Obtaining an EIN in Chicago for Your Business
Obtaining an EIN is Essential for Chicago Business Owners3 min read
If you’re a business owner based in Chicago, obtaining an Employer Identification Numbers (EIN) is essential for you to move forward with the operations of your business. An EIN is a unique nine-digit identification number issued by the Internal Revenue Service (IRS) to business entities operating in the United States. This number is used to identify and report taxes for your business. You need an EIN for a range of activities such as filing tax returns, opening a bank account, or applying for a business license.
Having a legal counsel that understands the local regulations, tax structure, and IRS requirements in the state of Chicago is important to ensure the successful application of an EIN. There’s no one-size-fits-all approach to understanding complex legal regulations, and it is even more difficult if you are trying to do it all by yourself. It is typically a better decision to go with experienced lawyers who comprehend the local regulations to guide you through the process. This article covers the legal basics of an EIN in Chicago, and why you should consider an experienced business lawyer to help with the process.
Understanding the Need for an EIN
Having an EIN is crucial for any business in order to operate legally. Business entities with a majority of employees should obtain an EIN so they can properly withhold and deposit the taxes that they owe to the federal government. The number also helps the IRS and other government organizations to track the activities of your business. Businesses are required to provide an EIN to entities they transact with, such as banks and customers.
You should preferably consult an experienced attorney who is familiar with the tax structure in Illinois before applying for an EIN. A business lawyer will also be able to help you understand the intricacies of obtaining an EIN such as the documents you need to complete the application process, the timeline you will need to adhere to, and any reporting requirements you need to be aware of.
What Kinds of Entities Need an EIN in Chicago?
Most business entities in Chicago needs to obtain an EIN. This includes non-profit organizations, partnerships, corporations, joint ventures, estates, trusts, etc. Generally, almost all business entities, regardless of size, need an EIN to perform various activities such as opening a bank account, applying for a loan, or filing taxes. The IRS also outlines certain events and processes that under its guidelines would require an entity to obtain a new EIN.
Other Legal Requirements for an EIN in Chicago
Similarly to other states, Illinois has certain legal and filing requirements for businesses to obtain an EIN. This includes submitting a variety of documents and forms to different government organizations depending on the type of business entity. These documents could include documents such as registrations with local and state authorities, partnership or incorporation agreements, and tax forms. Additionally, there could be additional requirements on a variety of federal, state, local, or industry-specific levels.
Why Consider an Experienced Business Attorney
In the state of Illinois, and particularly in Chicago, there are several complexities to the tax structure, filing requirements, and the application process of obtaining an EIN. Even if you are well-versed in the tax structure and legalities of the state, having an experienced lawyer by your side who has been through the process countless times due to their experience with similar cases can increase the likelihood of successful application. You will also have greater peace of mind knowing that you have a legal expert to contact for any legal queries that could arise during the process.
UpCounsel: Experienced Lawyers on Demand
The attorneys on UpCounsel’s network are highly experienced lawyers with an average of 14 years of experience. Our lawyers have an extensive knowledge of the regulations in Chicago, and can provide you with high quality, cost-effective legal services for your business.
Additionally, UpCounsel offers online profiles of our lawyers which display client ratings and reviews of their work. You can rely on their experience and reliability when you reach out to them.