As a personal service corporation, your organization may be structured like a sole proprietorship, partnership, or c-corporation, but regardless, it’s likely that you’re going to need a Tax ID (EIN) Number. Many companies are considered to be personal services corporations, and many of them will need to complete hiring, open bank accounts, and other business-related activities.
Steps to Apply for a Personal Service Corporation Tax ID (EIN) Number :
- Prepare Mandatory Business Information
- Apply for a Personal Service Corporation Tax ID (EIN) Number Online
- Apply for a Personal Service Corporation Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Personal Service Corporation?
- Why Do I Need a Tax ID (EIN) Number for my Personal Service Corporation?
Accountants, lawyers, veterinarians: all of these are considered to be personal services. Personal services businesses are generally businesses in which a lead individual (the business owner) conducts 10 percent to 20 percent of the company’s work. However, personal services companies usually hire other employees as well, and may have multiple partners.
To get an EIN Number for a personal services corporation, you should first collect either the owner’s information or the information of a registered agent (usually still a principle member of the business). The individual in question will need to furnish their legal name, current mailing address, and SSN or ITIN.
If your personal service corporation needs a Tax ID Number, the fastest way to get it is to apply for it online. Once you’ve collected your owner information and your company information, you can submit it through a tax ID service. The tax ID will be processed within an hour, as long as there aren’t any errors on the application, and you should receive your tax ID number shortly.
Applying for a tax ID online is faster than the other alternatives, as well as more reliable. While you can acquire a tax ID through mail or fax, these methods could leave you waiting up to six weeks for your EIN Number, and you might need it now. Further, if there are any issues with your application, you won’t know immediately the way you will if you submit the application online.
Don’t want to apply for your Tax ID Number online? Not a problem. You can also apply for an EIN Number through mail or through fax. To apply via a paper form, you’ll need all of the information you need to apply online. That includes:
- Information about the business owner (or a registered agent), to include: full name, mailing address, social security number or ITIN.
- Information about the business, to include: the date of formation, the structure of the business, the industry the business is in, and why it needs an EIN now.
The process of filling out the form is fast, but it may take substantially longer to get an EIN returned. If you send your application through mail, you can expect to receive an EIN in four to six weeks. If you send your application through fax, you can expect to receive an EIN in three to five business days.
You can get a tax ID number in three ways: applying online, applying via the mail, or applying via fax. In general, the fastest way you’re going to be able to acquire a tax ID is by filling out a short form with a tax ID service. They will send in your information directly and you’ll get a tax ID within an hour.
It depends on how you’ve applied for it. If you’ve applied through the mail, you’ll get a tax ID number within six weeks. If you’ve applied via fax, you’ll get a tax ID number within five business days. And if you’ve applied online, you should receive it in about sixty minutes.
As a personal services corporation, it’s a good idea to get an EIN before you find that you need one, because you’re very likely to need one eventually. A tax ID number is going to be necessary after the initial formation of your business for many tasks. That includes paying federal taxes and hiring employees.
Though personal services corporations can be very different (from healthcare clinics to financial advice firms), most of them share a few aspects that would require the use of a tax ID number:
- Hiring employees. In a personal services corporation, the primary individual usually only does up to 20% of the work. The rest of the work is going to be done by employees. To hire employees and to pay them, as well as to pay payroll taxes, you will need to have an EIN Number, which is also known as an Employer Identification Number.
- Opening business bank accounts. It’s impossible to open a business bank account or get a business loan without an EIN Number, which many personal services corporations are going to need.
- Getting equipment loans. Many personal services corporations rely upon equipment to service their customers, and they won’t be able to get loans to purchase this equipment without an EIN or Taxpayer ID. An EIN is used to identify companies when it comes to credit lines and loans,
a business lease. While a business lease, especially for a new business, may be guaranteed by the owner, the business lease often still needs to be under a business ID.
In short, a tax ID number isn’t just used for paying federal taxes and hiring employees (though these are very important). They’re also used for getting business bank accounts, procuring business loans, and so forth.