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Also, if you are incorporating or filing as an LLC, this is also a good time to get it. Keep in mind you will also need a new business bank account if you originally opened one as a sole proprietor.

What is an Employer Identification Number (EIN)?

It connects tax records to individuals or corporations. The number is sometimes referred to by an old term: TIN, for taxpayer identification number.

Why Do I Need an EIN?

A Limited Liability Company with a single owner can do the same — all taxes are paid on an individual return. Other business structures need an EIN to separate their corporate taxes from personal taxes.

How to Get an EIN and State Tax ID Number

A partnership requires an EIN when filling out distribution forms for the IRS, even though no tax is paid by the partnership itself. A new EIN number is required when a business is first started, or when certain circumstances change.

If a business is purchased turn-key and it will be operated as a sole proprietorship, a new EIN is needed. This also applies if a corporation changes status, either to a sole proprietorship or partnership. If a sole owner dies and the business is managed by their estate, the estate should apply for an EIN.

Federal Employment Identification Number (EIN) | King George County, VA

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Federal Tax ID Number

Give us a call. Essential for most businesses If your business will have employees or file taxes, you probably need a federal tax ID from the IRS. Often required for business banking Banks usually ask for a federal tax ID before opening a business bank account or line of credit. Helps shield against identity theft Sole proprietors may use a federal tax ID to help keep their own Social Security numbers private.

Apply for FEIN

What is a federal tax ID? Who needs a federal tax ID? If your business hires employees, has a bank account, or pays taxes, then you probably need a federal tax identification number. Why would a sole proprietor need an EIN? If you're a sole proprietor with employees, a Keogh plan, or you need to pay certain federal taxes including excise and alcohol, tobacco, and firearms taxes then you'll need an EIN.