We recommend all our businesses to file for their Federal tax identification number (FEIN). Get your FEIN immediately, online, and for free with the IRS. The FEIN is a nine-digit number assigned by the IRS to identify the tax accounts of employers and business entities.
Even though we recommend all of our businesses to get a FEIN, there are times they are absolutely required (e.g., LLC goes from 1 owner to 2) and times when they are not (e.g., business location changes). Keep reading to determine if you need a FEIN for your sole proprietorship, corporation, partnership, or LLC.
It is imperative to know who are you issuing shares to when you are an S-Corp. Inadvertently issuing shares to the wrong person or entity may revoke and terminate your S-corp status automatically. If this is not planned it may throw an unintentional wrench into your tax filing.
This article is a detailed resource on S-corp shareholders. Continue reading to find out more about who can and cannot be a shareholder, plus other limitations, of an S-corp.
CPA + Owner of Hoppe Tax