Many of the entrepreneurs, starting an online business are faced with the dilemma of whether their business requires an Ein number or not. Starting an online business involves a lot of planning and looking into tasks like designing a web page, promoting the site and learning the techniques of ecommerce. But most entrepreneurs forget the important task of registering for the Ein number and obtaining the other licenses and permits to carry on the business.
A Virginia Ein number is a unique nine digit number that identifies a business organization. It is the same as a social security number for individuals. The EIN number is issued by the IRS. If your online business deals with a product or service that comes under the tax category, you have to obtain a Tax Id number.
Generally sole proprietorships do not require a Virginia Ein Number, if they do not hire employees. But most of the entrepreneurs opt for getting one because it offers numerous benefits. An EIN number helps to establish the credibility of the business and also to safeguard their personal information, as sole proprietors are required to submit their Social security number in the absence of EIN number.
Here is a quick checklist to determine whether your online company needs to file for a Virginia Ein number or not. Apply for an EIN, if your answer is in positive for any one question.
- Do you hire employees in Virginia?
- Is your business registered as a LLC, corporation or partnership?
- Does your business deal in Alcohol, Tobacco or Firearms?
- Do you file Employment or Excise tax returns?
- Do you have a Keogh plan?
- Does your company withhold taxes on income of the employees?
- Do your business transactions involve trusts, estates, real estate mortgage investment, mot for profit organizations and any other organizations that pay taxes?
The process of applying for a Virginia Ein number is simple. The application is available on the website of the IRS and is available free of cost. Entrepreneurs need not submit details like the registered name of the company, name of the responsible party, registered address of the business, purpose and nature of the business, mailing address and valid Email and phone numbers in the application form. They will receive an EIN number within an hour of filing the application.