A Tax ID Number, also known as an employer identification number or EIN, is needed for new businesses and is often needed for Trusts. Maybe you find yourself in a situation where you need an EIN but you don’t know how to go about getting one. Today we are taking a closer look at the EIN and how to get one.
How Do You File For a Tax ID Number?
Who Needs a Tax ID Number?
If you have recently established an LLC, you need an EIN to file taxes, to put on employee’s W-2s, and to properly identify your business to the IRS. If you’ve not filed as an LLC and are functioning as a sole proprietor you can use your Social Security Number. But many people opt to register as an LLC for liability and privacy reasons.
Another instance where you would need an EIN is if you are the successor Trustee for a Trust. In most cases trust makers use their Social Security Number as their tax identification number while they are living. But after they have died, the Trust continues to live on and an EIN is needed so that the Trust can continue to file taxes each year.
File For an EIN Online
It’s a very simple process to file for an EIN online on the IRS website. Answer a few simple questions and they give you an EIN. You don’t need to hire a professional to obtain an EIN for you.
Apply for an EIN online by following this link
A word of caution, though. If you request an EIN make sure you print or save the screen that gives you your EIN. If you don’t you may find yourself on the phone with the IRS trying to sort it out later. No one wants to call the IRS for anything! It’s the phone version of going to the DMV! So, do yourself a favor and print or save that screen!
Talk to a Professional
If you’re considering establishing an LLC it is a good idea to talk to a professional before you do. An attorney can help you avoid pitfalls and make sure your business is established properly. Working closely with a legal professional can help you ensure that your business is legal and above board.
Additionally, a DIY Trust is always a terrible idea. Trusts are powerful legal contracts and in some cases once they are established cannot be changed or revoked. It is crucial to work closely with a skilled estate planning attorney when creating a Trust. You have worked hard to secure the assets that you have. It’s important to find a professional who knows the nuances and complexities of how Trusts work to make sure yours protects your legacy the way you want it to.
Anyone can request an EIN easily through the IRS website. You do not need to hire someone to do this. But it is important to consider your reason for needing an EIN such as a Trust or LLC. Involving a professional before creating those Trusts or LLCs is wise and can save you trouble down the road.
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