If your company is simply doing more business, you do not need to apply for a new EIN. However, there are several situations that will require you to apply for an EIN, whether it is your first one or a new one for an already established company.
When a Sole Proprietor Needs an EIN
While sole proprietors aren’t required to have an employer identification number, there are some cases in which it does become a requirement. If you decide to form a partnership with someone or to incorporate your business, you will need an EIN. Of course, if your company grows enough that you need to hire employees, an EIN is important to ensure you are hiring legally.
When Established Companies Need a New EIN
Sometimes a company that already has a tax ID number, such as a Wisconsin EIN, needs to apply for a new number. This happens if the company changes its business structure or obtains a new business chapter from the secretary of state. In addition, a company will need a new EIN if it merges with another company and forms a new corporation or brings on a subsidiary that needs to be incorporated.
How to Apply for a New Federal Tax ID Number
Applying for a federal tax ID number is simple when you visit he IRS-EIN-Tax-ID website. You can fill out the application 24 hours a day. Simply choose your business type and answer the questions about yourself and your company. In just a few minutes, your application will be on the way. Depending on when you submit your application, you could hear back within an hour. Those who don’t receive a response the same day receive it on the next business day.
Find out more about obtaining a new EIN for your freelance business or established company. IRS EIN Tax ID Filing Service is ready to help. Contact them today.