Financial Services

When Does One Apply for a Personal Non-Profit Organization Tax ID?

Posted on in Financial Services

Running a non-profit organization is a large task that is often quite rewarding despite the many responsibilities. However, if you don’t go through the proper channels at the Internal Revenue Service, you could find yourself in an even more stressful situation. If your non-profit is required to pay taxes, you will need to obtain an EIN. Of course, it is important to know what constitutes paying taxes and what doesn’t.

  • A non-profit that earns ANY profits on its sales MUST pay income taxes
  • A non-profit with its own building does NOT pay property taxes
  • A non-profit that purchases items to donate or use without profit does NOT pay sales tax

Benefits of Applying for an EIN

Even if your non-profit organization is not required to pay income taxes, you may want to consider applying for a federal tax identification number. A tax ID allows you to do several things that you would not be able to do otherwise. This includes opening a bank account or securing a line of credit in your non-profits name, hiring employees if necessary and keeping your personal assets separate from that of the non-profit organization’s assets.

How To Begin the Application Process

You can apply for a federal tax identification number online with IRS-EIN-Tax-ID. Simply select the non-profit tab as the type of business that you run and fill out information about you and your non-profit organization. Once you submit the application, it will take just a few business days to receive a response. Typically, you will receive your nine-digit tax number in your email. You can track your application using the EIN verification tool available on the website.

Are you interested in learning more about federal tax identification numbers, or do you need to apply for a personal service corporation tax ID number? You can receive the help you need by speaking to the professionals at IRS EIN Tax ID Filing Service.