Square introduced a new, free tool available to small business owners all over the U.S.: the EIN Assistant from Square Payroll. The EIN Assistant simplifies and streamlines the process of filling out the dense, legalese-filled forms required to create a separate tax entity for a business. It also gives small enterprises assistance with complicated IRS forms and legal filings usually reserved for much larger firms – all for free.
An EIN (Employer Identification Number) is effectively a Social Security number for a business. The IRS uses EINs to identify businesses for tax purposes and they are mandatory for certain business entities such as corporations, partnerships, and limited liability companies. About 20% 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.
With more than 500,000 new businesses formed every month, Square Payroll created and launched the EIN Assistant to remove friction for businesses looking to take the next step in their growth. Square’s EIN Assistant guides business owners through each step of the EIN application – IRS form SS-4 – via a simple questionnaire that features conversational, easy-to-understand language. Once complete, Square will also handle the IRS filing process, and the business will receive its EIN in 1-2 business days. As an added benefit for Square merchants, their EIN will be automatically associated with their Square profile when it’s approved.
“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 based in Atlanta, Ga, who is an expert in helping small business owners thrive. “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.”
Square Payroll already processes hundreds of thousands of payroll tax filings each quarter for employers in all fifty states, so the team is already well-versed in IRS systems and other tax-related features, making the EIN Assistant a natural addition to the existing service. A business does not need to be a Square merchant to use the tool, and unlike other websites, there’s absolutely no charge to use Square’s EIN assistant – it’s totally free.