Looking to start a new business? You might need to
apply for an ein also known as a Federal Tax Identification number. It is a 9-digit number that the US Internal Revenue Service uses to identify businesses filing tax returns. An EIN number helps you to be on top of your game by filing your federal tax returns in confidence and correctly.The
EIN number Louisiana are like social security numbers because they are unique and assigned to a business once and for all. Some businesses that need the Federal tax ID number include Limited Liability companies, corporations, partnerships and sole proprietorships that have employed people.Check out the reasons below why someone may need to apply for an IRS-EIN-Tax-ID.
Maintaining privacy: Having a social security number guarantees the privacy of your customers especially if you are offering personal services. Lack of EIN numbers can make some withhold 28% of your payment because they are not sure about the safety of their information.
Prevention of identity theft: The use of social security numbers prevents identity theft. Your EIN number cannot be used by thieves to file tax returns.
Credit purposes: Having an EIN helps you to have structured credit especially for a limited company or corporation. This makes it easy for lenders to establish your creditworthiness to determine if they can give you a loan. The use of an EIN number is also effective in determining individual purposes.
Business checking account: An EIN number makes it easy to open a business checking account to help differentiate between business and personal ventures.
Business credit card: You can use your social security number to get a credit card for your business. You can talk to small banks in your neighborhood to process a credit card for your business too.
