What Happens If I Get an EIN and Never Use It?

Opening a business bank account and filing taxes are just two examples of the many business-related tasks that require an EIN (Employer Identification Number). You might question if there are any repercussions if you obtain an EIN but never use it.

First off, it’s crucial to realize that obtaining an EIN does not automatically transform you into a legal corporate organization. It merely gives you a special identification number for tax purposes. Your personal credit rating or tax obligations won’t be impacted if you never utilize your EIN.

However, you could need to revoke your EIN if you received it with a specific intent, such as starting a business, but never actually carried it out. This is due to the possibility that the IRS will conclude you are simply not filing taxes because you have no income, which could result in penalties and fines.

You must write the IRS a letter outlining your reasons for no longer needing your EIN in order to cancel it. The whole legal name of the organization, its EIN, the justification for the request, and the signatory must all be included in this letter.

Let’s now answer the pertinent queries. Is an EIN number required to open a business account? Many banks will request an EIN when creating a business account, even though it is not necessary. This is due to the fact that it enables them to locate the company and confirm its legality.

You can check the Wisconsin Department of Financial Institutions website to find a registered agent if you live in Wisconsin and need one. To handle this for you, you can alternatively use a registered agent service.

You must submit a registration form to the Wisconsin Department of Financial Institutions in order to register a DBA (Doing Business As) in Wisconsin. The name and address of the business, the DBA name, and the type of business are all required on this form.

The last document that confirms the existence and status of a company registered in Wisconsin is a Wisconsin certificate of status. The Wisconsin Department of Financial Institutions is the place to go if you want this paper.

Getting an EIN but never utilizing it will not have a negative impact on your credit score or tax liability, to sum up. To avoid fines and penalties, you might need to cancel your EIN if you acquired it for a specific purpose but never utilized it. Additionally, when opening a business account, having an EIN can be useful. If you reside in Wisconsin, the Wisconsin Department of Financial Institutions can help you locate a registered agent, register a DBA, and acquire a certificate of status to confirm a business entity’s existence and status.