If you are looking to file taxes for a new corporation, one of the first things you need to apply for is a federal tax ID. A tax ID will identify your corporation in the eyes of the government, and serve as ID for tax purposes. If your company is a personal service corporation, you will need a personal service corporation tax ID, which is pretty much the same as an EIN number, in order to file taxes for the corporation.
Is my Company a Personal Service Corporation?
By definition, a personal service corporation is one where the professionals providing service for the corporation also own ten percent of the stock by value. These personal services can include law, health consulting, or performing arts. Personal Service Corporations enjoy a number of benefits from the IRS; if your corporation meets their criteria, you should register for a personal service corporation tax ID.
What Else do I need?
In addition to registering your company for a personal service corporation tax ID, you’ll also need your employees to have individual tax ID’s, as taxes will be collected from the corporation and from employees. For those working as an employee, their EIN is usually the same as their social security number.
How Long Does It Take?
The fastest way to obtain a personal service corporation tax ID is to do so online at the IRS website. You can complete the process yourself, or delegate the task to a trusted accountant. By applying online, you can get your tax ID immediately so that you can move on with the rest of tax season. You can also apply via fax or mail, but you will need to wait for several weeks to receive your number.
If you have questions, you can always speak to the person who does your taxes, or do some research on the IRS website.