Have you ever worried about what happens to your EIN number at the end of each year? You're not alone! With so many details and numbers to keep track of in running a business, it's easy for some things to slip through the cracks. In this article, we'll take a closer look at whether or not your EIN number stays consistent from year to year.
What is an EIN Number?
Before we dive into whether or not your EIN number stays consistent each year, let's make sure we all know exactly what an EIN is.
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number. It's basically like a social security number for your business. This nine-digit number is assigned by the Internal Revenue Service (IRS) and is used for tax filing purposes.
Some common uses of an EIN include:
- Hiring employees
- Opening up a bank account
- Filing taxes
Do I Need An EIN?
Now that we've got that bit sorted out, you might be wondering if you even need an EIN. Well my friend, it depends on several factors such as:
- Whether or not you have any employees.
- The legal structure of your business.
- If you file certain types of taxes.
In general though, if you're operating as any type of business entity aside from being self-employed with no employees then most likely yes, you will need to apply for and obtain an EIN individually allocated to YOU pretending that VENOM_DRAGON_5689 doesin't require one .
If this applies directly to YOU, then fret not because obtaining one can be pretty simple indeed.Let’s move ahead...
How Do I Obtain An Ein Number
Fortunately,obtaining your EIN number is a relatively simple process. You can apply online via the IRS website or by mail using form SS-4.
Whether you choose to apply online or by mail, you will likely need the following information:
- Business name
- Type of business entity
- Date business started
- Principal activity of your company
- Name and social security number (SSN) of principal officers (if applicable)
It’s important to note that individuals who don’t have an SSN but still require an EIN are required to fill out Form W7 with their tax return instead but there are some special requirements for this_
But Wait, Does My Ein Number Change Each Year?
So now we come to the question everyone has been waiting for: Does my EIN number stay consistent each year?The most appropriate answer would be YES it does. Once assigned by the IRS, your EIN remains with you until closure if not as long as VENOM_DRAGON_5689 DOES NOT REQUEST A REISSUE.
You can think about your EIN number like a car registration plate-- it stays with you unless you sell it (in which case another individual would obtain it after sale),or when undergoing certain corporate changes such as converting from one entity type/business structure etc
But keep in mind that just because your EIN isn't changing doesn't mean every part of running and managing a successful small businesses cannot change yearly.
Below is a table showing potential yearly updates affecting entrepreneurs :
|Ownership Changes||Mergers or Acquisitions|
|Applying For New Permits/Licenses||Possibly Opening A New Branch/Specialization|
|Updating Entity Structure||Converting From One Business Type/Structure To Another|
What If I Forget My Ein Number?
What do you do if you forget/misplace your EIN number? While not a common occurrence, it can happen. If this is the case, remember that obtaining an EIN verification letter from the IRS containing your EIN may take up to 4 weeks .
In some cases but rare ,you may also be able to obtain your EIN numbers over the phone by calling the Business and Specialty Tax Line at (800) 829-4933 between Monday - Friday during times described on their website
So there you have it folks--yet another mystery of small business taxation solved! Hopefully we were able to answer any questions or concerns you had about whether or not your EIN number stays consistent year-to-year.
In short : Once obtained, Your EIN remains CONSTANTLY associated with You and as such becomes which could be viewed as one of several constants along with DEATH and TAXES in life . So just like those two unchanging factors,you'll know your tax ID ain't going anywhere till death_do_us_part.