The good news is that getting an EIN is a fairly simple procedure, and filling out the online application usually just takes a few minutes. You will get your EIN right away after submitting your application. It could take up to four weeks to get your EIN if you opt to apply via mail or fax.
Yes, you must still file a tax return even if your company had a loss. Whether a firm is profitable or not, the IRS compels it to file a tax return. However, you can submit a “zero return” if your company had no revenue or outlays for the year.
A company that has stopped operating but hasn’t been formally dissolved is said to be inactive. This indicates that although the company is still technically in existence, no business operations are currently being carried out. You can still be required to file specific tax forms, such a final tax return or a return to indicate the sale of assets, even if your business is dormant.
Which is preferable: an LLC or a sole proprietorship? Your particular business requirements and environmental factors will determine the answer to this inquiry. The simplest and most typical business structure is a sole proprietorship, yet it provides no protection from personal liability. In contrast, an LLC offers its owners personal liability protection but necessitates additional paperwork and formalities. The choice between a sole proprietorship and an LLC should ultimately be determined on your unique needs and objectives.
Can I start a new business with the same EIN? No, you cannot open a new business with the same EIN. Every business entity, whether it be a corporation, LLC, partnership, or sole proprietorship, needs to have a distinct EIN. You must apply for a new EIN if you are beginning a new business.
Finally, getting an EIN is a simple process that can be completed online in a matter of minutes. You must still file a tax return even if your business was a loss. Some tax forms may still need to be filed even if your firm is dormant. You cannot use the same EIN for a new firm; instead, you should base your choice between a sole proprietorship and an LLC on your unique needs and objectives.