Tax Law (Questions About Taxes)/EIN

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Question
Good Evening,

My husband and I own our own business. When I applied for our EIN and it asked what type of business in do I entered Lawn Care. WE still do lawn Care but we now also do property preservation work on foreclosed homes. No construction. Do I need to apply for a new EIN? Thank you for your time.

Answer
There is a difference between and EIN and a NAICS code (Employer Identification Number, North American Industry Classification System) formerly known as an SIC (Standardized Industry Classification).

When you applied for an EIN, you registered your business as a tax paying entity. Each Business only gets one of these. That won't change unless you change owners.

The EIN application also get you an initial NAICS code. A business can have more than one NAICS code. One for each classification of business.

Not having all the possible NAICS codes that your business might fit into won't hinder you doing any business, it simply won't key in the Government that you are a fish in one of their defined ponds. The Federal Government like to track industries, so that they can create charts and tables and projections of revenue in each industry. The most tangible thing for a business owner about a NAICS code is the opportunity you may have to fill out a questionnaire in an industry. Not classified in that industry, no paperwork.

Richard Fritzler

Tax Law (Questions About Taxes)

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Richard Fritzler

Expertise

Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

Experience

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

Organizations
National Small Business Owners Association.
Publications
Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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