How to Apply for A Tax ID Number and Why

Tax informationWhen you start a business, you need to apply for a Tax ID to make your company legitimate in the eyes of the law, and to avoid trouble during tax season. Here is more on applying for a tax ID number and how to do so with minimal hassle:

Tax ID for Businesses: Most new businesses need a Tax ID. If you are starting a business that will be hiring employees, you will need to file for an Employer Identification Number, or EIN, which will essentially double as your company’s tax id number.In addition to filing taxes, an EIN can be used to work with banks and even open a line of credit.

Tax ID for Individuals: For individuals, the social security number doubles as a Tax ID. People who do not have a US social security number but are working in the US as a non-resident or a resident alien, will need to apply for an ITIN or Individual Tax ID Number. The same applies for spouses or family that are claimed on a tax return. The ITIN is used exclusively for tax purposes.

Obtaining a Tax ID: Whether you are applying for an individual or company, getting your tax number online is the fastest and often easiest option. You can also submit the necessary forms by fax or mail. However, submitting by either fax or mail means waiting about a month for your Tax ID to be mailed. If you are applying for an EIN, you’ll need to submit form SS-4 and will also need to determine the entity of your business. If you are applying for an individual ITIN, you will need to fill out Form W7.

When it comes to taxes, it is important to comply with federal regulations and have the appropriate forms in order. If you need a Tax ID, it is best to apply well before tax season to help avoid stress.

5 Important Factors that Influence your Car Insurance Rates

Car insuranceCar insurance benefits and premium costs invite a number of assumptions from the prospective car owners. Doubts on insurance cost may keep you from acquiring adequate insurance coverage. The state minimum insurance requirements have to be maintained by the all drivers under all circumstances. For those of you that are more concerned about protecting yourselves and your loved ones, it’s advisable that you carry additional coverage.

Consider a few key factors that can influence your car insurance rates:

1. Owner’s Driving History

The number of accidents you’ve been involved in, the number of instances you’ve received tickets, and the distance that you’ll cover by car are few of the important areas that are touched upon by insurance providers prior to offering a car insurance quote to you.

Your driving habits are reflected by the information that you share with them. This, in turn, helps an insurer determine your risks on road and thus raise or lower the rate of premium accordingly. Your premium cost is likely to be higher when you’re more prone to the risk of an accident.

2. Personal Information of the owner

Factors that play a crucial role in determining the risk that you pose towards your carrier include occupation and age. These factors enhance your chances of filing a claim. While on road, a teen driver carries more risk compared to a driver in his forties. He’s more likely to fetch higher premiums than the latter.

The distance that you cover while going to work every day often influences your premium cost. More distance you cover, more susceptible you become towards meeting an accident. Apart from this, neighborhoods witnessing more of vehicle thefts and break-ins are likely to draw more premiums. Chances of your car being stolen or damaged increase your risk of filing compensation in the eyes of the insurer.

3. Credit score of the owner

Can your credit score impact your car insurance rates? Instead of your SAT score, your credit score becomes more of a premium determining factor once you turn 18 years of age. Obtaining loans pertaining to your personal needs or buying property and assets get difficult when you have a low score. It might seem unfair to utilize the credit score for determining your premium rate, but it’s a normal practice as of now. This way, you can maintain your finances and help ascertain your likelihood towards filing claims.

4. Information pertaining to the car

Insurance companies are here for risk mitigation. In their attempt to offset the assumed cost of covering high-risk individuals, the insurers need to charge higher premiums. The risk you pose towards your insurer also gets determined by the car model that you’re using. Factors like the make and year of manufacture play a key role in determining the way you drive and the risk of it getting stolen. The cost of your vehicle should also be taken into account as more expensive body parts affect repair costs in the event of an accident. You may lower the risk associated with your vehicle by installing a few known safety features.

5. Types of coverage possessed by the owner

Drivers are needed to carry Property Damage Liability and Personal Injury Protection worth a certain amount as per their state laws. The rate of premium increases when you add other coverage options in the form of Under insured Motorist coverage and Collision and Comprehensive coverage.

Your monthly payment tends to be higher when you opt for a higher coverage limit. Your premium even gets affected by the deductible you choose. The rate of premium tends to increase when you pick a lower deductible.

Towing services, car rental coverage, and accident forgiveness are some of the other factors that create an impact on your car insurance rates.