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Do You Need an EIN Number Under The Corporate Transparency Act?

 

An EIN (Employer Identification Number) is like a Social Security Number for your business. You now need one to open a bank account.

 

But there are many business owners who don’t have an EIN number. This could be from the advice of their CPA. Or maybe, somehow, they never bothered to get one. But with the passage of the Corporate Transparency Act (CTA), every business entity is now required to have an EIN.

 

Under the CTA, companies are required to submit a Taxpayer Identification Number (or TIN) to FinCEN. This TIN can be an Employer Identification Number (EIN), a DUNS Number, or a Legal Entity Identifier (LEI). In most cases, you will use your EIN.

 

This may come as a shock to many business owners. Many of them don’t have an EIN, and never thought they needed one. Many get by without ever obtaining an EIN. Unfortunately, this is no longer the case.

 

And what happens if these business owners don’t get an EIN number, and then fail to file their CTA? They could face very steep penalties. These include up to $10,000 in fines, or even spending 2 years in jail.

 

For business owners, the answer is very clear: Get an EIN number, or face the consequences.

 

Luckily, Corporate Direct is here to help you navigate the CTA. We will perform your CTA filings, and can also obtain an EIN number for you. It’s now just one of those things: It isn’t hard, but it’s necessary.

 

 

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