What About Working from Home? Does This Require an EIN?

An EIN number is not necessarily required for every business. It is important for new business owners to learn more about the type of company they wish to build as well as consider planned business actions. An EIN or tax ID number, may not be required, however, there are certain benefits to having this number. If you work from home, your business may still require this number for proper operation.

Not Mandatory

When a business is considered a Limited Liability Company or a sole proprietor, where there are no employees, then a tax ID number is not required. The social security number of the owner can be used instead of an official EIN. It is important to consider the type of business you will run and if you will have employees to determine if this number is needed.

Required EIN

If you have a business entity that is considered a corporation, partnership, estate, trust, etc., then an EIN is required.  The tax ID for trust, corporation and the like are used as a form of identification. The Internal Revenue Service will issue the entity a nine-digit number that will be used to identify the entity for tax requirements.

An EIN can also be useful for businesses with the day to day operations. Most banks and other financial institutions require businesses to have an EIN before a loan will be provided for the business or before a bank account can be opened. By having this number in place, you will be ready to begin any applications for financial needs.

Setting up an EIN is simple and can actually be completed online. At IRS-EIN-Tax-ID, the process involves selecting your entity type and then filling out paperwork. The application is then sent to the IRS for approval. Before long, you will have your new EIN number and be ready to get started with your new business.

 

What are options for cash emergencies?

Sometimes no matter how well you plan you can face bad luck in life.   Between cars, homes, apartments, medical bills, and just general expenses life can knock you back.

While many financial professionals all state that you should have 6 months of your salary saved for an emergency, many of us know that is just impractical.  It’s hard to save 6 months of your salary in the world today. So, what do you do when a disaster strikes?

Here are some things you can do.

First, you can get a short term loan.  One option is to get a car title loan. These generally have high interest rates and are designed to be a short-term loan.  Contact Family Title Loans to learn more.

Second, you can look into refinancing any credit cards into a lower interest rate.  Refinancing your home is one option.

Third, consider taking a loan from friends and family.  But, before you do this be prepared to talk through things ahead of time.  A relationship can be ruined if money comes in between people.

Fourth, contact your current creditors.  If you are going to get behind in paying your bills many times your creditors can and will work with you.  Contact them to setup a payment plan. Whatever you do, always strive to pay your mortgage first.

Fifth, look around your house for things you can sell for quick money.  Look into posting things in your local neighborhood group or Craigslist.  Getting a part-time gig can be a way to earn additional money, but that does take a lot of time, unfortunately.

Finally, look at what expenses you can cut.  Many times you can cut the cord on cable tv or satellite and still get excellent entertainment.  Getting clothes at second hand stores works, and being frugal. You can clip coupons, budget effectively, and be creative.  The internet has every type of idea imaginable. From making your own laundry detergent, and growing your own food–you can figure out a way if you have a cash emergency to get by.