Application For Employer Identification Number
Employer Identification Number (EIN) is a 9 digit number code that is used to identify a business entity. The number is sometimes reffered to as Federal Tax Identification Number.
Application for Employer Identification Number is required to obtain an EIN, EIN Numbers are also issued to entities that are required to pay withholding taxes on employees.
Other entities that are required to have this number include corporations, Limited Liability Companies that have more than one member,states and even non profitable organizations that hire employees. After a business has been issued with EIN, the number will be used during the whole period that the business will be in existence.
EIN has many uses to a business and therefore one should make it a manadatory process that should not be ignored during the period of establishing a business or a company.
The number can be used alongside other tax fillings to enable a business establish accounts with other vendors and also open business checking accounts. The only type of business that can be exempted from getting this number is a sole proprietorship that doesn’t have employees.