An employer identification number (EIN) is a unique identification number that is assigned to a business entity so that it can easily identify by Internal Revenue Service. EINs are unique, nine-digit numbers issued by IRS. It is primarily used to report employment taxes.
You can apply for an EIN in various ways and now also apply online. Apply for this is free and applications are available on the IRS website and easily submit electronically. A business must be located in the US or US territories must need EIN for an easily run business. Like social security numbers, EIN never expires and is never reissued to another business.
EIN for businesses:
Once your business is legally established in the USA, you can apply for EIN and the IRS will use your company EIN to track the taxes you are required to pay.
If you are not a USA citizen and you are located outside the USA but you want to do business in this country, then you need to go through the appropriate step to get your EIN and report your earnings. If you do not have ITIN or SSN, you can use EIN instead. Additionally, if you are import goods into the USA you will need ITIN or SSN if you don’t have one then you can use your EIN. This number will also help you from U.S. Customs and Border Protection.
Here are few reasons how EIN will help you.
- When you are operating your business as a partnership or corporation.
- IF your business has employees.
- You file any type of following tax return Excise, Employment, etc.
- You are importing goods to the U.S. for sales on a marketplace such as Amazon. Custom requires an EIN when goods valued over.
Some benefits:
- Help in Business taxes: As we know certain kinds of businesses need EIN to file taxes. So what happens if you do not have an EIN on tax-paying day, then you have to fill out some paper to inform the IRS. If you forget to do this type of work then IRS might have not accepted your filing, and you may face penalties for late return. You also help in a certain type of tax deduction like such as home office deduction for business, with this you have a chance to decrease IRS audit, If you have EIN.
- Prevention of identity theft: You also know about this thing, that is EIN is an effective way to prevent you from identity theft. With EIN you separate your personal finances from business finances. If you have your EIN that you don’t need to provide your personal SSN to your clients and vendors, you simply provide your EIN in use. With EIN you can keep your SSN private.
- Add reliability as a freelancer: For freelancers and independent contractors, losing one client may have become a big loss if you deal with a big company. When you deal with the client. You have to provide SSN or EIN to them, So that they provide you 1099 form.
EIN adds more reliability and signifies that you have a serious business, opposed to something is just doing side gigs. With EIN, you told the IRS and the world that you’ve got a business, not a hobby.
- Easy the business lone application: EIN speeds up the process for applying for a business loan. Many lenders don’t require EIN unless you have the necessary business permit or licenses.
The important point is that most lenders require the applicant to have a business bank account with a certain amount of deposit. To get a business account, you need an EIN.
So if you want to obtain an EIN number then you can contact any CFO or Company registration.
Are you want to invest in the U.S. stock market? Yes, you can invest in U.S. stock. If you want to explore the global stocks market beyond the Indian stock market. Then U.S. market is the best starting point for you.
Investing in the U.S. stock market permissible under RBI Liberalized Remittance Scheme (LRS).
If we compare the U.S. market and the Indian market. Then we find the U.S. market continuously outperforms the Indian market in the last 10 years. During this decade the U.S. DOW returned around 196% while Indian SENSEX returned 150%. So if you find a stable stock market in the world to invest money then investing in US Stocks is the best option.
