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Does A Nonprofit Organization Need A Tax ID?

Does A Nonprofit Organization Need A Tax ID?

If you’re operating a nonprofit organization, you may assume you don’t need to get a federal tax ID number because you will get tax-exempt status. However, that isn’t the case. Even if you don’t file federal tax returns for your nonprofit, obtaining an EIN is still necessary.

Why Your Nonprofit Needs a Tax ID Number

You probably know that certain nonprofits are able to secure tax-exempt status. If you’re hoping to become tax-exempt, you’ll need an EIN. That’s right–in order to be granted tax-free status, you need a tax ID number. Your nonprofit also needs an EIN for the following purposes:

  • Paying local and state taxes
  • Setting up a bank account for the organization
  • Hiring employees
  • Applying for business permits

Thankfully, applying for an EIN for a nonprofit is easy with IRS-EIN-Tax-ID.com.

An EIN Doesn’t Prove Tax Exemption

It’s crucial to never confuse an EIN with a 501(c)(3) letter from the IRS. Just because you have an EIN doesn’t mean you are automatically granted tax-exemption by the IRS. Make sure you apply for 501(c)(3) status after you receive your EIN from the IRS.

How to Get an EIN for a Nonprofit

If you’re interested in obtaining a federal tax ID number for an estate, nonprofit, or any other business entity, the process is simple. First, make sure you are an authorized officer or member of your organization. Then, head to IRS-EIN-Tax-ID.com to begin the application. You’ll need to provide some details about yourself and your nonprofit, such as the legal name, mailing address, and physical address of the organization.

Applying for an EIN online is the easiest way to get one. The process is simple and you’ll get it quickly, meaning you can apply for tax-exempt status faster. If you need more information on getting a tax ID for your nonprofit, get in touch with the EIN professionals at IRS EIN Tax ID Filing Service.

The Blue Ink

Dhadha Garcia is a lifestyle blogger from Bacolod, PH. She is a mompreneur, a full-time blogger, and a content creator. She started blogging in 2007 and became one of the pioneers of the Negrense Blogging Society, Inc. (NBSI) in 2009, where she has received several awards and nominations for her blogs. She also writes at www.twenteenmom.com and www.classysweets.com.

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