We Provide assistance with all legal formalities to complete EIN number application
HOW TO APPLY FOR EIN NUMBER?
The IRS authority does the identification deed. Mostly there are different types of business entities, that trouble to be identified. But there is an EIN that is the unique number and uses to identify a business. In addition to this, there will be the requirement of EIN for many businesses that are going to add more employees to their businesses. Furthermore, there is only the Employer identification number that is for identifying every business entity. Therefore, the EIN will be working as a general tax number that will be used for filing tax returns.
Get to know easily that How to Apply for an EIN number and attain information on how to apply for an EIN number.
Get to know when you need an employer identification number-
- In a business, you hire people.
- When your business is working as a co-operation or partnership.
- You can file any of the following tax returns – excise, employment, alcohol, tobacco or firearms.
- You withhold taxes on non-wage income and pay for illegal aliens.
- Your business is involved in any of these types of organizations, such as trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers’ cooperatives and plan administrators.
Basically, the EIN is a unique nine-digit number that is issued by the Internal Revenue Service (i.e. IRS). In other words, an EIN is an employee identification number, just like a Social Security Number (i.e. SSN). For example, if you run a corporation, a limited liability company with more than one member or a business that hires employees, then you are most likely to obtain an EIN.
When is the EIN number needed?
Businesses need an EIN to pay their federal taxes online, file their annual tax return and issue payroll and tax documents to their suppliers. This number has less to do with employees and more to do with taxation, so if your business pays taxes (and that one does not), you need to have an EIN.
To receive an EIN, a business needs to be located in the US and the person applying for the EIN has to have their own taxpayer identification number, such as a social security number. A wide variety of entities may apply for and be issued an EIN, from sole proprietorships to partnerships, LLCs, corporations, government agencies, non-profit organizations and other types of organizations. A sole proprietorship with only the owner as an employee, as well as a multinational corporation or charity, can apply for an EIN.
Filing as a Responsible Party
You will be filing for the EIN as the “responsible party”, so you will need to be sure that you have the authority to make this filing. The IRS has set up the designation of “responsible party” to make sure that someone with the authority to do business for a company is completing the form. The responsible party should be an individual or entity that controls, manages or directs the entity and the disposition of the entity’s funds and assets.
What are the different steps to applying for an EIN number?
Applying for an EIN does not cost anything and, when it comes to how to get an EIN, you have three options. In other words, you can apply online, by fax, or by mail. If you are an international applicant, then you can apply for the EIN over the phone. One thing that you have to keep in mind is that you can not apply for more than one EIN per day if you own multiple businesses. The information you provide to the IRS is the same regardless of the method you use. You need to disclose these things, such as:
- Legal name
- Business structure (e.g. sole proprietorship)
- The following are the reasons for applying:
You can apply for an EIN in any of the four ways listed below.–
To apply for the EIN online, your principal business must be in the United States or US Territories and you need to have a valid taxpayer identification number (e.g. Social Security Number, i.e. SSN) to apply. The EIN online application form consists of these five parts –
- EIN Number Confirmation
According to the IRS, there are some important guidelines you must follow-
- need to complete the application form in one session, as you will not be able to save it and return it at a later time.
- For security concerns, your session will expire after 15 minutes of inactivity and you will need to start over if your session has expired.
Only international applicants can apply for an EIN on the phone. To apply for an EIN over the phone, call our Business and Specialty Tax department between the hours of 8:00 a.m. and 5:00 p.m. Eastern Time, Monday through Friday. There will be some queries to be answered by you and get them done to get your EIN. Only make sure before applying for the EIN, fill in the SS4 form to proceed with it.
If you do not want to apply for the EIN Number via “Online” means, then you can opt to apply via “Fax”. To apply by “Fax”, you must complete the SS-4 Form, Application for “Employer Identification Number”. You can fax the completed form to your state fax number whenever you like since it is available 24 hours a day. You must ensure that you have read it and have filled in all the columns of the SS-4 Form carefully to ensure you answer everything. Otherwise, you could prolong the process. The fax number you use depends on where your business is located. You can use any one of the following numbers to fax your SS-4 Form to the IRS –
- If your principal business, office or agency or legal residence is located in any one of the 50 states or D.C, then
- you have no legal residence, principal place of business or principal office or agency in any state.
You will receive your EIN by fax within four business days if you provide a return fax number and about two weeks if you do not.
If you are not in a big hurry, then you can apply via mail. To apply via mail, you need to complete the SS-4 form. Mail your completed SS-4 Form to the appropriate person at our office address. You will receive your EIN by mail within four to five weeks.
How do you get an EIN number if you lose it?
If you lose or misplace your EIN, don’t panic as you can get it back.
Contact us at [email protected] Often, you can do an EIN lookup without contacting the IRS. To get back your EIN, you need to first look through your physical and digital business documents. Try to find the computer-generated notice that the IRS sent you when you originally applied for your Employer Identification Number.
If you can not find the original confirmation, then you need to look at some documents that should have your EIN. The documents that should have your EIN listed are –
- Your bank account information
- Employee payroll records
- State account applications
- Small business tax returns
If you are still unable to find your EIN despite doing all the above steps, then you need to call the IRS Business and Speciality Tax Line number from 07:00 a.m. to 07:00 p.m. After you provide the identifying information, the IRS will do an EIN lookup and provide your EIN over the telephone. However, the person who is calling to IRS should be the authorized person (e.g. sole proprietor) to receive the EIN.
When do you need to have a new EIN number?
Sometimes, businesses need to apply for a new EIN from the IRS. You must apply for a new EIN if your business structure or ownership has changed.
- Your company has declared bankruptcy, which is only applicable to partnerships and sole proprietorships.
- If a statutory merger creates a new corporation or business entity, then you will have to apply for a new EIN number.
How to cancel your EIN number?
Once your business has received an EIN, the IRS will not be able to cancel it, as it will become the company’s federal taxpayer ID number. Your unique EIN will never be reassigned or reused by being issued to another business entity. So, if you do not end up using your EIN shortly, it will always be there if your business picks up later on.
However, according to the IRS, if you do get an EIN but you determine later on that you do not actually need it, the agency could close your company’s account. You would need to send the IRS a letter that contains the legal name of your business, along with its address, it is EIN and the reason why you want to close the account. Before your account can be closed, you must pay all of the taxes that you owe to your business.
Benefits of Having an EIN Number Number provides several advantages for your business, including the following: it provides security for sole proprietors or individuals.
- The EIN number assists businesses in establishing credit.
- It can help companies to obtain all of the necessary business licenses and permits.
- Employer ID number companies to open a bank account using your business name, as the bank will require you to have an EIN number along with all of the other necessary information.
- The EIN number assists you in avoiding tax penalties.
- The EIN number helps you to prevent identity theft.
- Lenders need to have an EIN number when applying for business loans.
- If you are a freelancer, then filling out tax forms with an EIN number would prevent you from giving your Social Security Number to everyone who paid you.
- If you are a sole proprietor, then you could use an EIN number rather than your Social Security Number when sending 1099 forms to any contractors or freelancers you pay for.
- For single-member LLCs, the EIN number allows you to maintain limited liability.