As you begin to set up your own freelance business, you are likely thinking about where to work, how to create an inventory and how to gain customers or clients. What many people fail to think about as their set up their freelance companies is the need for a federal tax ID number. Even though this number isn't required for all freelance businesses, it is still a good idea to apply for one.
Benefits of an EIN for a Freelance Business
Obtaining an IRS EIN for your freelance business makes it look more credible. It shows lenders that you are serious and may make it easier for you to earn ay capital you need. The number also allows you to open a bank account in your company's name, apply for business credit cards and file taxes for your business. It also provides you a level of protection by allowing you to fill out your W-9 forms in your company's name. Keeping your personal name and identifying information, such as your social security number, private protects you from identity theft. Finally, obtaining the number now is convenient because you'll already be set up to hire employees should your company grow in the future.
Applying for an EIN
You can apply for your federal tax ID number on the IRS-EIN-Tax-ID website. The entire process takes less than an hour, and if you submit your application before 3:00 p.m. PST, you will likely receive your EIN the same day. Those who submit applications after 3:00 p.m. will receive theirs the next business day. The application is easy to understand, and you'll receive your employer identification number directly to your email account.
Start your freelance business the right way. IRS EIN Tax ID Filing Service helps people like you complete their applications, get their EIN numbers and be well on their way to a successful company. Visit their website for more information.