Do I Need An EIN If I’m Filing For A Sole Proprietorship?

If you are looking to get your business off the ground, you will want to file as a sole proprietorship. There are plenty of benefits to filing as a sole proprietorship, and you can enjoy them throughout the life of your business. Complete your application and you will quickly get a response.

What Goes into the EIN Application?

The IRS EIN can be the first step towards business ownership. This nine-digit number is similar to a social security number used by the IRS to identify your business as a tax-paying entity. You only need to submit one application, and you will be able to use your number right away.

You only need to have a business located within the United States or have a taxpayer identification number to apply for an EIN. A taxpayer identification number can be a social security number or an ITIN.

The Benefits of Being in a Sole Proprietorship

While it is not required for you to secure a sole proprietor Tax ID number, there are several benefits. You can use your social security number for your business, but many businesses obtain an EIN to protect against identity theft. Also, when you hire employees, it is required to obtain an EIN.

The sole proprietorship is company that has only one owner that is not registered as a corporation or LLC. Setting your business up as a sole proprietorship is quicker and does not require as much paperwork. If you would like to start your sole proprietorship, you simply need to submit an EIN application.

There are several steps you will want to take when it comes time to starting your business. For a streamlined experience, make sure to complete your EIN application online. The EIN application will help you secure financing and pay your taxes during the year.

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