The employer identification number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) used to identify a business entity. You may need to apply for an EIN if you are hiring employees, opening a business bank account or filing business tax returns.
Applying for an EIN is a free service offered by the IRS. You can apply for an EIN online, by mail, or by fax. The easiest and fastest method to obtain an EIN is through the online application.
Below we will outline the steps necessary to apply for an EIN.
1.Determine your eligibility for an EIN
To be eligible for an EIN, you must have a business presence in the United States or U.S. Territories. If your business has a foreign owner, you must have a U.S.-based employee who is authorized to sign tax documents on behalf of the business. The IRS will also require that you have a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN). Non-U.S citizens without an SSN can apply for an ITIN by filing Form W-7 with the IRS. If you need help determining your eligibility for an EIN, the IRS offers an Eligibility Questionnaire that can assist you in making that determination.
2.Gather the necessary information
Once you have determined that you are eligible to apply for an EIN, gather the following information that you will need in order to complete the application:
Business name and physical address
Names and SSNs of principal officers
Business start date
Type of business entity (sole proprietor, corporation, partnership, etc.)
Reason for applying for an EIN (new bank account, new employees, tax filings, etc.)
3.Apply for your EIN online
The easiest and fastest method to obtain your EIN is through the online application on the IRS website. When applying online, you will need: Your SSN, ITIN, or ATIN
Your contact information (name, address, phone number)
An email address to receive your confirmation notice Applying online is simple and only takes about 15 minutes. Follow these steps:
Visit www.irs.gov/ Step 1: Select “Apply Online Now” under “Online Services”
Step 2: Enter required information
Step 3: Review and submit Form SS-4
Step 4: Receive affirmation notice
Conclusion
An Employer Identification Number is required if you are hiring employees or opening a business bank account; however, it can also be beneficial if you are filing business tax returns as it allows businesses to easily track their taxes throughout the year. Applying for an EIN is a free service offered by the IRS and can be done online in just fifteen minutes. Be sure to have all of the necessary information gathered before beginning the online application which includes your social security number along with business name and physical address. After completing the official application on www.irs.gov
you should receive, and affirmation notice via email within four weeks stating that your application has been accepted. If four weeks have elapsed without any correspondence from the IRS, they strongly suggest contacting them so they can help determine why there has been a delay in processing.”
Responses