All You Need To Know About The Employer Identification Number

by akhil shahani The days of business planning, incorporation and start-up pains are over. Everything is set for you to start off your new business. Just when you think all the paperwork is done, the Employer Identification Number stares you in the face. What is it? Well, you know that any business entity is required to file tax returns every year. Will your Social Security number suffice for that? Not quite. Unless you are the only person working in the business, you need to get an identification number for your enterprise. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used only for identification, it is usually referred to as Tax Identification Number (TIN) and when used for the purposes of reporting employment taxes, it is known as Employer Identification Number (EIN). So, it’s clear that all new businesses need to obtain an EIN. The only exception is for sole proprietorships which do not have any other employees. However, it is a good idea even for sole proprietors to obtain an EIN, so that they can use it instead of their personal Social Security number on bank accounts and legal paperwork. Confused? We’ll make it easier for you. You need an EIN: 1. When you have employees in your company 2. When you purchase an ongoing business 3. When you change your organization type - for example from a sole proprietorship to partnership or corporation 4. When want to hold different accounts in your bank and use EINs for your business and Social Security number for your personal accounts 5. When you have a qualified retirement plan 6. When you file any of these tax returns: o employment o excise o alcohol, tobacco and firearms The EIN is specific to a particular business and you cannot transfer it if you sell or otherwise divest your company. It is very much like your Social Security number which is specific to each individual, and is usually written in the form 00-0000000. To obtain an EIN for your company, you have to file Form SS-4, which is the prescribed application format, with the Internal Revenue Service (IRS). The forms are available at all IRS and Social Security offices. You can apply for it over phone, fax, mail or online. There is no application fee but the form can take several weeks to process depending on how you ask for it. You may also have to apply for a state EIN in states that charge their own income tax. If you do not have your EIN by the time a return is due, write "Applied for" and the date of the application in the space shown for the number. Do not use your social security number in place of your EIN. With that out of the way, you are truly set to be in business! Hi, I'm Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out http://www.SmartEntrepreneur.net . It's full of articles and resources to help you start and grow your business successfully. Please visit us & download our special "Freebie of The Month" at http://www.smartentrepreneur.net/freebie-of-the-month.html Article Source: ArticleRich.com

Public Liability Insurance and Your Protection

Author: Musa Aliyu From falling trees, collapsing walls to something suddenly going wrong, being the host of a function in which hundreds of guests are in attendance certainly requires more than just organising the event and sending out invites. In the run up to last Christmas several events had to be cancelled due to the lack of public liability insurance. Health and safety consideration is crucial to the successful hosting of any function, which is required by law. In the absence of proper consideration for the welfare of one’s guests and failure to put in place all necessary precautions the host then becomes clearly liable, if an incident leading to death or injury was to occur. What is public liability insurance work? Public liability insurance is the type of insurance cover taken to protect one and one’s business against the financial liability that could arise from the injury suffered by or death of a third party. Other losses that could result in such risks include the loss or damage of property or any other losses suffered from one’s negligence. Whereas incidents that could lead to any of the above mentioned unfortunate events may not be predictable, what could be ascertained in order to prevent the risk is the level of health and safety precautions taken. In a more proactive step, however, taking out public liability insurance substantially resolves a potential problem. In some cases you may be held liable for the injury or death or loss a victim suffers on account of your negligence regardless of the fact that you did not invite them to your premises or workplace. This is where tradesmen, especially when working from home or places open to members of the public are drawn in. What needs to be established in such situation is whether there was culpability arising from negligence and how this resulted in the accident. Rather than waiting for a little kid or an adult, who may be a customer, to bump into your tools or equipment at your workplace or when you visit their homes to work and start thinking of a way out, usually having public liability insurance reduces the risk to the minimum. In some cases it may not even be someone else that is at risk, it could be you or your employee. Employees’ safety is as important as your business. Where there is negligence on your part regarding their safety, you could end up with a huge claim slammed on you. How does public liability insurance work? Public liability insurance provides cover for the damages or compensation a member of the public is given following an injury, damage or any other loss incurred as a result of your failure (negligence) or due to the fault of your business. The policy also covers other connected issues like the costs and expenses of the victim, including their legal fee and even what is paid the medical personnel attending to them or conveying them to a medical facility or hospital. In conclusion, for one to have a better grasp of how public liability insurance works and how it could be obtained it is important to seek the assistance of experts, whose professional advice would help clear all grey areas. Musa has more articles pertaining to public liability and other legal related articles. This article is free for republishing Source: http://www.goinglegal.com/article_767488_18.html