From supplies to employees, pizza shops need to manage a lot from an administrative standpoint. When opening a pizza shop, one of the first things a business owner should do is acquire an EIN, or Employer Identification Number. A tax ID number, an EIN is necessary to start your business operations. You can acquire one through an easy, online EIN application.
Steps to getting a Tax ID (EIN) Number for your Pizza Shop
- What is a Tax ID (EIN) Number?
- Does a Pizza Shop Need a Tax ID (EIN) Number?
- How to Get a Tax ID (EIN) Number for a Pizza Shop Online
- Why Does a Pizza Shop Need an EIN Number?
- How Long Does It Take to Get an EIN for a Pizza Shop?
An EIN, also known as a tax ID number, is an identification number that tells the federal government, banking institutions and other businesses who your business is. Like a Social Security number does for individuals, an IRS Employer Identification Number makes it possible for businesses to establish reputation and credit, pay taxes and perform other business-related actions.
For a pizza shop, it’s difficult to begin operating without an EIN, because an EIN is necessary to both hire and pay employees. An EIN is used on initial employment applications to create a relationship between the employer and employer, as well as on the forms that are used to pay payroll taxes on behalf of the business and on behalf of the employee.
Pizza shops also have other ,unique reasons for needing an EIN: they need to lease restaurant space, acquire restaurant equipment and get licenses and permits related to cooking and serving food. Luckily, it’s fairly easy to get an EIN number for a pizza shop. In fact, as long as you have all the information accessible, you can usually get an EIN in an hour by going through an online application process and using a tax ID service.
In short, yes, you do. A pizza shop is always going to need to have a federal tax ID number, also known as an EIN.
A pizza shop needs an EIN for a number of tasks, including:
- Hiring cooks, drivers and other employees.
- Paying payroll and federal taxes for employees and income.
- Purchasing supplies for the restaurant through wholesalers.
- Getting a leased space and leasing equipment for the pizza place.
- Purchasing and getting loans for company cars or insurance for deliveries.
- Acquiring certifications, permits and licenses for running a restaurant.
- Acquiring business loans, bank accounts and business lines of credit.
- Acquiring a merchant account to process credit card and debit transactions.
These are only some of the reasons why a pizza shop would need an EIN or tax ID number.
Your EIN online application process is going to be fast and simple as long as you have the information that you need. In order to get an EIN or federal tax ID number, you will need the contact information and Social Security number (or ITIN) of the pizza shop’s owner, a partner in the business or a registered agent. This is going to be used to identify the point of contact for the business.
In addition to this, the EIN online application will also need information about the business: where the business is located and how it is incorporated. Once you have this information, you can send an application in online and receive your EIN back quickly. As long as everything is correct on the application, most people will be able to receive their EIN within an hour.
You can also apply for an EIN through postal mail. This will require the filling out of the same form, but it will be mailed in directly. While you’ll still get an EIN back by doing this, it can take up to six weeks. Applying through fax is also possible, but it will take three to four business days.
Though an EIN is called an Employer Identification Number, it’s used for more than that. As a unique nine-digit number used to identify your company, your EIN is going to be used by:
- Your employees.
- Food wholesalers.
- Insurance companies.
- Lease agents.
- Bank lenders and creditors.
- Equipment lessors.
- Government permit offices.
- Federal and payroll taxes.
If you are a sole proprietor, it’s possible to use a Social Security number in place of an EIN, but that often inextricably links the permits, licenses and leases to you rather than to your business entity. An EIN is affordable to get and can streamline paperwork significantly.
Any time a company wants to purchase a major asset, lease a major asset, hire an employee or get a license or permit, it will usually need to offer up an Employer Identification Number or tax ID number.
It can take up to six weeks to get an EIN if you apply through the postal service. Processing time is dependent on the season; during lighter seasons, it may only take four weeks. Regardless, applying for an EIN through the mail will take considerably longer than applying for an EIN online, via fax or over the phone.
If you’re going to open a pizza shop, you’re going to need an EIN. Most companies are going to need an EIN at some point during their operations, just to get a business account and pay their taxes. An EIN is only optional for sole proprietorships that don’t have any employees, and even then they may need an EIN if they want to start a 401(k) or explore other employment-related options.
A tax ID service can help a pizza shop get its EIN through a fast online application process, letting you start the process of opening your doors, getting business loans, hiring employees, acquiring permits and opening business bank accounts.