An S-Corporation is just one type of business form. There are many others that are somewhat similar, such as an LLC or C-Corp. As with those types of business models, an S-Corp will almost always employ people to run the business, have a business bank account and involve other elements that require an employer identification number.
The Basics of Business Models
When you know what is an S-Corp, it helps you to better understand why an EIN is needed. Essentially, an S-Corp uses an organized group of people to run a business. It has shareholders and is a more complex business than a sole proprietorship. Because of this, this type of business is never run by just one person and always has employees, which means it automatically meets the requirements for an EIN.
An S-Corp EIN enables your company to pay its employees and handle all related tax matters. Basically, it keeps you legal.
Getting an EIN
Once you know the answer to the question do I need an EIN, then it is time to file for one. You can apply for an S-Corp EIN with the IRS, but a quicker and less complicated way to file is with us at GovDocFiling. We are a professional service provider who specializes in helping you file paperwork to handle all the different legal aspects of starting a business, such as getting an EIN.
We take the hassle out of the process by streamlining it. With an easy form, you can enter your information and get the ball rolling. We handle the rest of the process and can often get your EIN back to you within 24 hours. So, whether you are filing for an S-Corp or apply for a C-Corp EIN, we ensure things move along quickly.
There are so many different aspects of starting a business. You can easily get weighed down by all the paperwork involved. Let us help take some of the pressure off you by handling your EIN application. Get started right here.
S-Corporations, also called S-Corps, are corporations that pass corporate income, losses, and debts through to their shareholders. A shareholder then reports income and loses on a personal tax return, thereby avoiding “double taxation,” which is what makes S-Corporations distinct from regular corporations, among other things.
An Employer Identification Number (EIN) is a tax ID number issued by the Internal Revenue Service (IRS) for various tax purposes. This nine-digit number is unique to a single business entity.
Do you need an EIN for an S-Corp?
While an S-Corp is not legally required to have an EIN for tax purposes (partnerships and traditional corporations must), it’s a good idea to get one anyway, because EINs are needed to achieve several business objectives you will undoubtedly wish to pursue with your business.
For example, not all S-Corps will have employees, but the second you hire one you’ll need an EIN to establish payroll.
Here’s a list of important reasons why you should apply for an EIN:
How to Apply for an EIN
Applying for an EIN number is very simple. You can apply online, by fax, or even on the telephone. The preferred method is online, which only takes a few minutes. Typically, you should have your new tax ID within a day of applying for an EIN, and in some cases you may have it within a few hours.
Once you’ve obtained an EIN, you’ll be able to start doing all the things listed above, and you’ll be prepared to manage your S-Corp and obtain S-Corp forms legally and efficiently.