IRS Tax Issues - The Lowdown on IRS Small Business Employment ID Numbers

We meet again. Small Business and the IRS alwaysorganizations:
clash. You have small, middle class Americans in the· Estates
right corner, and the biggest collection agency there is· Real estate mortgage investment conduits
in the left corner. Who do you think has the clear size· Non-profit organizations
advantage? The only way to get ahead is to arm· Farmers' cooperatives
yourself with knowledge and make sure you don't· Plan administrators
make a small mistake.If anything above applies to you, apply for an
Employment ID Numbers: The IRS uses EmploymentEmployment ID Number.
ID numbers to identify a small business. With fewA New EIN: If the ownership or structure of your
exceptions, all businesses need one.business has changed, you have to apply for a new
The Checklist: Here's a quick checklist the IRS providesEmployment Identification Number. This doesn't apply
to help you determine if your business needs anto small changes like changing your company's location
Employment ID number.or name. It also doesn't apply if you open another
business in addition to the one you have. But if you
1. Do You Have Employees?incorporate, inherit the business, or take on a partner,
2. Do you operate the business as either a partnershipyou need to get a new EIN.
or a corporation?Getting it Done: Applying for an EIN requires you to fill
3. Do you file Excise, Employment, Alcohol, Tobacco,out form SS-4 "Application for Employer Identification
or Firearm taxes?Number." The IRS also offers services for applying for
4. Do you withhold taxes on income, other than wages,an EIN on their official website. Applying for an EIN will
paid to a non-resident alien?prevent you from getting into IRS trouble in the long
5. Are you involved with any of the following types ofrun, so make sure you get to it!