or the office!
What to do before applying?
Before applying for the EIN, it is always preferred that you check whether your organization has been formed legally or not. Almost all the organizations can have their tax-exempt status automatically revoked, provided they have failed to file a necessary return or notice for a period of three years consecutively. So, while applying for EIN, make sure your organization is legally formed and the clock would start ticking on the said three-year period.
Applying for an EIN Online:
One of the best ways to apply for an EIN number online is to use the Gov Doc Filing site. Here, business owners can choose their type of entity and fill out an application for a tax ID number online. The process is simple. Choose your entity type, like an LLC or sole proprietor and then begin filling out the application for your number.
The site processes your application in a very quick time frame, which means you will have your new EIN number in no time. Once you have your number, you are ready to take care of tax needs or fill out paperwork where an EIN is needed for identification purposes.
The LLC Forms and other options for EIN number applications are easy to complete. If you do run into difficulty, the Gov Doc Filing site offers 24/7 support to assist you in filling out the forms needed for your EIN number. The assistance will ensure that you fill out the forms correctly and have what you need to successfully operate your business.
A tax ID number, or EIN, is essential to identifying your entity as well as providing you with the proper protocol to handle the tax needs of your business. With the help of online forms and assistance, you can easily get your business incorporated and set up with a new EIN number.
Benefits of applying :
- Banks and lenders use an EIN to open bank accounts or establish credit in the name of the business
- Business owners can apply for local permits and specialty licenses
- Hire employees and establish a payroll system
Use an EIN in lieu of a Social Security Number on various forms or documents.
These are just a few of the benefits for filing for an EIN for LLC. Limited liability companies are a popular type of business entity because of these benefits, but especially because of their tax flexibility.
How long it will take :
Once the Internal Revenue Service (IRS) receives your company’s EIN, it takes up to two weeks for the number to be logged in their permanent record. Don’t wait to apply for an EIN for LLC. Even if you don’t think you need one, it’s better to have this important tax ID and not need it, than to need it and not have it available in time to use on tax returns.