You have just started your business, and you may be wondering how to get a Tax Identification Number (TIN). But what is it? Why do you need it? Does it cost money to get?
What is a TIN?
A TIN is your Tax Identification Number. This will be the way that the FIRS (Federal Inland Revenue Service) identifies your business. This number allows you to open a bank account for your business, pay your employees and file your business’s taxes. Essentially, this is your business’ Social Security Number.
Want to learn how to get an TIN?
Do I need to get an TIN?
Every business will need a TIN. Sole Proprietor, Limited Liability Company, Non-profit etc.
Why do you need a TIN?
You may need to obtain a TIN for a number of reasons, including business, estate, or trust banking, and hiring employees. Businesses also need TINs when they are required to file statutory returns.
The following are reasons why you may need a TIN:
Banking and finance – In all cases, banks require a validETIN in order to open a bank account for any type of business entity. Having a TIN may also be helpful for a business seeking to obtain financing or working capital.
Employees – If you are hiring employees (whether one or many), you will need an TIN. This is the number the FIRS will use to track your income taxes.
Government Applications – If you’re looking to access governmental Services like loans, licenses, Certificate of Occupancy, foreign exchange etc. you’ll be required to present your TIN
How To Get A TIN?
If you have a lawyer helping you incorporate your company or register your business, then chances are they will show you how to get an a TIN.
What documents do you need to get a TIN?
Corporate Affairs Commission Certificate of Incorporation and other Incorporation Documents.
Application for TIN on Company Letterhead.
Duly filled FIRS forms
Means of Identification
Company Seal (Stamp)
Additionally, getting an TIN is a free service that the FIRS provides but Lawyers may require you to pay them a service fee to help you process the application. The application takes about 4 working days.
At AffordableLaw, we help our clients procure the Tax Identification Number for N10,000.
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