Getting Started on a Federal Tax ID Number in Chicago
Business Owners in Chicago: Filing Taxes for State and Federal Governments2 min read
If you’re a business owner in Chicago, you’re probably aware of the importance of filing taxes in both the state and the federal government. To do this, you’ll need a Federal Tax ID number, sometimes referred to as an employer identification number (EIN). Here, we’ll tell you everything you need to know about getting started on a federal tax ID number in Chicago, including what an EIN is, why you need one, and how to get one.
What is an Employer Identification Number (EIN)?
An employer identification number (EIN) is a nine-digit number that is used by the Internal Revenue Service (IRS) to identify and track businesses. Similar to a Social Security number, an EIN is used to collect federal taxes and report payroll information, among other things. An EIN is required for all entities with employees. All businesses must file a federal income tax return, and an EIN is necessary to do this. In Chicago, businesses are also required to file an Illinois income tax return, and you will need an EIN for this, too.
Why Do You Need an EIN?
The main purpose of an EIN is for the IRS’s identification and tracking of entities with employees, but they serve a second purpose for businesses as well. Having an EIN is a signifier that your business is legitimate and that it follows the rules and regulations put forth by the IRS. This is especially important for businesses that wish to open a business bank account or take out a business loan, as some banks and lenders may require an EIN.
How to File for an EIN in Chicago
Filing for an EIN in Chicago is fairly straightforward. The process can be completed entirely online in a few simple steps. The form is very simple and requires just a few pieces of information, such as your business name, address, type of entity, and Social Security Number.
Once you’ve completed the form, you will be given an additional form to fill out for the IRS. This form will require additional information, such as your business purpose, the types of activities your business does, and the number of employees. Once you’ve completed these two forms, you can expect to receive your EIN within a few days.
Seeking Legal Help for Federal Tax ID Number in Chicago
If you need legal help with filing for a federal tax ID number in Chicago, there are a variety of options available to you. Specifically, there are many experienced business lawyers who are available to help at UpCounsel. UpCounsel is a legal marketplace where you can access experienced lawyers to handle everything from one-time consultations to the creation of an entire freelance legal department. From small businesses to Fortune 1000 companies, both large and small businesses trust UpCounsel to provide high-quality legal services.
The Bottom Line
In order to legally operate a business in Chicago, you’ll need an EIN. Filing for an EIN in Chicago is relatively simple and can be done online in just a few steps. Additionally, if you need legal help with filing for a federal tax ID number in Chicago, there are many experienced business lawyers available to help at UpCounsel.
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