Applying for an EIN in Chicago: Steps, Benefits, and Legal Counsel
Securing an EIN in the Greater Chicago Region: Essential for Establishing a Legal and Financial Identity3 min read
For businesses in and around Greater Chicago, applying for an Employer Identification Number (EIN) from the Internal Revenue Service is an essential step in establishing a legal and financial identity. An EIN, often referred to as a Tax ID number, is the primary means of identification for businesses employing staff, filing taxes, and managing their finances. It is important for business owners to understand the application process, the benefits of an EIN, and how local legal counsel can help.
An Employer Identification Number is nine (9) digits in length and is used to identify a business entity for federal tax purposes and to open bank accounts in the name of the business entity. It may also be used by landlords, brokers, lenders, and financial institutions to check your business’s creditworthiness. Applying for an EIN is a necessary step in registering a business name with the appropriate government agencies and in setting up a legal business entity.
The Internal Revenue Service (IRS) issues EINs for businesses as well as individual taxpayers. In many cases, even if there are no employees, you may still need an EIN if your business engages in any type of business transactions, such as those regarding taxes or banking.
Business owners in the city of Chicago and the surrounding area should follow these steps to apply for an EIN.
Steps To Obtain An EIN
1. The first step is to gather the necessary information to complete the application. This includes the type of business entity, size of the business, name of the business, social security numbers of the owners or managing agents of the business, and any other information requested by the IRS.
2. The second step is to complete the IRS Form SS-4, also known as the Application for Employer Identification Number. It is important to note that this form cannot be completed online, but must be filled out and sent via mail to the IRS. It can be obtained either online from the IRS website or from local business offices.
3. The third step is to submit the form to the IRS, either via regular mail or via email at the department’s dedicated email address. It is important to note that the IRS does not accept applications submitted via fax or electronically through its website.
4. The fourth step is to wait for the IRS to process the application and issue the EIN. In most cases, the process of obtaining an EIN can take up to 90 days or more.
Benefits Of An EIN
There are several key benefits associated with obtaining an EIN for a business in and around the Chicago area. First, it will provide legal protection for the business from liability and bankruptcy claims. Second, it will facilitate the filing of taxes and help to ensure timely payment of taxes and other related fees. Third, it streamlines the process of opening a bank account in the business’s name. Fourth, it assists with setting up payroll accounts for employees. Finally, it simplifies the process of obtaining bankruptcy protection, should the need arise.
Legal Counsel for Businesses in Chicago
Whether your business is just starting out or is already well established, it is important to have legal counsel who understands the local regulations and can provide guidance on matters related to setting up a business. To this end, UpCounsel is an excellent solution for business owners in the Chicago area who need legal services, as their experienced lawyers have an average of 14 years of experience in the business world. UPCounsel features detailed profiles of the online legal services, which include client ratings and reviews of their work, so businesses can be sure they are getting quality legal advice.
Topics:
