Top 5 Things to Consider When Obtaining an EIN Number in Chicago
The Employer Identification Number (EIN) is an important number for businesses to have in the United States2 min read
The Employer Identification Number (EIN) is an important number for businesses to have in the United States. It can help the Internal Revenue Service (IRS) identify a company for tax-related purposes and gives businesses access to certain benefits. As such, if you’re launching or running a business in the city of Chicago, you should look into obtaining an EIN. To this end, here are the five key factors to consider when getting an EIN number in Chicago:
1. Understand the Requirements
Before you can apply for an EIN number, you should understand the criteria required to receive it. According to the IRS, any Chicago business that employs one or more workers, is an organization, partnership, LLC, or corporation, or is subject to certain excise, employment, or alcohol, tobacco, and firearms taxes must have a valid EIN. If you don’t meet any of these criteria, you might not need an EIN.
2. Complete the Application
After verifying that you’re legally eligible for an EIN, you’ll need to complete the application. Fortunately, the application process for obtaining an EIN number in Chicago is straightforward. You must fill out a Form SS-4 (Application for an Employer Identification Number) online or by mail, and provide the necessary information into the form — such as business name, address, and type. After submitting the application, you'll receive the EIN from the IRS.
3. Know Your Rights and Responsibilities
Once your application is approved, and you’ve obtained your EIN, be aware of your rights and responsibilities as a business owner. As a holder of an EIN number, you’ll be required to provide the number on certain monetary transactions, like when filing taxes and applying for business loans. Also, you’ll be obliged to comply with all applicable laws and regulations, such as labor laws, employment tax laws, and reporting requirements in Illinois.
4. Work With an Attorney
While the law doesn’t require businesses in Chicago to hire a lawyer to obtain an EIN number, it’s a savvy move to do so. Each state and city has its set of rules and regulations, and things become more complex when you factor in additional variables such as hiring independent contractors, having a franchise, or having a multi-state business. As such, obtaining legal counsel from a lawyer who understands District of Columbia laws can be helpful in reducing possible legal issues.
5. Use an Online Platform
Finding the right attorney who’s well-versed in local regulations to help you obtain an EIN is not an easy task. For instance, you may not be aware that a lawyer requires extensive experience in corporate law in order to provide suitable legal advice for your business. To simplify the process, you may want to use an online platform like UpCounsel. This platform provides access to high-quality attorneys experienced in business and corporate law. Additionally, you can read client reviews and ratings to help you find the perfect lawyer for your needs.
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