Business

Why You Must Have A Virginia Tax ID

If you own and operate a business in Virginia, you need to secure a Virginia tax ID and should consider doing so even if it isn’t required. This tax ID number or employer tax ID number is your identification for your business. This will identify you as a unique individual by the government, financial and other institutions. If you have this tax ID number, you separate your personal obligations with that of your business liabilities.

A Virginia tax ID number will continuously identify your business even if there is a change in name, focus or location. This will allow entrepreneurs to capitalize on tax, regulatory and financial benefits developed in previous years. So long as the business ownership and operating status never change, your tax ID number will remain the same and will grow together with your business. However, if the business will change its owner, there is a need to secure a new number as it is issued to the name of the previous owner. This can happen if the business will incorporate with new partners. A new tax number is also required should the business file bankruptcy or establish a retirement plan or profit sharing.

To obtain a Virginia tax ID, you don’t need to be an employer. You are required such if the business your operating is a corporation or partnership, collect sales tax or offer taxable products or services, have employees and withhold their income taxes, have a Keogh plan, or file a federal tax return. It’s also necessary to apply for a business license or to open a bank account.

Application for a Virginia tax ID is so simple and easy. You just need to access the IRS website and download the form SS-4 and accomplish it. You can even do it online and a tax ID number will be issued to you instantly. Ensure that you have saved and printed the confirmation page as it will take two weeks from the date of issuance for your new ID number to be integrated into the IRS database. Some businesses may need to wait a little further before they can file their electronic returns and make electronic payments.