How to Get an EIN for your Home Daycare
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If you are running a home daycare, that is a professional business with income that is taxable. Find out how to get an EIN number for your home daycare so you can keep your social security number protected.
Filing taxes is an important step in owning a small business. Using your tax deductions and a federal tax identification number will help small business owners with a sole proprietorship or a limited liability company protect their personal assets and run a successful business.
Every family child care provider needs a unique number at tax time to file tax returns and give to their parents and tax preparer if you use one. Before you file taxes or give parents your yearly totals, use this free service to get your taxpayer identification number that protects your identity.
Why do I need an Employer Identification Number
An employer identification number is like a social security number for your business. It helps the IRS keep track of your income. If you don’t get one, you’ll be required to use your social security number for your taxes and that means giving it out to all of your daycare families. That’s not a good idea, so getting an EIN will protect your identity.
It’s free to get one and then you use that on your yearly tax receipt for parents instead of your social security number.
Twenty-seven years ago when I started home daycare, I didn’t know there was such a thing. So now that you know, get one! You don’t have to, but it’s better for you personally.
How much for an EIN number
Many people have asked how much it costs and when they googled it, they were directed to a place that charges for it. These websites are scams.
Free EIN Number
Just go straight to irs.gov and click apply for an Employer ID Number and fill out the form. Make sure to save it because you’ll need it over and over again.
Here’s what you’ll need:
- Name and address
- Social security number
- Date you started
- Number of employees
You can apply by fax or mail if you’d like, but it’s much faster to do it online.
How do I find my EIN number
Don’t forget to keep it in a safe place, because it’s a pain to get it again. If you do lose it, the IRS has suggestions on how to find it and a number to call to have them look it up. But you know if you call them it’s going to be a wait on the phone, so try not to lose it to begin with. Here’s the info on how to get it again.
EIN Number Lookup
For the last resort, call the Business & Specialty Tax Line at 1-800-829-4933. The hours of operation are 7:00 a.m. to 7:00 p.m. Monday through Friday.
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