Many businesses are required to obtain an
Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is a federal tax identification number for your business. Some sole proprietorships with no employees can use the owner's social security number as the federal tax number for the business. If, however, the business owner would prefer not to disclose his/her social security number in certain business transactions, an EIN number can be obtained from the IRS. For most other business types, an EIN is mandatory.
To obtain your EIN number immediately,
apply online (available for most businesses) or call the IRS at (800) 829-4933. If you call, it is highly recommended that you first review
IRS Form SS-4 and
Form SS-4 Instructions
so you will be prepared to answer the questions that the IRS will ask about your business. You can also apply by
fax or mail, but it may take 4 days (fax) to 4 weeks (mail) to obtain your EIN through these methods.
IRS Publication 1635, Understanding Your EIN, provides additional information on this topic.
In addition to obtaining an EIN, it is important for business owners to understand their federal tax obligations. The Internal Revenue Service (IRS) has a number of useful online resources to help you in this area. Click on the links below for additional information. If you hire employees, be sure to review our
employer taxes
information as well. You may also want to consult with an accountant or tax professional regarding your business taxes.
Additional Resources
IRS website for small businesses/self employed
http://www.irs.gov/businesses/small/index.html
IRS website on business taxes
http://www.irs.gov/businesses/small/article/0,,id=98966,00.html
IRS Publication 583 (Starting a Business and Keeping Records)
http://www.irs.gov/pub/irs-pdf/p583.pdf
IRS Publication 334 (Tax Guide for Small Businesses that use Schedule C or C-EZ)
http://www.irs.gov/pub/irs-pdf/p334.pdf
IRS information on forms to file by business structure
http://www.irs.gov/businesses/small/article/0,,id=98359,00.html
IRS online classroom (training) for small businesses
http://www.irs.gov/businesses/small/article/0,,id=97726,00.html
Federal Business Taxes Payable Annually in Kentucky
http://www.thinkkentucky.com/kyedc/pdfs/fedbustax.pdf