EIN (Employee Identification Number) is a number that every firm must have when filing taxes. Generally, firms utilize their EIN number to show their legitimacy. Businesses may use this EIN number to open a new bank account for their company or to apply for loans. Businesses are given an EIN by the IRS to file their taxes correctly. As a result, having an EIN is required for every business. However, QuickBooks Error 30159 is frequently encountered by users due to a missing or inaccurate EIN. However, there are many additional advantages for having an EIN, which are covered in a further portion of this blog.

Want to get in-depth knowledge about the benefits of using an Employee Identification Number and need immediate help? Get in touch with our experts and get all answers to your queries within the least time possible. 

What are the benefits of having the Employee Identification Number? 

Before you start any sort of business, you must have an Employee Identification Number to file taxes and for several other purposes. Below we have mentioned some of the advantages of having an EIN in the section below.

1. Obtain an EIN in order to apply for business permits:- 

Before the startup of every business, you must have all of the appropriate licenses and permits. In order to operate lawfully, almost every business needs some sort of license or permit. Business licenses, seller's permits, and zoning permits are just a few examples. The types of permits and permissions you need, basically depend on the type of business you run and where it's located. Every business, no matter how little, requires a minimum operating license or permission.

2. Acquire EIN to File Tax Return:- It is mandatory for every organization to have a valid 9 digits of an EIN number to file taxes. An EIN is comparable to a person's Social Security Number (SSN). It's a Federal Tax ID, a number issued by the Internal Revenue Service and is used by the IRS to identify your company for tax purposes. You'll need to give precise information when filing for an EIN. Applying for an EIN to hire staff is one example of such information. The IRS system will enroll you in the Electronic Federal Tax Payment System once you've provided the information (EFTPS).

3. For the expansion of the company:- All business owners want to expand their businesses, and you may need to take out a loan to do so. From creating company checking and savings accounts to qualifying for a loan, all banking transactions will require an EIN. Having your EIN in place before you start filling out loan documents (and establishing your business with a bank) might help you secure the financing you need to expand.
4. Prevents Identity Theft:- One of the most effective ways to secure one's identity is to obtain an EIN. An Employee Identification Number separates your personal and corporate funds. You will no longer be required to submit your social security number to vendors or clients you do business with once you have your EIN. You may keep your Social Security Number private by supplying an EIN, reducing the danger of a thief stealing it and profiting from your hard work.

Need Any Additional Help!!

Here we come to the end of the blog and hope that now you have understood the reasons why EIN is important for the business. To avoid QuickBooks Error 30159, ensure that the EIN is not missing from the company file. For any additional help, please consult with one of our specialists.