Читать книгу J.K. Lasser's Small Business Taxes 2018 - Barbara Weltman - Страница 15

For individuals on personal returns, the federal tax identification number is the taxpayer's Social Security number. For businesses, the federal tax identification number is the employer identification number (EIN). The EIN is a 9-digit number assigned to each business. Usually, the federal EIN is used for state income tax purposes. Depending on the state, there may be a separate state tax identification number.

If you are just starting your business and do not have an EIN, you can obtain one instantaneously online using an interview-style application at www.irs.gov (search “EIN online”) or by filing Form SS-4, Application for Employer Identification Number, with the IRS service center in the area in which your business is located. Application by mail takes several weeks. An SS-4 can be obtained from the IRS website at www.irs.gov or by calling a special business phone number (800-829-4933) or the special Tele-TIN phone number. The number for your service center is listed in the instructions to Form SS-4. If you call for a number, it is assigned immediately, after which you must send or fax a signed SS-4 within 24 hours.

If you change your business entity (e.g., from a sole proprietorship to an S corporation), you usually need to obtain a new EIN. You can determine whether you need a new EIN at www.irs.gov (search “do you need a new EIN?”).

SPECIAL RULES FOR SOLE PROPRIETORS

Because sole proprietors report their business income and expenses on their personal returns, they may not be required to use an EIN. Instead, they simply use their Social Security number for federal income tax reporting.

A sole proprietor must use an EIN if the business has any employees or maintains a qualified retirement plan. A sole proprietor may need an EIN to open a business bank account (it depends on the institution). An EIN can also be used in place of a Social Security number by an independent contractor for purposes of Form 1099-MISC reporting (a consideration today with concerns about identity theft). A sole proprietor should use an EIN as a way in which to build a business credit profile in order to qualify for credit without relying entirely on the owner's credit history and personal guarantee.

A single-member limited liability company, which is a disregarded entity taxed as a sole proprietorship (unless an election is made to be taxed as a corporation) for income tax purposes, must obtain an employer identification number and use the number issued to the entity (and not the EIN issued to the owner's name).