When you are getting your business off the ground, one of the most important things you can do is to secure the IRS-EIN-Tax-ID. Over the life of your business, this number could change many times. There are many circumstances that would allow you to get a new EIN number.
An LLC will need a Tax ID number for several reasons
The LLC Tax ID number will need to be updated for several reasons. If you have formed a new LLC with a more than one owner, you can get a new number. For a one owner LLC that decides to tax itself as a corporation or S-Corporation, they will need to have their filing information updated.
Not all situations will require you to get a new EIN number. If your business changes location, or your LLC that already has an EIN chooses to be taxed as a corporation or as an S-Corporation, you won’t have to update your information.
An EIN number will serve your business throughout its life
The EIN number for your business will be important as you are trying to get your business off the ground. With the EIN, you will be able to secure financing and credit. You can hire employees, as well as file tax returns.
Applying for an EIN does not have to be time consuming. The EIN application only takes a few minutes, and if you need help, you can easily contact a trained professional. If you complete your EIN application during normal business hours, you can expect an answer almost immediately if you were approved.
When you are running your own business, the last thing you will want to do is create more headaches. Knowing when it is time to secure an EIN number will be important to the long-term health of your business.