Need a Tax Identification Number?
A Tax Identification Number or TIN is an identifying number used for tax purposes in the United States. It may be assigned by the Social Security Administration or by the IRS. A business need a Federal Tax Identification Number or Employer Tax Identification Number, so that they can maintain their own image or entity in the market. It is to be noted that, the tax ID number could not be transfer in case of the transferring of any business. If the structure or ownership would be changed then a new tax ID number is required for the business. But above all you have to collect the relevant information to get an EIN.
As a general rule of thumb, nearly any business that offers goods or services for sale, that are taxed in any way, must get a business tax ID number. If the state your business is located in taxes personal services, or if you are required to collect sales taxes on purchases made, you will most likely need a tax ID number. As mentioned above, many agencies and institutions you deal with will require either a personal social security number or a tax ID number. Almost any business that has employees and/or pays any kind of taxes will need a business tax ID. Generally, you should not worry about whether you are required to have a tax ID, you should just assume you do and take the steps to obtain one. It’s simple and easy to get so why not, right?
