You should have received an Employer Identification Number (EIN) if you registered your company with the IRS. This special nine-digit number serves as your company’s tax identification. You could be asked for verification of your EIN for a variety of reasons, including when opening a bank account, requesting a loan, or submitting tax returns. To obtain documentation of your EIN from the IRS, you must know the following.
You can ask the IRS for an EIN verification letter to get documentation of your EIN. The letter will attest to your EIN, your company’s legal name, and the address connected to your EIN. The letter can be ordered online, by phone, fax, or mail. However, keep in mind that only businesses with a principal place of business in the United States or U.S. territories are eligible to use the online method.
Contact the Business & Specialty Tax Line at 800-829-4933 to make a phone request for the letter. Your business name, address, and EIN must be provided. The IRS representative will subsequently offer you the letter of verification over the phone or via mail, as appropriate.
Form SS-4, which you would have submitted to apply for your EIN initially, must be filled out if you would prefer to request the letter by mail. From the IRS website, you can download the form and mail it to the address listed there. The address on the Form SS-4 is where the letter will be delivered.
The usual guideline regarding the maximum number of EINs is that each company organization should only have one EIN. There are, however, exceptions if your business structure consists of many organizations, such as a parent company and subsidiaries.
You might be unsure of how to pay yourself if you establish an LLC. As an LLC owner, you have a few options for how to pay yourself, including drawing money from the business’s revenues or receiving a salary as an employee. Remember that your method of self-pay will have an impact on how your LLC is taxed.
While creating an LLC has several advantages, such as limited liability protection and management freedom, there are some drawbacks as well. One drawback is that LLCs could be taxed more heavily than other business forms like partnerships or sole proprietorships. Additionally, compared to other business forms, creating and managing an LLC may require more paperwork and costs.
Finally, take note that a single person may hold an LLC. These are referred to as one-member LLCs. The LLC is viewed as a disregarded entity in this instance, which means that the owner’s personal tax return must include the LLC’s revenue and costs.
In conclusion, obtaining your EIN’s proof from the IRS is a simple procedure. An EIN verification letter can be ordered online, by phone, fax, mail, or mailed to you. Unless there are many entities operating under the same corporate structure, you should only have one EIN per business entity. Although creating an LLC has some drawbacks, it can be a great alternative for many small businesses. As an LLC owner, you have a few options for paying yourself.