In the state of Virginia, all business owners need to have a VA tax ID number to identify all their tax returns including the withholding taxes of their employees. Usually, it is the business entity has more than one employee will need this tax Id number for identification. The EIN is applicable for all states of the United States of America.
So exactly who needs a VA tax ID number in Virginia? If you are a sole proprietor with one or more employees working for you, or have a Keogh plan for retirement, or is a business that need an excise tax such as sales tax, tobacco or alcohol, then you need an EIN. This will help IRS identify your business, especially in the state of Virginia, where you need to file various forms of business taxes.
What if You Purchase a Business?
If you happen to own a business and offer it for sale to someone else or an established company, the new owner will need to secure another EIN for purposes of tax identification. You should never ever use the EIN of the previous owner or you’ll be held liable with the IRS.
What if You Have More than One Business?
If you are the sole proprietor of many businesses, you need to use the same EIN number for all your paperwork. So ensure you get a VA tax ID number to recognize your business. If you are a separate entity like LLC or partnership, you need a separate EIN for each.
So How Do You Get the Tax ID Number
This is the easiest thing you can do concerning the IRS. You need to access the IRS website to obtain the form SS-4 and send it to their office by mail, fax or email. You need to accomplish the form with relevant details about you and your business. If you send by fax or email, you get your VA tax ID number instantly. However, with mail, you need to wait for few more days before IRS responds to it. Getting an EIN is mandatory for all entrepreneurs.