There are a lot of potential business owners who are interested in getting an EIN but they are not sure if they would need it. If you are not too familiar with this, an EIN is something that you would need for filing taxes and for reporting the progress of your business. Those who have businesses will require this.
Are you a sole proprietor? These are some of the reasons why you would need to get an EIN:
- You would need to have a Virginia EIN if you want to hire employees.
- You have a retirement plan.
- You would like to purchase a previously owned business that you would like to operate on your own.
There are some people who get this in order to file for bankruptcy. You have to know the various reasons to get an EIN. If you are convinced that you need it, you should start knowing how you can get it.
Some people would opt not to get an EIN because they know that it is not required. They can also use their SSN if in case they just want to start their own business without hiring any employees. These are a couple of reasons why getting an EIN is still better compared to using your SSN:
- There is a bigger chance that you will become a victim of identity theft if you use your SSN. There are some thieves who stole the identity of other people in order to get tax refunds and sometimes steal in the stolen identity’s name. Remember that you need to provide the SSN or EIN whenever you interact with customers.
- Your role as a contractor will be more established. If you want to show that you are serious about your business, you need to use an EIN instead of an SSN. There are some potential business partners who will not take you seriously.
It is best that you verify EIN number once you get it. There are some people who lose it because of different reasons. You can have it sent through email or through phone. If you are a sole proprietor or you just want to show that you are a business owner, getting an EIN will be ideal.