What it is: IRS Form SS-4 is the application form used to obtain an Employer Identification Number (EIN) for a business. An EIN is a unique identification number the IRS assigns to identify a business entity for tax purposes.
Why it is essential: Form SS-4 and the resulting EIN are important for startups to establish their legal identity for tax and reporting purposes. The EIN is required for various activities, including filing tax returns, opening bank accounts, hiring employees, and conducting business transactions. It ensures accurate identification and simplifies the administration of tax obligations.
Formulas: There are no specific formulas associated with Form SS-4.
How to use it in the context of startups: Startups should complete and submit Form SS-4 to obtain an EIN from the IRS early in their business formation process. The EIN serves as a unique identifier for the startup and facilitates compliance with tax regulations. An EIN enables startups to fulfill their tax obligations, hire employees, establish business relationships, and engage in various financial activities.