If you are trying to start a non-profit organization, there is a lot of paperwork that you have to submit to the IRS to ensure that you don’t get taxed on your earnings. While there are quite a few different kinds of operations that can qualify for this status, the first thing you have to do is apply for a non-profit organization Tax ID number. This number is essential so that the IRS knows that you are tax exempt. However, what kind of ID’s are available for non-profits? Let’s find out.
What is a Federal Tax ID Number?
First and foremost, it’s essential that we understand what we’re discussing before we look at the various types. A Tax ID is a number used by the IRS to identify a particular entity for tax purposes. Individuals, companies, trusts, and other organizations can have their own ID numbers, but they must apply for them from the IRS before they can operate legally.
The three types of Tax ID are a social security number (SSN), Tax ID number (TIN), and employer ID number (EIN).
The first two are for individuals only. This means that businesses or groups cannot use them, including non-profits. So, the only type of ID that will work for your enterprise is an EIN. Without this number, you won’t be able to claim a tax exempt status.
How to Apply for an EIN
Fortunately, it’s really easy to get this number. You can submit your application online and get it from the IRS in a matter of hours. While there are still a few extra steps to ensure that you qualify for 501(c)3 status, obtaining an EIN is the first thing you should do.
When applying for an EIN or an LLC Tax ID number, be sure to check out www.irs-ein-tax-id.com. We make the process exceedingly simple for you, and we ensure prompt results. We also offer advice to help you get started.