After you apply for EIN and now have your own number, what do you do with it?
As you know, the EIN is a prerequisite for operating a business in the US. Consider this your businesses social security number. For sole proprietorships, the EIN is waived since the business owners simply use their SSS number in lieu of the tax identification number. An exemption to this rule is when you file excise tax returns or pensions.
There are many ways you can use the tax ID after you apply for EIN:
Open a bank account – You can now open a bank account using your EIN instead of using your personal account.
Apply for a credit card – You can apply for a credit card for your company using your EIN.
Take out a loan – You can now separate your business and personal account. If you apply for an EIN online, you don’t have to tie in your personal finances with your business operations.
Expand your business – If you are a sole proprietorship and your business is growing, you need to apply for an EIN to hire workers. The EIN is important to make reports, conduct an audit, or file documents at the IRS for the payroll.
Apply for a business permit – Business permit applications require the EIN. Not only that, the business number is also required for a seller’s permit or a zoning permit.
When you apply for an EIN, it’s now easier to file your tax returns. In the same vein, when need more employees, you can easily change the nature of your business by informing the IRS about your intention to hire. Once it’s reflected in the system, you can make deposits and settle payroll tax without any problems.
You can apply for EIN online although you have to wait for a couple of weeks before the IRS will have your file in its system. You can’t make transactions using your EIN until then. Should you have more questions, https://www.govdocfiling.com/ can help you obtain your number without any hitch.