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Do You Need An Employer Identification Number?Monday 04/02/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Do You Need An Employer Identification Number?

 

Before hiring an employee, a business owner must have a registered Employer Identification Number (EIN) with the IRS, and you can obtain a free one on-line through their website, http://www.irs.gov.  This becomes the permanent Federal taxpayer identification number for that entity.  EIN’s are given to businesses under the following circumstances when answering yes:

 

1.         Do you have employees?

2.         Do you operate your business as a corporation or a partnership?

3.         Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?

4.         Do you withhold taxes on income, other than wages, paid to a non-resident alien?

5.         Do you have a Keogh plan (retirement)?

6.         Are you involved with any of the following types of organizations?

            *Trusts, except certain grantor=owned revocable trusts, IRAs, Exempt Organization Business income tax returns

*Estates

*Real estate mortgage investment conduits

*Nonprofit organizations

*Farmers’ cooperatives, plan administrators.

            *Plan administration

 

The name and identification number entered as those of the “principal officer” should be of the individual or entity that controls, manages, or directs the entity and the disposition of the entity’s funds and assets – not those of a person who temporarily serves as an officer, and should also be a check signer.  If you need to update the responsible party for your entity (principal officer, grantor, owner, trustor, member, partner), you are able to update it through the “Updating Incorrect Business Entity Information” page on http://www.irs.gov.  Sole Proprietors are able to utilize an EIN instead of being required to provide a social security number on forms, such as a W-9, which will be discussed later.

 

۩ Key Point

Should your business’ tax filing status ever change, i.e. sole proprietor to LLC, you must apply for a new EIN and close your account.  If you choose to not start your business or close your business, you will also need to close your account, by writing a letter to the IRS, Cincinnati, OH, 45999, and state the reason why you wish to close your account,.  If you have a copy of the EIN Assignment Notice that was issued when it was assigned, include it when you write.  Otherwise include the complete legal name of the entity, the EIN, and the business address.

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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