Top 5 Things to Consider When Applying for an EIN in Chicago
Starting or running a new business in Chicago requires some crucial steps before you can begin operating3 min read
Starting or running a new business in Chicago requires some crucial steps before you can begin operating. Before your business can do anything legally such as hire employees, apply for a loan, or simply set up an account with a bank you will need an Employer Identification Number, more commonly known as an EIN. Knowing the right information before applying for your EIN can save you a great deal of stress and time.
An EIN is a nine-digit number issued by the IRS to identify each business entity’s tax obligations. It is essentially the mark of an employer, and an essential step in forming a legitimate business. In this article, we will provide an overview of the five most important things to consider when applying for an EIN in Chicago.
Economic Conditions
The economic conditions of your business are paramount when applying for an EIN. Even if you think they are irrelevant, it is important to be up to date and aware of the current financial conditions of your business in order to ensure that you are in compliance with the IRS standards. For instance, do you have employees and contractors and have you made an effort to understand the complexities in registering for payroll taxes? Do you know if you need to be registered for sales tax? It’s important that you are aware of the regulations surrounding these relevant economic conditions before you apply for an EIN.
Type of Business
The type of business you are forming is a large factor in determining the kind of EIN you will need. Some types of boosinesses, such as a non-profit, require specific EINs that differ from other business entity types. Others, such as a corporation, require additional steps to getting the EIN. Each type of business has a different filing requirement. Knowing the type of your business will make it much easier to apply for the right kind of EIN.
Location of Business
Your business location is also essential when it comes to gaining an EIN. Depending on the type and size of your business, you may be required to file with the Department of Revenue of your state as well as the IRS. The requirements of each depend on the type and location of your business. Knowing the area where your business operates can help speed up the process of gaining an EIN.
Business Name
Your business name should also be taken into consideration when applying for an EIN. The name listed on the EIN application must match the name you have registered with your state; any discrepancies may delay the process. It is important to double check that you have registered your business correctly.
Legal Assistance
Last but not least, you will want to ensure that you receive adequate legal counsel when applying for an EIN in Chicago. This is especially important if you’re a non-profit or a large business. Additionally, since the rules and regulations regarding EINs may differ from state to state, it’s important to work with experienced local legal professionals. UpCounsel, is a network of experienced lawyers which is a great option for Chicago businesses in need of legal representation.
Applying for an EIN is an extremely important step in forming a business, and it can be an incredibly daunting process. Having the right information on hand before you start the process can save you a great deal of time and stress. Knowing the five key considerations outlined above can significantly help in the process of applying for an EIN in Chicago.
Topics:
