Finance

Do You Need an EIN if You Work From Home?

Most of the time, people who work from home are not required to have an employer identification number. However, there are some exceptions. If you hire employees or work with alcohol, tobacco or firearms, you will need to apply for an EIN. Even if you don’t need one, obtaining one offers several benefits to filling out the application on the IRS-EIN-Tax-ID website.

Why Should You Get an EIN if You Work From Home?

Working from home comes with some risks, especially if you work for a new company. Unfortunately, some use work-at-home job opportunities as a way to gather identifying information of applicants. If you have a federal tax ID number, you can use it and your company’s name on the W9 you’ll need to fill out for work-from-home jobs. This keeps your personal name and social security number safe.

An employer identification also makes your business look more credible. In addition to being able to open company bank accounts or credit cards, you may have a better chance at applying for business loans should you ever decide to. Finally, an EIN may protect some of your personal assets as well. If your business falls into legal trouble, any of its assets would be at risk before your personal home, car or bank accounts.

How Do You Apply for an EIN?

You can apply for a federal tax ID number online. The process is easy to understand and typically takes only a few minutes. You’ll choose your entity type, which is usually sole proprietorship if you work at home, and then you’ll answer a few questions about your business and yourself. Once you submit the application, you can use the EIN number lookup to track when you’ve been assigned a number. However, you may never need to. People who apply through IRS EIN Tax ID Filing Service usually receive their number the very same day. Those who apply after hours receive it the next business day.

Are you ready to make your work-at-home life easier? Get in touch with IRS EIN Tax ID Filing Service to begin the application.