Most pizza shops need a tax ID number. This number identifies your business to the Internal Revenue Service (IRS) as well as to financial institutions. As an individual, you use your Social Security Number (SSN) as your tax ID number, but when you run a business, you need a special tax ID called an Employer Identification Number (EIN). Wondering if you need a tax ID number for a pizza shop? Trying to figure out how to apply for an EIN for your pizza shop? Keep reading to learn the essentials.
Steps to getting Tax ID (EIN) Number for your Pizza Shop
- Does a Pizza Shop Need an EIN Number?
- Prepare Pizza Shop Information
- How to Get a Tax ID (EIN) Number for a Pizza Shop Online
- How to Get a Tax ID (EIN) Number for a Pizza Shop through Mail or Fax
The EIN is called an “employer identification number“; because you need this number if you have employees. You put this number on all tax documents related to your employees. In particular, you use your EIN when you remit payroll taxes to the IRS, but you also use the EIN on your employees’ W2 forms.
If you generate 1099 forms for independent contractors, you don’t need an EIN for those forms. However, in most cases, pizza shop employees do not meet the rules to be considered freelancers, and as a result, you are unlikely to file a 1099 for workers in your pizza shop. That said, if you are paying non-wage income to an alien (which can include freelancers based in other countries as well as businesses), you need to withhold some of their money for taxes, and in this case, you also need an EIN.
However, even if you don’t have any employees or aliens receiving non-wage income, you still need an EIN for a number of other purposes. In particular, if you are opening a bank account or applying for a loan, you need an EIN for your loan documents. On top of that, you need an EIN if your business is an S-corporation or a single member limited liability company (LLC). You also need an EIN if you buy a pizza shop without an EIN or if you are changing the business structure of your pizza shop. For instance, if you are shifting from a sole proprietorship to a partnership or a corporation, you should also apply for this number. Finally, you need an EIN if you are setting up a pension plan.
As you can see, most pizza shops need an EIN. Luckily, the process to obtain an EIN is fairly straightforward. Before you apply, you need to prepare your pizza shop information. You need the following details:
- Pizza shop’s legal name
- Trade name if different from legal name
- Your name or any other relevant "care of " name
- Pizza shop mailing address
- County and state of location
- Name of responsible party
- Responsible party’s Tax ID such as SSN, Individual Tax Identification Number (ITIN) or EIN
- Business structure for your pizza shop (sole proprietorship, partnership, corporation, personal service corporation, nonprofit organization, etc.)
- Reason for applying (you can choose one of the reasons detailed above, or you can write in another reason)
- Date you acquired the pizza shop
- Closing month of accounting year
- Number of employees in agricultural, household or other sectors
- Estimation of employment tax anticipated to be owed in the following year
- First date your pizza shop paid wages or annuities
- Principal activity of your business (most pizza shop owners select accommodation and food service)
- Main line of merchandise sold, products produced or services provided
You also have to mark if your business is an LLC or the foreign equivalent, and if so, you need to note the number of LLC members. Finally, you provide your signature, and you are done applying. Now that you understand the information you need, you are probably wondering how to apply for an EIN for your pizza shop online or via mail or fax.
Do you want an EIN for your pizza shop as soon as possible? Do you want to minimize delays and hassles? Are you trying to avoid driving and standing in line? Then, you need to apply for an EIN online. There are multiple services that can help you with this process.
To apply online, gather the information listed above. Then, make sure you have a secure connection. If you’re using the Wi-Fi at your home or at the pizza shop, it’s secure if it’s locked with a password, and you trust the other people who have access to the Wi-Fi.
If you share your pizza shop Wi-Fi with customers or if you are filling out your online EIN application at a coffee shop or library, your connection is not secure. In this situation, anyone on the network can track your keystrokes and steal your sensitive information. To avoid that, use a virtual private network (VPN) when applying for an EIN over public Wi-Fi.
Once you complete the application, you can submit it. Then, as long as you provided the requested information, you should receive your EIN the very same business day that you applied, and best of all, you can start using that number right away. Whether you’re filling out employee tax forms, applying for a bank loan, or doing anything else, you can pop your new EIN on the forms as soon as you receive the number.
Alternatively, you can also apply for an EIN for your pizza shop by mail or fax. Both of these options take longer than applying for an EIN online, but they are viable alternatives to applying online if you don’t have web access or if you just prefer old-fashioned paperwork.
In both cases, you need the same information you use for an online application. If you apply over fax, you need to provide a return fax number. Don’t have a fax number? That’s OK. You can fax in the application and have the tax ID number mailed back to you. Mailed applications take about four weeks to process, while faxed applications should take about four days.