Attaining a legal business status as a corporation, LLC, or partnership can be complicated, especially if you’re unfamiliar with the regulations in Chicago. Mobility and ease of operations are important for any business entity and acquiring a Federal Tax Identification Number (also known as Employee Identification Number or EIN) can enable you to progress without any delays caused by legal technicalities.

To help clear the air about EINs, below are answers to some of the most frequently asked questions about this crucial component of managing a legally registered business in Chicago, and how you can benefit from having one.

What Is a Federal Tax Identification Number?

A Federal Tax Identification Number (or EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify a business entity. All businesses, employers, and certain other entities that operate within the United States are required to obtain an EIN, regardless of the nature of the business or its size. An EIN is also associated with the Social Security Number (SSN) of each individual or entity that applies.

Who Can Apply for an EIN?

Below is a list of entities that can apply for an EIN in Chicago:

Sole proprietorships

Partnerships

Trusts

Corporations

Estate entities

Non-Profit organizations

State and Local Governmental Agencies and Special Taxing Districts

Certain Small Business Investment Companies

What Are the Benefits of Having an EIN?

As a business entity operating in Chicago, having an EIN can be beneficial in various ways. A few of the benefits are listed below:

EINs are necessary for businesses to open bank accounts, apply for licenses and permits, and apply for trade permits.

Employers need EINs to apply for employer identification numbers (EINs) when they hire employees.

Business entities can use a Federal Tax Identification Number as a form of identification to apply for financing and to open business accounts.

Businesses that need to register for federal or state taxes (such as sales and payroll taxes) need an EIN, as well as companies that need to apply for state business registration.

Business entities that need to submit a Chicago Business Tax return need an EIN.

What Documents Must I Submit with my EIN Application?

To register or apply for an EIN in Chicago, business owners must submit the following documents:

A copy of the corporate resolution/board minutes authorizing the filing of the EIN application

A Certificate of Good Standing from the State of Illinois

A copy of the Articles of Incorporation (or similar document)

A current ownership statement

Do I Need an Attorney to Help Me Obtain an EIN?

Chicago business owners can obtain an EIN without the assistance of an attorney, but having a knowledgeable and experienced lawyer on your side can come in handy when dealing with legal complexities. While searching for an attorney in Chicago to help you obtain an EIN, consider UpCounsel as your source for legal services, as they provide access to experienced lawyers with an average of 14 years of experience, as well as their profile ratings and reviews of recent work.

Closing considerations

A Federal Tax Identification Number is a crucial part of running a business in Chicago, and obtaining one is relatively straightforward. By familiarizing yourself with the process and being prepared with the necessary documents, you can acquire an EIN without delay and enjoy the full benefits that come with having one.

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Federal ID Number,

Chicago,

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