Restaurants have a lot to manage, from hiring employees to purchasing restaurant equipment and supplies. While some businesses may not immediately need an Employer Identification Number (EIN), a restaurant always does. Here’s everything you need to know.
Steps to apply for a Tax ID (EIN) Number for your Restaurant :
- What is a Tax ID (EIN) Number?
- Why Does a Restaurant Need a Tax ID (EIN) Number?
- How to Get a Tax ID (EIN) Number for a Restaurant Online
- How to Get a Tax ID (EIN) Number for a Restaurant through Mail or Fax
- Is an EIN Number the Same as a Tax ID?
- How Long Does It Take to Get a Tax ID (EIN) Number for a Restaurant Business?
A Federal Tax ID Number or Employer Identification Number is akin to a social security number for a business. Federal and state organizations, banks and creditors will use an employer’s Tax ID Number for their forms and documentation.
A Tax ID Number isn’t acquired when the business is first formed: instead, there is a separate application process. Not all businesses need a Tax ID Number: sole proprietorships and Schedule C businesses don’t necessarily need one. Restaurants, on the other hand, need an EIN for a variety of reasons.
Most restaurant structures involve a great deal of employees. When paying payroll taxes and filling out employment forms, a Tax ID Number is used to identify the business; the business will be unable to accomplish this without an EIN. Companies have a large amount of forms that they need to fill out in order to hire employees and need to be able to pay their payroll taxes on time. But that’s not all a restaurant needs a Tax ID Number for. A restaurant also needs a tax ID for its food service licenses, alcohol licenses and business operating agreements. Without a Tax ID Number, a restaurant won’t be able to apply for business bank loans or business lines of credit. Further, a Tax ID Number is what allows a business to purchase items wholesale, as most wholesale licenses require an EIN.
Many insurance companies also require a company’s EIN. A restaurant is going to need liability insurance, workers compensation insurance and employee health insurance. Without an EIN, the restaurant may need to put off acquiring these things and won’t be able to enter into business operations quickly. All these operations are critical to a restaurant and, consequently, a restaurant needs a Tax ID Number even more than any other type of business. Luckily, a business can acquire a Tax ID Number quickly online.
The fastest way to get a Tax ID Number for your business is to acquire it online. To get a Tax ID Number online, you can work with a tax ID service. They will need the following information:
- Your company’s name and its business information (how it’s organized).
- Your company’s physical address and mailing address.
- Your (or your agent’s) name, mailing address and social security number or ITIN.
To get a Tax ID Number for a business, you will also need a social security number or an ITIN. A registered agent may also be able to apply for the Tax ID Number for you: this registered agent will act as a first point-of-contact for your company’s needs. An agent should be a principle in the business. Once the information has been submitted, an EIN will be returned within sixty minutes. An EIN can be used once it’s acquired: it will be usable immediately.
An EIN can also be acquired through mail or fax, but there are some downsides related to this. To acquire a Tax ID Number through mail, you will need information related to the business as well as its registered agent. You can submit a form to get a Tax ID Number, but that Tax ID Number may take anywhere from four to six weeks to be delivered. Fax is faster. You can get a Tax ID Number through fax within three to four business days. However, you need to have a ready fax machine in order to send the application there. You also need to have a fax machine to receive the Tax ID Number. Either way, once the Tax ID Number has been received, it can be used.
While both mail and fax are an available option, there are no benefits to using mail or fax over an online application process. An online application process is much faster and easier: it can get you your EIN within an hour. Regardless of the way you decide to get your Tax ID Number, working with a tax ID service will help: it will ensure that your application is correct the first time and will get you your Tax ID Number as quickly as possible.
An EIN is the same number as a Tax ID. It is a nine-digit number in the format of XX-XXXXXXX. How it is referenced usually depends on what it’s being used for. When the number is being used to pay federal taxes, it’ll be referenced as a Federal Tax ID or a Tax ID.
When the number is being used to hire employees or pay payroll taxes, it will be referenced as an Employer Identification Number, EIN or FEIN. Regardless of how it’s referenced, it will be the same number.
The speed at which you receive your Tax ID Number depends on two things: the method you use and whether your application requires further information. An online application is fastest, at under an hour. A mailed-in application takes the longest, up to six weeks. Either way, you can double the amount of time if your application is returned for errors.
Is your restaurant ready to get a Tax ID Number? A Tax ID Number can be acquired online in less than sixty minutes with the help of a tax ID service. You can then begin purchasing equipment, hiring employees and getting your licensing and your documentation in order.