Similar to social security numbers, the government needs to be able to identify various businesses and relationships, largely because of tax implications. Therefore, when a new business is started, it’s common to secure a tax/employer identification number, which is the non-human being equivalent to an SSN.
Commonly these numbers are referred to as EINs, employer identification numbers. The IRS requires that most businesses with more than one owner have an EIN.
Most of us are familiar with Social Security numbers. Usually assigned at birth, SSNs are individual, unique numeric identifiers for each US citizen and many non-citizen residents. SSNs together comprise a system for various levels of government to identify each person uniquely, even if those people share names, ages and hometowns.
Similarly, the government needs to identify various businesses and relationships, often because of the tax implications that those entities and relationships present. For instance, certain corporations are directly taxed as if they are people, but most partnerships have tax implications directly imposed upon the individual partners in the partnerships.
Read more about tax/employer identification number in Lee’s article in the Lima News here: Legal-Ease: Do I need a tax/employer identification number?
Source: LimaOhio.com, “Legal-Ease: Do I need a tax/employer identification number?,” by Lee R. Schroeder, May 26, 2018
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.