Corporate Doc Filings LLC

IRS EIN Number Application (2020)

APPLY ONLINE

Reasons You Need a Federal EIN

  • Hire employees
  • Start or purchase a business
  • Operate a business
  • Open a business bank account
  • Create a Trust, Estate or Non-Profit
  • Open a Corporation or Partnership
  • Form a Limited Liability Company
  • Need to file a Tax Return
  • Death of an individual
  • Comply with the IRS

Not Sure Which Business Entity to Select?

Over 70% of EINs selected are either a Sole Proprietor, LLC, or Corporation. Here are the differences:

Sole Proprietor / Individual

Advantages

  • Easiest & least expensive to create

  • Owner has COMPLETE control over the company

  • Lowest tax rates

  • Not required to hold annual meetings or report to shareholders

Disadvantages

  • You can be held personally liable for business debts, obligations, and lawsuits. Your personal wealth & assets are linked to the business

  • Limited life - when you die, so does the business

  • Can be difficult to get outside funding

Examples of Typical Sole Proprietorships
  • Catering Company
  • Lawn Service
  • Maid Services
  • Freelancers
START HERE
Sole Proprietor / Individual

Limited Liability Company (LLC)

Advantages

  • Limited liability - the business is a separate entity from your personal finances. The business is susceptible to lawsuits & debt, but you are not

  • Few restrictions on sharing profits among LLC members

  • Not required to hold annual meetings or report to shareholders

Disadvantages

  • Profits may be subject to self-employment taxes

  • Some states require LLCs to have more than 1 member

  • In some states if a member of the LLC leaves, they can dissolve the business & force the other members to fulfill obligations

Examples of Typical LLCs
  • Rental Properties
  • Law Firms
  • CPA Firms
  • Investment Companies
START HERE
Limited Liability Company (LLC)

Corporation (C-Corp)


Advantages

  • The ability to offer Initial Public Offering and sell stock to raise capital

  • Limited liability - the business is a separate entity from your personal finances. The business is susceptible to lawsuits & debt, but you are not

  • No restrictions on ownership

  • Easy to transfer ownership/stock

Disadvantages

  • Subject to "double taxation" at the corporate AND individual level

  • More complex tax laws & legal requirements

  • Are required to hold annual meetings and report business information to shareholders

Examples of Typical Corporations
  • Publicly traded companies
  • Large companies
  • Companies that are looking to raise a large amount of capital
START HERE
Corporation (C-Corp)
Disadvantages

  • You can be held personally liable for business debts, obligations, and lawsuits. Your personal wealth & assets are linked to the business

  • Limited life - when you die, so does the business

  • Can be difficult to get outside funding

Disadvantages

  • Profits may be subject to self-employment taxes

  • Some states require LLCs to have more than 1 member

  • In some states if a member of the LLC leaves, they can dissolve the business & force the other members to fulfill obligations

Disadvantages

  • Subject to "double taxation" at the corporate AND individual level

  • More complex tax laws & legal requirements

  • Are required to hold annual meetings and report business information to shareholders

Examples of Typical Sole Proprietorships
  • Catering Company
  • Lawn Service
  • Maid Services
  • Freelancers
Examples of Typical LLCs
  • Rental Properties
  • Law Firms
  • CPA Firms
  • Investment Companies
Examples of Typical Corporations
  • Publicly traded companies
  • Large companies
  • Companies that are looking to raise a large amount of capital
START HERE
Sole Proprietor / Individual
START HERE
Limited Liability Company (LLC)
START HERE
Corporation (C-Corp)
Need another entity type?

eGov-Assist is a document preparation & filing service and cannot provide legal, financial, or other professional advice. We do not review the information you submit on a professional, legal or accounting level as we are not, nor are we affiliated with any attorneys or accountants. You can obtain an EIN yourself at no charge with the IRS but we won’t be able to assist you. This website is not affiliated with the US Department of Treasury or the IRS.