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Thursday, March 28, 2024

Business: What Is A Personal Service Corporation Tax ID?

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[dropcap]I[/dropcap]n your research of the best type of business structure for your company, you will find that there are several different types of corporations. While the setup of these corporations is similar, there is a slight difference in the tax requirement, but you are still required to have a personal service corporation tax ID number to operate as a legitimate personal service corporation.

Set Apart

To qualify for a personal service corporation tax ID number, and to be approved as a personal service corp by the IRS, the owner/ employee must provide, at a minimum 20%, of the personal services themselves. This is because of the types of services provided by personal service corps.

business your research of the best type of business structure for your company, you will find that there are several different types of corporations.

Best Served

There are some industry’s who are better served by making their business structure an person service corporation due to the fact that as the owner they would be providing most of the services, at least initially, for the business. Some of those industries are:

  • Architecture
  • Accounting
  • Science
  • Engineering
  • Health
  • Consulting
  • Veterinary services
  • The performing arts
  • Law

There are other personal service industries like construction and auto repair that could also fall under the guidelines of a personal service corp. It always helps to speak with a tax professional to determine if you have the type of business that would benefit from structuring your business this way.

Here to Help

Personal service corporations have to submit an EIN application to receive their tax ID number. As there is a lot of information to research and understand, you may not be sure where to begin. IRS-EIN-TAX-ID.com will walk you through completing your federal tax ID application, and submit all the corresponding documents needed to complete your application process. While you focus on your business, they will handle your tax ID number paperwork.

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