Henek Consulting

In the financing world, some loans have ambiguous names that give no indication as to what they’re used for… we’re looking at you, SBA 7(a) loans. Other loans are thoughtful enough to put their intentions right in their name, and equipment financing falls into this camp. As the name suggests, it’s financing that can be used to purchase equipment (anything from tractors to office cubicles).

Equipment financing allows you to keep your working capital in your business instead of sunk into equipment. And as an added bonus, it’s excellent for building your business credit.

Because equipment financing is a more secure loan than most, lenders are quite willing to work with you. This is why an equipment loan can often be secured with only our 15-minute application – no additional documentation needed. And since there’s fierce competition among lenders to fund equipment loans, you can be sure you’ll get the best rates and terms possible.

If you’re not fond of down payments and collateral, get ready for some good news. The equipment that you’re financing can act as your collateral, allowing you to secure a loan without emptying your wallet on a bunch of upfront costs. As long as you’ve been in business at least 12 months, have $50,000 or more in annual revenue, and have a credit score of 650 or higher, you should be good to go.

IRS Form 1065 is formally known as the US Return of Partnership Income. It is used to report the income, losses, deductions, and other financial information for each partner in a partnership.

Importantly, no actual taxes are calculated or paid with this form. The form is used to report the partnership’s financial data to the IRS. Instead, the individual partners pay taxes on their personal filings.

Because partners are not employees, the partnership will send revenue and loss records to each partner on a Schedule K-1 form instead of Form W-2. Each partner then uses this information when filing their income taxes. The IRS uses Form 1065 to ensure accuracy.

An Employee Identification Number (EIN) is used to identify your business entity formally for tax administration purposes. Most American businesses are required to have one in order to operate. In its most basic sense, you could think of an EIN as a Social Security number for your small business.

Obtaining an EIN isn’t difficult: the IRS provides an application page with all the information you’ll need to get the ball rolling. If you run into any issues during the process, the IRS provides this helpful resource to answer common questions and outline various methods you can use to apply for your EIN.

Of course, it would be a shame to put time and energy into seeking an EIN if your business didn’t require one. The IRS recommends that you consider the following questions to determine your unique situation. If 1 or more questions are answered with a yes, you’ll need to get an EIN.

Does your small business have employees?
Does your small business operate as a corporation or a partnership?
Do you file these tax returns for your small business: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a nonresident alien?
Do you have a Keogh plan?
Are you involved with any of these types of organizations?
Estates
Plan administrators
Farmers’ cooperatives
Nonprofit organizations
Real estate mortgage investment conduits
IRAs, Trusts (except certain grantor-owned revocable trusts), Exempt Organization Business Income Tax Returns
If you discover that your small business needs an EIN, there’s no time like the present to get started. Follow the simple instructions provided by the IRS, and you’ll be the proud owner of an EIN in no time.

Once you’ve obtained your EIN, you’ll be ready to open a business banking account associated with the number. These are important milestones for any business, as they put you in a prime position to seek financing and begin your formal operations.