October 14, 2018, Comment off

Do I Need a Federal Tax ID?

Every individual who forms a company in Delaware needs a TAX ID to start their business, open a bank account, and hire a person. Federal Tax ID, in other words, Employer Identification Number or EIN, is compulsory for business entities and used by IRS (Internal Revenue Service) to show tax responsibilities in the IRC (Internal Revenue Code).

Each business type has different tax responsibility. These business types are sole proprietorships, partnerships, corporations, and LLC (Limited Liability Companies). At Delawarefile.com we provide EIN service for only $49. We can provide it in 5 to 7 business days. You can order with your company formation or separately. The price is the same whether you are a non-resident or U.S. Citizen.

Business entities are needed to apply for EIN – federal tax ID. In the following cases, they don’t need:

– Sole Proprietorships if they do not have employees

– LLC if it has just a single member without employees

In the situations mentioned above, they may apply for a Social Security Number (SSN) to determine their tax purposes.

By using EIN, the following business objectives can be done like opening bank accounts and applying for credit in the name of the company. Furthermore, an EIN can be needed to apply for state licenses according to business type.

Here is the list of business entity types that must get a Federal Tax ID – EIN

– LLC

– Trust

– Estate of a Deceased Individual

– NGO – Non-Profit Organization

– Partnership

– Corporation

– S-Corporation

– Personal Service Corporation

– Church Controlled Organization

How to obtain an EIN?

The easiest way to obtain an EIN is to apply for it online. It only takes a few minutes and gets processed within 24 hours.

When you get your EIN, you are in need to keep it as well as your Social Security Number. As we have mentioned before for many times, your EIN has a nine-digit number, and they will remain with your business in perpetuity if the business is not needed to get a new EIN.