Every personal service corporation will need to have a Federal Tax ID (EIN) Number. The method or approach you take to obtain the Tax ID (EIN) Number is up to you. The Internal Revenue Service provides for a variety of options so that you can decide what works best for you and your corporation. The key is to apply early and obtain the number as soon as possible. You want to comply with the Internal Revenue Service out of the gate and the Tax ID (EIN) Number gets you there.
Steps to Obtaining a Tax ID (EIN) for a Personal Service Corporation
- Prepare Mandatory Business Information
- Apply for a Personal Service Corporation Tax ID (EIN) Number Online
- Apply for a Personal Service Corporation Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
- Why Do I Need a Tax ID (EIN) Number for my Personal Service Corporation?
1. Prepare Mandatory Business Information
The first step in acquiring a Tax ID (EIN) Number for your personal service corporation is to ensure eligibility. In order to be eligible to receive an employer identification number from the IRS, you need to have a principal business located within the United States or one of the United States territories. You also need to have an individual applying that has a valid taxpayer identification number. Examples of this number would include their own Social Security Number or International Tax Identification Number. If you meet these criteria, you can move forward with the application.
Just like applying as an S-Corporation, you will also need to determine the responsible party of the organization. The personal service corporation needs to name a responsible party on the application for an employer identification number. The responsible party is the individual who has the ability to control all the assets of the organization. They have power and control in the event a disposition occurred or some other similar transaction. The Internal Revenue Service will only talk to the responsible party when it comes time to dealing with the personal service corporation.
2. Apply for a Personal Service Corporation Tax ID (EIN) Number Online
A personal service corporation can obtain a Tax ID (EIN) Number by going through the online application number. The online application process takes the form you need to complete and makes it all available virtually. All you need is a device with a connection to the Internet and you will be able to complete and submit everything to the IRS.
The information you submit will be in line with the mandatory business information. Naming the responsible party as well also their business information lets you allow for the IRS to validate it and return it near instantly. With the online application, you can have a Tax ID (EIN) Number in hand in a matter of minutes for your personal service corporation.
3. Apply for a Personal Service Corporation Tax ID (EIN) Number via Mail or Fax
The other methods you can use to apply for a Tax ID (EIN) Number allow you to obtain it via mail or fax. Both of these services will require more time than the online application method, but they will work just the same.
The mail method requires you to print out a paper copy of the employer identification number application form. With the form in your hand, you will complete it by filling in all of the mandatory business information. After you get everything for your personal service corporation on the form, you mail it to the Internal Revenue Service. When they finish processing, they will mail you back the nine-digit Tax ID (EIN) Number.
The fax method is similar to the mail approach in that you are printing out and completing everything on the form by hand. After you complete everything on the form, you locate the Internal Revenue Service fax number and send it over. When they validate, they will return to you the Tax ID (EIN) Number to the fax number where the submission originates.
4. How Do I Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
You have plenty of options when it comes to obtaining a Tax ID (EIN) Number for your personal service corporation. The online method is something which you should look out first, as it will be the most efficient way to obtain the Tax ID (EIN) Number. If that does not work for you, you also have the other options in terms of applying via mail or fax methods. For those that are not able to do any of these methods, you can also try calling the Internal Revenue Service to try and do the application over the telephone.
5. How Long Does it Take to Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
There are a variety of processing times to consider when applying for a Tax ID (EIN) Number for your personal service corporation. When you apply through the mail, you have to plan on waiting a few weeks before you end up with the nine-digit Tax ID Number in your hand. When you apply via fax, expect it to take a few business days at least. Applying online can allow you to have the nine-digit Tax ID (EIN) Number in a matter of minutes. The length of time will all depend on how you apply.
6. Why Do I Need a Tax ID (EIN) Number for my Personal Service Corporation?
You need to have a Tax ID (EIN) Number for your personal service corporation for tax administration purposes. To do payroll taxes, to file your own personal service corporation taxes, a Tax ID (EIN) Number is a requirement. You will need to have the number if you intend to do any type of business activity such as opening up a business checking or savings account, taking out a loan, etc. Virtually any activity you do as a personal service corporation will require a Tax ID (EIN) Number.
Starting off proper with the Internal Revenue Service is important for a personal service corporation. Be in compliance and get ahead of things such as business account opening requirements, tax filings, payroll tax processing, etc. With a Tax ID (EIN) Number, you will hit a lot fewer roadblocks early on it your organization’s existence.