If you are considering forming an S-Corporation, you might be wondering if you need a tax ID, the answer to that is yes. For those of you unsure about what an S-Corporation actually is, and the benefits that incur with an S-Corporation, keep reading. We will discuss those benefits, as well as how to use the SS4 online to check the status of your application.
An S-Corporation is a business that can be registered and incorporated without the double taxation that is often associated with a for-profit corporation, as for-profit corporations typically are responsible for paying the income tax on the federal level and the corporate level. The “S” in S-Corporation stands for small business. A corporation can receive the S title when there are less than 100 owners within the status. An S-Corporation, S-Corp, are not charged within the corporate structure and are instead reported on the shareholders of the company’s personal income tax returns.
The benefits of becoming an S-Corp and obtaining an EIN under this status can be great. Some common benefits include the tax advantages, as they are not double taxed, and the personal liability protection from lawsuits that are business related. This means that should a business lawsuit be opened against the S-Corp, the owners’ personal property is not at stake of being lost.
If you are interested in learning more about becoming an S-Corp, or need assistance applying for your S-Corp tax ID number, or simply utilizing the EIN lookup to check the status of your application, IRS-EIN-Tax-ID is here to help. We want all of our clients to enter into the process with confidence and be able to navigate your way through the application process with all of the support you need to obtain your EIN number.