Do I Need an EIN for my Trucking Company?
Most businesses need an Employer Identification Number (EIN) but don’t worry, they are super easy to get. An Employer Identification Number—also known as a Federal Employer Identification Number or a Federal Tax Identification Number—is a nine-digit number that the IRS uses to identify a business. Think of it as a Social Security number for your business. It is also needed to open business checking accounts, apply for various licenses, and establish accounts with vendors.
Is my trucking company required to have an EIN?
Businesses required to obtain an EIN include corporations, partnerships, nonprofit associations, trusts, government agencies, and certain individuals or LLCs. In some cases, sole proprietorships are required to obtain one, unless they don’t have employees and don’t file excise or pension tax returns.
How do I get my EIN?
Getting your trucking company’s EIN is simple. It’s issued by the IRS and can be applied online, by fax, or by mail. The process is free of charge and is immediate if done online.
Businesses need to get a new EIN when their ownership or structure has changed. But it is not required when changing the name or location of the business or opening new locations.
What if I don't need my EIN anymore?
Once an EIN has been assigned to a business, it becomes the permanent identification number and cannot be canceled. If you determine you do not need the EIN, the IRS can close your trucking company’s account.
What if I have drivers from multiple states?
Trucking companies that have drivers in multiple states must have state tax ID numbers for every state where they have employees, as they need it to report and file state payroll returns with each state. This makes state tax ID numbers only useful in the state where it was issued.
Remember to check with your state to find out what type of identification number you may need for state purposes. Your state may have requirements for obtaining an identification number separate from your EIN.
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