As a new business owner, you have a lot of paperwork and forms to fill out, but one of the most important things you can have is an employer ID number, or an EIN. The reason it is so critical is that you have to have it to file your business taxes and have employees. If you’re a sole proprietorship, then you don’t necessarily have to worry about it, but for any other type of business this number is crucial. As such, let’s go over the EIN application process so that you can see what is involved.
Figure Out Your Entity Type
Before you can even think about getting a number, you first have to determine what kind of business you are going to start. This will determine a lot of things regarding your paperwork, so it’s imperative that you figure this out first. The kinds of entities are:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Non-Profit Organization (NPO)
As we mentioned, a sole proprietorship doesn’t always need an EIN since you are not hiring anyone else, but it can be helpful if you don’t want your business taxes to be tied to your social security number.
Fortunately, with modern technology you can apply for this number over the internet, making the whole process much more simplified. If you go to www.govdocfiling.com, all you have to do is fill out the right forms and submit them along with the requisite fee, and you should be ready to go with your tax ID application.
When Will I Get My EIN?
In many cases, you can obtain your number within a few hours, or if you pay a separate fee, you can get it within one hour. At most, it usually takes a day or so depending on when you file and how accurate your information is. Overall, you should be able to use your EIN almost immediately after filing.
In the end, www.govdocfiling.com makes the application process as easy and painless as possible, which is exactly what you need when starting your new business.