SMBs

Square Launches SMB Tax ID Tool

Square Helps SMBs Create Tax Infrastructures

Square has announced a new, free tool to help businesses file for an Employer Identification Number (EIN) called the EIN Assistant, according to a release.

The tool’s purpose is to simplify the difficult EIN acquisition process to create a separate tax infrastructure for the business. In layman’s terms, an EIN is like a business’ Social Security number; the Internal Revenue Service (IRS) uses it to help identify businesses when it comes to tax issues.

“About 20 (percent) of businesses will have employees and require an EIN to pay them and their payroll taxes, while hundreds of thousands of other sole proprietors will choose to incorporate with an EIN to professionalize their business and separate it from their personal identity,” Square said in the release.

According to the company, upwards of half a million new businesses are launched every month, and it launched the service to help them grow organically with the right tools.

The platform guides a business through each step of the application process, including filling out an IRS form SS-4, in a conversational and user-friendly manner. Square will also file the form, and the business owner should receive an EIN within two business days. Square will automatically associate a business’ EIN with its Square profile.

“Too often, an opaque and confusing process can scare a small business away from taking a critical step forward toward their goals,” said Titilayo Tinubu Ali, entrepreneur, attorney, business advisor and founder of Own Your Expertise in Atlanta, Georgia. “Reaching a new level of professionalism can have a huge impact on the momentum and success of a young business, so making the EIN process more transparent and easier to complete – especially at no cost – can drive continued growth for entrepreneurs in all corners of the country.”

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