Why Do I Need an EIN Number?
An EIN number is required if you are starting a business and will be hiring employees. A sole proprietor does not need an EIN to start their business, but they will need one if they hire employees.
A sole proprietor can apply for an EIN by filling out Form SS-4 and mailing it to the IRS or by filing online at the IRS website.
An EIN number is necessary for:
- Making deposits into an account
- Paying taxes and other government fees
- Reporting employment taxes
- Filing for bankruptcy protection
- Filing forms with the IRS
What is the Process of Obtaining an EIN Number and Where Do I Apply?
Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service which means websites that charge for this service will never be an official IRS website.
All Business Entity Identification Number (EIN) applications must provide the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustee.
The IRS will designate an individual or entity to be in charge of the applicant. For people without governmental ties, a “responsible party” is in charge and must be a U.S. citizen, resident alien, or a qualified non-U.S. citizen living in the US.
How Long Does it Take to Get an Ein Number?
Receiving a new EIN is complicated and can take up to 4 weeks to process. But with the help of an EIN processing service, the process can be completed in as little as 24 hours. Here’s what you should know about applying for an EIN by mail and ensure that you filled Form SS-4 with all required information.
If it’s needed, a new EIN will be issued using the appropriate procedures for the entity type and mailed to you.
3 Ways You Can Apply and Obtain EIN Through Online
The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once they complete the application information, it’s validated online right away. They’ll receive their assigned EIN immediately!
All organizations that are based in the United States or any of its territories are allowed to apply for this service.
1. By applying through FAX
Taxpayers can fax the completed Form SS-4 after verifying that all of the required info is on the form. The form will provide you with a list of appropriate fax numbers based on your location.
If the company needs a new Tax ID, one will be automatically assigned. The process for obtaining it differs based on the type of company they are though.
The most common companies with a tax ID are incorporated entities and trusts. If a fax is given at the time of registration, you will receive your Tax ID within 4 business days.
2. By applying through MAIL
We ask that you submit a Form SS-4 in PDF format to apply for an EIN. The typical processing time is 4 weeks. Make sure your document includes all necessary information.
The IRS assigns an Employer ID Number (EIN) to all entities who need one, and this number is used for tax purposes. The EIN is assigned according to the appropriate procedures for that type of entity and mailed to the taxpayer.
For instructions for which forms should be filed, see Where to File Your Taxes (for Forms SS-4) page.
3. By applying through TELEPHONE
All International applicants may call 267-941-1099 (not a toll-free number) 6am to 11pm Monday through Friday to obtain their EIN.
In order to generate an EIN, the individual must have the authority to execute your company name and answer SS-4 questions on behalf of your company.
You can authorize the given person to act as your third party designee. This will allow them to access our company’s EIN and take responsibility for completing Form SS-4 on our behalf.
The designee’s authority to act on behalf of your company will end once the EIN is assigned and sent to them. Please make sure that you sign the designated area in order for this authorization to be valid.[1]
FAQs
What is tax exempt status before you apply for EIN?
If you’re sure your organization qualifies for tax exempt status but haven’t applied for a formal ruling, be sure it’s legally taken care of before applying for your EIN.
IRC 501(a) organizations are subject to automatic revocation of their tax-exempt status if they fail to file a required annual information return or notice for three consecutive years.
Once you apply for an EIN, we presume your business is set up legally. The three-year period starts ticking.
What is the purpose of Employer Identification Number?
Employer Identification Numbers are issued by the IRS to determine tax liability for an organization. These are not intended to be used for other purposes, such as tax lien auctions or sales.
Why Businesses need to have an EIN number and their benefits
The IRS requires businesses to register with an EIN in order to pay taxes and report certain information about their company. This includes reporting any income, deductions, credits, and other financial information on their business tax return.
The benefits of owning an ein are numerous:
1) Easier filing process
2) Taxes can be filed in less time
3) Easier access to loans
4) Ability to open a bank account
5) You will be able to pay employees through payroll
6) You can apply for government contracts
How long does it take for an EIN to be active?
The EIN takes about two weeks to be processed and registered with the IRS, which is why it can’t be used for electronic filing or electronic payments until that time.
How can I check my EIN status if EIN has been issued or not?
If you have filed a tax return in the past but can’t find your EIN, then it might be time to contact the IRS. You can call the Business & Specialty Tax Line at 800-829-4933 from 7:00 a.m. – 7:00 p.m., Monday through Friday to do so or use their online service.
How do you check if an EIN has been issued?
If you have a business and you want to know if an EIN has been issued, there are a few steps that you can take. The first step is to contact the IRS and ask them. If this is not an option, then the next step would be to search for your EIN on the IRS website. If this also doesn’t work, then you can contact your state’s department of revenue or tax agency.
