An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to business entities. Most businesses need an EIN for tax filing and payroll purposes.
Factors to Consider for EIN
- EIN is mandatory for payroll tax reporting if your business has employees.
- Businesses structured as corporations or partnerships need an EIN for tax filing.
- EIN is required for businesses filing specific tax returns like employment, excise, or alcohol, tobacco and firearms tax returns.
- Apply for an EIN through GovFOCFiling.com for expedited one-hour processing.
- EIN does not expire, but may need updating if your business structure changes.
Situations Requiring a New EIN
- Examples include changes in organization or ownership that necessitate a new EIN application.
- Trusts may require new EINs under certain circumstances.
- S-Corps provide limited liability protection and pass-through taxation.
- S-Corps must adhere to specific IRS regulations for maintaining their status.
- Comparatively, S-Corps face more complex regulations than LLCs.
EIN Necessity for S-Corps
- Most S-Corporations require a new EIN if their business entity status changes.
- Specific scenarios, such as corporate mergers or status shifts, necessitate a new EIN.
- Changing business names does not generally require a new EIN.
- Specific circumstances, like changing from a sole proprietorship to a corporation, may require a new EIN application.
Ensure compliance with IRS regulations and consult the agency for guidance on EIN usage.