Using the right address for business purposes like obtaining an Employer Identification Number (EIN) is important for compliance and professionalism. Here are your options and some considerations when choosing an address for your EIN.
Address Options for EIN
You cannot use a P.O. box for your EIN. Instead, consider the following:
- Use a mailbox with a commercial street address for flexibility if your business location changes.
- Use the address of your registered agent, lawyer, CPA, or even your home, checking the requirements for banking and licensing.
- Rent an office space which shows legitimacy but consider the monthly costs if you’re just starting out.
Pricing for a P.O. Box: Expect costs to vary. For example, in Los Angeles, it’s $20 to $50 a month.
Physical Address vs. P.O. Box: Having a physical address affects bank accounts, insurance, and taxes. It also affects customer perception, legal requirements such as the CAN SPAM Act, and services that require a physical address like Google My Business.
Receiving Packages: To receive packages, use the PO Box Street Address format, combining the PO Box number with the post office street address.
Considerations and Compliance
- Privacy and the professional persona of the business.
- The legitimacy questioned by customers if using a P.O. Box.
- Complications with certain delivery services like UPS and FedEx, which may require a physical street address.
- Renting a UPS Mailbox or Virtual Office Mailbox for public-facing addresses, such as on Amazon.
- The importance of maintaining consistency across all your business documents when using your business address.
FAQs on EIN Usage
- What is an EIN used for? It’s a federal tax ID for tasks like tax filing, paying employees, and opening bank accounts.
- Can you use a virtual address for your EIN? Yes, as long as it fulfills the necessary requirements.
- What if an EIN is incorrectly assigned to you? Contact the IRS immediately to avoid complications.
- Difference between EIN and State Tax IDs? An EIN is for federal purposes, while state tax IDs are for state-level tax compliance.
It’s crucial to do your research to understand the proper use of business addresses and EINs to prevent issues in the future.