How to Get a Tax ID Number: The Top 5 Things to Consider
When it comes to how to get a Tax ID Number, there are certain factors that taxpayers need to consider carefully3 min read
When it comes to how to get a Tax ID Number, there are certain factors that taxpayers need to consider carefully. Having a Tax ID Number (EIN) is essential to many of the financial tasks associated with operating a business, filing taxes, and more. This article focuses on the top 5 considerations for those seeking to obtain an EIN in Los Angeles.
Obtaining a Tax ID Number, or Employer Identification Number (EIN), can often be a confusing, drawn-out process, especially for those just starting out and for business owners who are unfamiliar with the ins and outs of tax law. For Los Angeles-based businesses, it can be even more challenging to navigate the complex statutes and regulations that come with getting an EIN, and having a reliable attorney on hand can make the journey much smoother.
At UpCounsel, we provide easy access to experienced attorneys who can advise on the best ways of obtaining an EIN in Los Angeles. Whether you need a one-time consultation or more long-term support, our online attorneys have the expertise and knowledge to provide guidance and ensure you understand and adhere to the prevailing local regulations. Here, we discuss the top five key things to consider when applying for an EIN in Los Angeles.
1. Be Aware of Deadline Dates
It is essential to remain aware of deadlines when filing for a Tax ID Number. Generally, the IRS provides a window of two to three weeks from the date of the business's formation or registration for the EIN to be filed. Failure to meet this deadline often results in rejection due to the close filing period.
2. Understand and Follow the Correct Process
It is crucial to understand the EIN application process before submitting. The process includes correctly filling out and submitting the EIN application, the Form SS-4. There is the option to apply online through the IRS website, which is the most efficient method, or it can be done by mail or fax.
Depending on the tax-based status of the business owner, the method of filing will change. If filing as an individual, the application must be submitted online; if filing as an organization, it must be mailed in. Filing as an organization can also take a considerably longer time to be approved and receive the EIN.
3. Understand Your Filing Rights
It is important to land on which filing rights one is eligible for before applying. Depending on the entity of the business, filing rights will differ. Understanding this and applying the correct rights is important to ensure a successful application.
4. Utilize The Help of a Legal Expert
Obtaining a Tax ID Number is a complex process that is often best-handled by a legal professional. As the process is so complex, an attorney can help to guide the entire process and ensure that all content is correct in order to reduce the risk of disapproval.
At UpCounsel, our online attorneys specialize in a range of tax-related issues and can provide reliable advice on the route you should take and offer the support you need to file a successful EIN application.
5. Understand the Tax Law Requirements
When obtaining an EIN, it is important to adhere to the various tax law requirements. Knowing and understanding the Internal Revenue Service's (IRS) requirements and having the correct documents is a key factor to due diligence.
Regularly updated information on IRS Tax ID regulations can be found on the IRS website, such as an EIN frequently asked questions page which details the relevant statutory rules, regulations, and steps to obtain an EIN.
To summarize
Getting a Tax ID Number can often be a stressful process that requires great attention to detail. There are various points to consider when obtaining an EIN, and it’s important to be aware of deadlines, filing processes, legal requirements, and the various tax law regulations.
Fortunately, UpCounsel provides easy access to experienced professionals who specialize in legal services centered around obtaining an EIN. If you are a business owner or executive based in Los Angeles, our online attorneys can ensure the application process is smooth and compliant. To find out more, or to get in touch with an expert, talk to UpCounsel today.
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