An EIN is used to identify the company’s tax purposes. Its one-of-a-kind characteristic is that it has nine digits. It is only used in the corporate world. An EIN is required if your company is involved in hiring people.
It is not required for non-employers to obtain an EIN, but if you operate on a corporate or partnership basis, you must obtain one. This article will examine whether it is a requirement to have an EIN in your blogging business.
Whether or Not to Register Your Blog Business
Anyone who starts a small business expects that it will grow into a well-known and successful enterprise. The same is true when it comes to blogging. Deciding to register your blog business according to legal requirements puts you better positioned to advertise your work on many websites.
The wisest decision you can make for your blogging business is to employ the LLC model or sole proprietorship. The benefits of forming a limited liability company (LLC) include asset protection and tax benefits.
When you register your company as an LLC or sole proprietorship, you’ll be eligible and required to apply for an EIN. This makes you a recognized employer.
After qualifying for one, you are given a unique EIN number by IRS. The digits can never be similar to someone else digits, so it becomes easy to do a follow-up in astray areas.
After registering your blog business, you will need an EIN for the following reasons;
1. Adding Credibility as a Freelancer
Blogging is seen as a form of freelancing. Whether you’re a sole owner or an LLC, you’ll need to keep track of your customers. As a freelancer, losing just one customer is a huge step backward.
To avoid backwardness, you must present yourself as a qualified and respected business owner. When you give your client your employer identification number [EIN], you may be asked to fill out a tax form to indicate that you are prepared to pay taxes.
You having an EIN indicates that you are a genuine business. No one wants to work with or trust someone they believe is dodging taxes. They may believe that even the services you provide are scams. Even if they decide to work with you, the chances of quitting at any time are high.
Having an EIN provides you an advantage over organizations looking to recruit you because it demonstrates your independence and trustworthiness as a blogger. Firms consider decreasing their legal responsibilities when hired when they have an EIN.
2. Hire Staff Quickly and Easily
You could be a well-established business or one that is just getting started. Due to the high rate of uncertainty, the temptation to not obtain an EIN while beginning a firm is strong. You will require an EIN to hire employees in your blogging business, depending on the amount of work you have. Blogging is a trend that isn’t going away anytime soon.
You will always not be able to write all of your site’s blogs. This puts the site in a position where it will require an extra hand to ensure that the blog site is fed with content regularly. An EIN speeds up the payroll system’s setup process. This allows you to keep track of your employees’ work and see what taxes have been deducted from your and your employees’ earnings.
3. Opening of a Business Account
You might want to open a Business account with a specific bank for your company. Although not all banks require an EIN, some may open one for you if you do not have one. Whether or not the bank requests one, it is usually good to present one when opening an account.
Like any other business, your blog business requires the creation of an account. You must verify that all funds entering and exiting your account are used strictly for business purposes. Mixing personal and business accounts confuses, making it difficult to manage your finances, and failing the firm.
Obtaining an EIN is a simple process that may be completed online. After the process has been completed successfully, the EIN will begin operating immediately. It has several advantages that you will not want to overlook in your blog business.