Do you run a nail salon? Are you hiring your first employee? Thinking about opening a business bank account or applying for a loan for your nail salon? In all these situations and many others, you need to obtain a tax ID number called an Employer Identification Number (EIN). Whether you want to apply for a tax ID (EIN) number for a nail salon online, through the mail, or using a fax machine, the process is relatively straightforward. Here is what you need to know.
Steps to Getting a Tax ID (EIN) Number for a Nail Salon Business
- Prepare Owner Information
- Apply for a Tax ID (EIN) Number for a Nail Salon Business Online
- Apply for a Tax ID (EIN) Number for a Nail Salon Business via Mail or Fax
- Why Do I Need a Tax ID (EIN) Number for a Nail Salon Business?
- How Do I Get a Tax ID (EIN) Number for a Nail Salon Business?
- How Long Does It Take to Get a Tax ID (EIN) Number for a Nail Salon Business?
When you apply for a tax ID (EIN) number for a nail salon via mail or fax or online, you want the process to be as streamlined as possible. To avoid hiccups along the way, you should spend a few minutes preparing your information before you start to apply.
Luckily, most of the information is relatively straightforward, and you should easily be able to find the details you need. The EIN application requests the following pieces of information:
- Legal name of your nail salon
- Trade name of your nail salon (if different)
- "Care of" name (in most cases, this is the business owner)
- Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) or EIN of the responsible party
- Name of anyone you want to designate to receive information about your nail salon’s EIN
- Mailing address of the nail salon
- Street address if different from mailing
- Business structure of the nail salon, such as sole proprietorship, partnership, s-corporation, corporation etc.
- Country where incorporated for nail salon chains based outside of the United States
- Reason your nail salon needs a Federal EIN (FEIN) Number
- Number of employees
- Estimated payroll tax for the year
- Ending month of your accounting year
- Date you opened or acquired the nail salon
Once you have all the details listed above, you can apply for your nail salon EIN online. With an online application, you can apply from your nail salon, your home office, or anywhere you have access to the internet. To make the process as easy as possible, consider working with a tax ID obtainment service that can guide you through the online application.
If you don’t have access to the internet, you can apply for an EIN for your nail salon via mail or over fax. In both cases, you need a paper EIN application. Then, you simply fill out the form and fax it to the government or pop it in the mail. Finally, you wait for the EIN to be mailed or faxed back to your nail salon.
Nail salons use tax ID numbers for a variety of purposes. These numbers are called Employer Identification Numbers because you have to include these numbers on tax documents related to your employees. In particular, when you generate a W2 for your employee at the end of the tax year, you need to put your EIN on that form. Additionally, when you send payroll taxes (Social Security contributions, Medicare premiums, and income tax withholding on behalf of your employees) to the Internal Revenue Service, you also have to put your nail salon EIN on those forms.
However, if you don’t have any employees, you may be wondering, why do I need a tax ID (EIN) number for a nail salon? Well, there are a variety of other situations where nail salons also need this number. If you are changing the structure of your business or buying an existing nail salon, you need an EIN. Similarly, if you are incorporating your business, creating an S-corporation or forming a partnership, you also need an EIN, and you need to note the EIN on your corporate income tax return or your informational partnership return.
Beyond those situations, your nail salon needs an EIN if you are trying to become compliant with IRS withholding regulations. For instance, with some foreign-based independent contractors, you have to withhold tax even if you are paying them as a 1099 worker. You may also need an EIN if you want to create a retirement plan for your nail salon and for banking transactions such as opening a business account or applying for a loan. Think about the reason you need an EIN before you apply, because you need to note your reason on the application. You can choose from a list of potential reasons, or you can type in your own reason.
To review how you get a tax ID (EIN) number for a nail salon, you decide why you need an EIN. Then, you gather the required information. You start the application online, or you begin to fill out the printed application form. Once you provide all the requested details, you submit your online application, or you mail or fax your printed application. Then, you wait for the government to issue the number.
Now that you know the answer to – How do I get a tax ID (EIN) number for a nail salon – you may be curious about how long the process takes. Many people want to know how long does it take to get a tax ID (EIN) number for a nail salon. If you fill out the application correctly and provide all the requested details, you should receive your EIN in the following time frames:
- Online: same or next business day
- Fax: four business days
- Mail: four to six weeks
Note that if you don’t provide the requested information about your nail salon or if your application has other issues, the government may take longer to give you the EIN.