In United States, every business need to have an EIN. Basically, EIN is a nine-digit unique number issued by federal government. EIN is used by IRS in order to quickly and easily identify each business for tax purposes. Once your business or organization is registered legally, then you may apply for an EIN. IRS use your company EIN so as to track your business income tax. Apart from this IRS use EIN so as to receive tax that you are required to pay. If you do not have an Individual Taxpayer Identification Number or Social Security Number, then your EIN will be used.
Why your business need to file for an EIN?
Here are some of the reasons which tell you why your business need to have an EIN –
- As you are operating your business or organization as a partnership or corporation.
- Your business or organization has employees.
- Business withholds taxes on income that is paid to one or more non-resident aliens.
- Have a Keogh plan, which is the retirement plan for those individuals who are self-employed.
- You file any of the following tax returns such as – Excise, Employment and Alcohol, Tobacco and Firearm.
- If your business is involved in any of these types of organisations such as estates, trusts, non-profit organisations, real estate mortgage investment conduits, plan administrators and farmer’s cooperatives.
- You are importing goods to US such as for sale on market places such as Amazon. Customers need to require an EIN when goods are valued over a certain amount or if you ship them to US by sea.
How to apply for an EIN over the Phone?
In order to obtain an EIN over the phone, one need to call IRS and have to press the appropriate number from the menu so as to receive a foreign EIN. One can call the IRS customer care number from Monday to Friday from 06:00 AM to 11:00 PM (Eastern Time).
If you authorize someone to take the phone call, make sure that you authorized him to get an EIN. One can take an EIN either as owner of the business or as a third party designee who is authorized to act on your behalf for your business. One need to answer the few questions related to the Application Form SS-4. You can get these questions by visiting the IRS website and searching for the Application for Employer Identification Number. One need to fill out the Third Party Designee section in the form, if you wish to authorize someone else to receive your business EIN and to answer the required questions on your behalf prior. You need to fill out the signature area, without which the authorization is invalid.
At the end of your phone call, you will be issued an EIN, which you can start using right away. You need to write this EIN and keep it in a safe place, as your physical copy will come in the mail to your US address in 4-6 weeks. If you do not have a US address, then you can ask the representative to mail EIN internationally or send it via email on your registered email id.