Does my Food Business Need an EIN?

Posted by Damian Roberti on

What Is An EIN Number?

Each employee is given a unique number called an Employee Identification Number (EIN).

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An EIN number is similar to a Social Security number, except it is used by the government, primarily the IRS, to maintain track of all corporate entities in the United States. If you want to create a company bank account, pay your employees, or file taxes, you'll need an EIN number. It's also known as an FEIN (Federal Employee Identification Number), an FTIN, or a Federal Tax ID. which we strongly suggest.

Is an EIN number required for an LLC?

Simply said, if you have an LLC, you should obtain an EIN number as well. An LLC will need an EIN if it has any employees, according to the IRS... While there are exceptions to these rules, having an EIN has a lot of advantages, even if your firm doesn't require one.

We include an EIN number as part of our regular packages, even though most of our rivals don't. More information on why can be found here.

What Are the Benefits of Having an EIN? 

The ability to really run your business is the primary benefit of acquiring one. So, to call it an advantage is an understatement because you simply cannot operate your business without an EIN. However, once you've got one, you'll be able to:

Employees are hired and paid.
Open a bank account, get a line of credit, and put your money to work.
Maintain a clear distinction between your personal and professional finances and possessions.
Register for state taxes and file business taxes.
Protect yourself and your personal information from identity theft.

Is it necessary for me to have an EIN?

If I'm a sole proprietor, what should I do?

You don't have to pay staff as a single owner, and you shouldn't have to bother about opening business accounts or submitting business taxes. But do you really need an EIN number? We'll go back to the IRS, which says that "a sole owner without workers who does not submit any excise or pension plan tax returns does not need (but can receive) an EIN." The lone proprietor uses his or her social security number (rather than an EIN) as the taxpayer identification number in this case. However, you'll need an EIN if you want to apply for a pension or an excise tax plan. So getting an EIN number may be a good idea in any case.

What Is the Process for Obtaining an EIN?

Now that you've learned what an EIN number is, it's time to learn how to obtain one. The procedure of obtaining an EIN is simple and free. Choose from three possibilities and go with the one that feels most natural to you.

Application over the internet You can apply for an EIN by going to the IRS website and filling out an online application. This is the quickest option to get an EIN because it will be granted to you as soon as your information is approved at the end of your online session.
Faxed application: By faxing Form SS-4 (PDF) to the relevant fax number, you can apply for an EIN. The IRS states that after it is determined that your LLC requires an EIN, your new EIN will be faxed to you within four business days.
Mail-in application: A completed Form SS-4 can also be mailed in. Your new EIN will be mailed to you once it has been determined that your LLC requires one.

How Much Does Getting An EIN Number Cost?

There are no expenses related with obtaining an EIN, as we briefly noted before. This is usually one of the first steps that a business owner takes before forming an LLC or corporation, which may be a costly and time-consuming process. We're here to assist you if you want a speedier, less expensive experience where you don't have to deal directly with the IRS (who doesn't?).

While we cannot assist you in developing a business strategy or hiring personnel, we can assist you in getting to that point. Our mission is to assist small business owners in transforming their businesses into legal corporations. Creating an LLC or a corporation secures your personal assets, allows you to file business taxes, and shields your company from liabilities. After you've obtained your EIN, the next step is to form a legal business entity.

What Is My EIN Number and Where Can I Find It?

If you've already established a business and are filling out loan applications, filing tax returns, or creating a business bank account, you already know that you'll need your EIN. What is the procedure for obtaining your EIN number? Although it should be quite straightforward to find, here are your three best possibilities.

Your letter of EIN confirmation

This may seem self-evident, but look for the confirmation letter from the IRS's original EIN application in your inbox or files. There will be a place for you to enter your EIN number. You may have received the confirmation via email, fax, or letter, so look for it elsewhere if you don't see it in your inbox.

Other Government Documents

Starting a small business can be a difficult task.

Even if you can't locate your IRS confirmation letter, you can still obtain your EIN number. Checking old tax returns, tax notices, your business bank account, and any business licenses or permissions you've been awarded is the easiest approach to do so.

Contact the Internal Revenue Service (IRS):

The most difficult of the lot, but if all else fails, you can always contact the IRS for an EIN number. The IRS maintains a dedicated helpline for this called the Business & Specialty Tax Line, however this should only be used as a last resort. Expect to be kept waiting for an extended period of time.

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