When applying for a Federal Tax ID number, it’s important to make sure all needed information is submitted correctly. It’s also important to be certain of your business entity classification as this will have effects for your business in the future. That’s where we come in. Working with our highly experienced Cary, NC accountant will help to ensure you’re applying correctly and choosing the right classification for your small business. After all, success begins with a healthy starting point!
It’s a nine digit number number assigned to businesses by the U.S. IRS and is used to identify your company to several federal agencies that will regulate your business. This is required for all businesses operating within the U.S.
All businesses, excluding Sole Proprietorships are required to obtain a Federal Tax ID number. This is one of the key pieces of documentation that nearly every business is required to have in order to stay in good standing with the regulating bodies. The Federal Tax ID will be used frequently when completing important business documents so it is important to have it as well as to keep it safe.
Yes. A Federal Tax ID is solely for Federal reporting. A State Tax ID will still be required to satisfy your state tax reporting. Your business will need state ID’s for any state that the company has offices or employee. This might mean that a single business has several state ID’s.
Only one Federal Tax ID will be needed.
There is no fee to apply for a Federal Tax ID, however you may be required to pay for entity classification at the time of application. This can vary depending on when the business registers for a Federal Tax ID as well as the kind of business that is registering.
If you are in need of a Tax ID number, fill out the IRS form SS-4 by clicking here. We do recommend speaking with a Cary CPA prior to submitting your form. It is best to make sure that your documentation is recorded properly from the start. If a change is needed, it could take weeks before the change is accepted.
Don’t deal with the anxiety of wondering whether or not your federal tax ID application was filled out correctly and fully or if you chose the right business entity classification. Position your business properly so it’s ready for future success by consulting with a qualified CPA firm.
Contact our office by completing the online contact form below or calling 919-420-0092.
*Information presented on this website should not be construed as formal accounting or tax advice or the formation of an Accountant/CPA-client relationship. Additionally, any email sent to C.E. Thorn, CPA, PLLC at the email addresses set forth in this website will not create an Accountant/CPA-client relationship.