Whether a trust needs a tax ID number depends on the type of trust. A trust account that is “revocable” is still an account that can be controlled by the original grantor of the trust. Consequently, it’s going to be filed under the grantor’s own social security number or individual taxpayer identification number. If the trust is irrevocable, on the other hand, it’s a...

An irrevocable trust is a special type of account that holds assets that are given by a grantor. The trust account will hold these assets either indefinitely or under specific terms set out in the trust, generally to the benefit of a specific beneficiary such as a relative or a charity. The trust account is an entirely separate entity to the grantor and the beneficiary, and consequently requires...

A revocable trust is a trust that is created under an agreement that can be changed. When opening the trust, a grantor (or grantors) will place assets in the trust for the benefits of a beneficiary. The trust will pay out under terms that the grantor has stated and the beneficiary only has the amount of control over the trust that the grantor grants. At any time, the trust can be dissolved by the...

When you run a restaurant, you’re busy writing menus, perfecting dishes, supervising staff, keeping customers happy, and juggling countless other tasks. On top of that long to-do list, you also have to manage your restaurant’s tax and banking needs, and generally, you need a tax ID called an Employer Identification Number (EIN) to handle everything. Wondering what is a tax ID (EIN)...

When you create a trust, you create a separate entity that is intended to reduce taxes and control assets. Of course, creating a separate entity can also mean that you need a separate Tax ID number. Whether you’re trying to create a trust account for someone else or you’re managing an estate trust for someone who has passed, finding out more about the EIN process is critical. Here’s everything...

The simplest and most common business structure, a sole proprietorship refers to an unincorporated business run by a single individual. When you run a sole proprietorship, you report your business income as personal income and you get taxed accordingly. In contrast, with a corporation, the business pays you salary or dividends which you report as your personal income, and the business reports its...

Does your partnership need a tax ID number? Can you apply for a tax ID number for a partnership online? For both partnerships and corporations, a tax ID number will usually be used to separate the business into a separate tax-paying entity. Here’s what you need to know. Ready to start your Tax ID Application Now? Apply for an IRS Tax ID Number Steps to Getting a Tax ID (EIN) Number for a...

As a non-profit organization, compliance with Internal Revenue Service requirements is paramount. To be seen as a positive non-profit, one that is in good standing with the IRS, you need a Tax ID (EIN) Number for tax administration purposes. Ready to apply already? Apply for a Non-Profit Tax ID (EIN) Number Steps to Applying for Tax ID (EIN) Number for a Non-Profit Organization Prepare Mandatory...