EIN or Employer’s Identification Number is your distinctive business identity. It is an essential tool for any business entity to operate. The purpose is similar to your SSN to a professional aspect. Knowing how to request an EIN is necessary, and the process isn’t complicated.
There are different and convenient ways on how to request a tax ID. If you want to weigh your variables, read along and explain each detail before even going through your application.
What’s An EIN, And Why Do I Need It?
The EIN is a unique identifier used by the internal revenue system for various business entities. Regardless if you have employees or not, you’ll need an EIN to operate. Several banks need an EIN prior to business checking account application. Employer Identification Number is like your business Social Security Number. Aside from employment tax id purposes, it’s also used as your general business tax number.
Before you request an EIN, there are several vital information required to be filled in the performance section. You can apply for ss4 online form from the IRS website, print the copy, answer all queries, and submit it back via snail mail or fax. In case you find filling up the EIN form complicated, you can ask a lawyer’s assistance or check for an alternative option to complete the application, like the tricky part and designated the type of your business entity.
EIN, also known as FEIN or Federal Employer Identification Number, are unique 9-digit numbers assigned by the IRS to every business entity. In case you apply for your business EIN, make it handy for tax and business documentation. They are used for:
- Tax wage statement
- Employer’s or business annual tax return
- Employer’s or business quarterly tax return
- Employer’s or yearly FUTA business (Federal Unemployment Tax Return
- US Corporation Income Tax Return
Not every business entity requires having an EIN to operate. The IRS identifies which business requires a tax ID. Here’s a quick guide of which entity needs to apply for an EIN:
- Partnership or corporation business structure
- If you have employees
- If you file employment: excises firearms, tobacco, and alcohol tax returns
- If you’re involved with estates, qualifying trusts, plan administrators, farmer’s cooperatives, or non-profits
- It comes with the Keogh plan
How To Apply For A Tax ID/EIN?
When applying for an EIN, it won’t cost you much; in fact, it’s free, and there are four ways you can submit your request. One thing worth noting is that you are only eligible to apply for one tax ID per day if you own multiple businesses, as the information you’ll provide with the IRS will be consistent, regardless of which method you choose.
- Online
Most businesses submit their form through the EIN Assistant page or online application form. Even the IRS recommends using the system if you’ll get your EIN. It’s accessible between 7 am to 10 pm, ECT, Mondays – Friday. Make sure you have all your information ready and complete before going online.
As the process is timed, you’ll be cut off and start over if you pause and figure out your answers. You are required to finish the procedure in just one session as you cannot save or retrieve your details later. In case you’ve been inactive for 15 minutes, your session expires and needs to restart over again.
The online process has five-phase:
- Identification
- Authentication
- Addresses
- Details
- Confirmation of EIN
Note: If you already get a tax ID online, you’ll need to request via mail or fax next time.
You’ll need to send your filled out Form SS-4 to the corresponding IRS office for snail mail procedure. In response, you’ll receive the EIN via letter or mail within the four weeks duration.
- Fax
If you have chosen to submit your request via fax, you’ll need to submit the Form SS-4 application to your corresponding state fax number. To receive your EIN, immediately include your details like the fax number, and you’ll have your notification within four days after sending it.
- Telephone
The phone application is only applicable to international applicants. You may call the Business and Specialty Tax Line from 7 am -10 pm, Mondays through Fridays via local time. Customer support will assist you, and prior to the end of your conversation, you’ll receive your tax ID.
Conclusion
Requesting your distinctive employer identification number is vital to every business. This offers professionalism and improves your business credibility as your business grows. Obtaining your EIN sooner than later can help you focus on other essential factors. Whether your a single-member planning to transition to a corporation or partnership, securing your business identity is vital.
