Every organization in US need to have an Employer Identification Number (EIN), even if it has no employees in the organization. EIN is a nine-digit unique number which identify an organization to the IRS. In order to apply for an EIN one need to obtain the application Form SS-4 from IRS website. One can apply for an EIN from IRS website – online, by mail or by fax. One may also apply for an EIN by phone, if their organization reside outside of US or US territory.
What is the eligibility to apply for an EIN?
In order to apply an EIN for the business, business need to reside in US or US territory. The person applying for an EIN need to have his own taxpayer identification number such as SSN. A large variety of entities may apply for and be issued an EIN for their business or organization. These entities may include sole proprietorship to partnership, LLC, government agencies, non-profit and other type of organization. The sole proprietorship with only owner as an employee can request for one EIN, as can be the multinational corporation or the charity organization.
Why one need to have an EIN?
Businesses need to have an EIN so as to pay their federal tax return, to file their annual tax return and to issue the payroll to their employees. One also need to have an EIN so as to give tax document to the suppliers of an organization. EIN has less to do with the employee and more to do with the tax return. So, if your business pay tax, then you surely you need to have an EIN for your business or an organization fro the IRS.
How individual can apply for an EIN?
An individual can apply for an EIN via online, by mail, fax or by phone.
Apply for an EIN Online
This is one of preferred and easiest method that most of the customers may choose. In order to apply for and obtain an EIN Online, one need to fill the online application Form SS-4. Once the application form is completed, the information filled in application form are validated. After the validation of the application form SS-4, EIN for business is issued immediately to an individual. In order to apply for an EIN Online, one need to follow these steps such as –
Determine your Eligibility
- You may apply for an EIN online if your principal business entity is located in US or US Territories.
- The person applying for an EIN online must have a valid Taxpayer Identification Number (i.e. SSN, ITIN and EIN).
- You are limited to have one EIN per responsible party per day.
Note – The responsible party is the person who ultimately owns or control the business entity or organization. They may exercise the effective control over the business entity.
Understand the Online Application
- One must need to complete the Application Form SS-4 in one session as you will not be able to save and return at a later time.
- Your session will get expire if you remain inactive for more than 15 minutes. In that case you need to start over again from the beginning of the application form.
Submit your online application
After you have completed all the validation of the Application Form SS-4, you will receive your EIN immediately. You may then download, save and print your EIN confirmation notice.
Apply for an EIN by Fax
Taxpayers can fax the completed Application Form SS-4 by Fax, after ensuring that the application form contain all the required information in it. If one has provided the taxpayer’s fax number, then one may get back a fax with EIN on that Fax number in the time span of 4 business days.
Apply for an EIN by Mail
The processing time frame for getting an EIN application received by mail is 4-6 weeks. To apply for an EIN by Fax, one need to ensure that the application Form SS-4 may contain all the required information. If it is determined that the entity needs to have a new EIN. In that case one will be assigned new EIN using the appropriate procedure for entity type and mailed to taxpayer at following address –
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Apply for an EIN by Phone
To apply for an EIN by phone, international applicant need to call the IRS Specialty number from Monday to Friday between 06:00 AM to 11:00 PM (Eastern Time). One can also assign third party designee to apply for an EIN. In this case, the assigned person making phone call must be authorized to receive an EIN. You must also need to complete third-party designee section so as to authorize the individual to receive entity’s EIN. The designee’s authority may terminate the assigned Employee Identification Number and released an EIN to the designee. You must need to complete the signature area for the authorization to be valid so as to assign that person your designee.