S-Corporations offer tax flexibility among traditional corporations through a special election designated by the Internal Revenue Service (IRS). After establishing a corporation, shareholders can file Form 2553 to become an S- Corporation, which enables the shareholders to avoid double taxation. To do this, you’ll need a tax ID, or EIN. This is just one of several benefits for filing for an EIN for S-Corp.
Other Benefits of Filing an EIN
You will need to apply for an EIN for S-Corp even if you decide you’d rather remain a traditional corporation. All corporations, including S-Corporations, require what’s commonly called a federal tax ID, or Employer Identification Number (EIN).
EINs allow shareholders to perform essential business tasks:
While it is not mandatory to apply for an EIN for S-Corp, the benefits for filing for an EIN for S Corp certainly outweigh the burden. Filing for an EIN for S-Corp can be tedious and confusing if you’re unfamiliar with the process. However, online filing has made applying for an EIN faster and easier.
Don’t Wait to Apply for Your EIN for S-Corp
The benefits for filing for an EIN for S-Corp will present themselves as you grow your business. EINs can take up to two weeks to be added into permanent record. Don’t wait until you need to file a return to obtain this important tax ID number.
Apply for an EIN for S-Corp online today and you can start using your new EIN the next business day!