Individuals have an identification number that they use on all of their tax forms so that the Internal Revenue Service (IRS) is able to identify them. This number is your Social Security number. You need to include your Social Security number on forms given to an employer, as well as on tax returns. The IRS can then use your SSN number to track all of your tax forms.
If you plan on starting a business or hiring workers for your company, however, you may not wish to use your social security number on the necessary tax forms associated with these activities. Instead, you may wish to get a tax number that your company or professional organization can use. An experienced San Jose business startup lawyer at the Law Offices of Mike Ross can assist you in determining if you need a tax number and can help with the process of obtaining the number from the Internal Revenue Service. Call as soon as possible to speak with an attorney so that you can ensure you fulfill all of your tax obligations.
How to Get a Tax Number
A taxpayer identification number (TIN) is available to individuals, and is obtained by applying for a Social Security card. Form SS-5, Application for a Social Security Card must be completed and you must provide proof of U.S. citizenship.
If you want to apply for a separate tax identification number for your company, the process is different as your business will not be given a Social Security Number. Instead, your business organization will request and obtain an Employer Identification Number (EIN). An EIN can be obtained by many different types of businesses. Typically, you should obtain an EIN if:
- You have employees, even if you operate your company as a sole proprietorship.
- You are operating, or intend to operate, your business as either a corporation or as a partnership.
- You file an employment tax return.
- You file an excise tax return.
- You file an alcohol, tobacco and firearms tax return.
- You withhold taxes on non-wage income that is paid to a non-resident alien.
- You are involved in a non0profit organization
If you meet these criteria, you may visit the website of the Internal Revenue Service to get a tax number. A “responsible party” must apply for the EIN for a business organization. The responsible party has the authority to control, manage or direct the business organization applying for the EIN. The responsible party must have authority over the disposition of the business organizations’ funds and assets.
If you meet this criteria, then you can click the “Apply Now” on the bottom of the IRS website. You will need to supply information like the name and tax ID number of the owner(s) and/or officers of the corporation as well as provide other details about the business that you are getting the tax ID for, such as the business name. The EIN can be obtained right away after completing the Internet form. The EIN will need to be provided on tax documents, as well as on incorporation papers if you decide to incorporate your business.
An experienced San Jose business startup attorney at the Law Offices of Mike Ross can help to determine if you need to get a tax number and can assist throughout the process. Call today to learn more.