How to get a Business Tax ID
So, you’re thinking of starting a business? First get your Business Tax ID.
Small business owners make up a large percentage of the population. They are needed for buzzing and thriving communities. Now, more than ever, is the right time to start your small business! The first step is getting a Business Tax ID.
What is a Business Tax Id?
The Business Tax ID is a nine-digit number issued by the Internal Revenue Service. It identifies a business entity for tax purposes. The Business Tax ID is also referred to as an EIN or Employer Identification Number. You can think of it as a social security number for your business.
You will use your Business Tax ID for things like banking, issuing tax documents and filing your company tax return. As your business grows, you will be required more and more to provide your Business Tax ID. The Business Tax ID supplies tax information about the entity it represents.
Qualifications for a Business Tax Id?
In order to apply for a Business Tax ID, the principal business must be located in the United States or one of the U.S territories. This is because the sole purpose of a Business Tax ID is the administration of tax information as it pertains to the United States. If the business is located in area not managed by the Internal Revenue Service, there is no need for a Business Tax ID. Consider where you plan to conduct most of your business to determine whether or not a Business Tax ID is needed for your company.
The person applying for the Business Tax ID must have a valid taxpayer identification number (ssn, itin, ein). He or She must be a documented citizen or resident of the United States. This qualification funnels the applicants eligible to receive Business Tax ID. For that reason many small business owners are able to receive a Business Tax ID immediately. You can apply for your free Business Tax ID here.
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Who needs a Business Tax Id?
According to the Internal Revenue Service, if the following qualifications exists, you are required to have a Business Tax ID.
(Be sure you’re hiring the right tax accountant)
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