Most of the small businesses need to have an Employer ID Number (i.e. EIN Number). Although this form is used for the identification of employers, it is also required for other legal purposes and you will be most likely be required to supply it to open a bank account and other applications. Learn more about how you can apply for an EIN number online, step by step.
Before You Begin the EIN Application Process
Before you begin with the process of applying for the EIN Number online, you need to take the printout of Form SS4 and answer all the questions. This online application form takes some time to complete and the EIN Assistant will time you out if you delay too long in answering the questions about the EIN Application form. You would not be able to save your information and come back again later.
What are the different steps for applying an EIN Number Online?
To apply for EIN Number online, you need to follow these steps:-
Go to the IRS EIN Assistant Page
First you need to go to the EIN Assistant, online at the IRS website. One thing you need to make sure that you do not have a fake EIN application website. Look carefully at the below URL –
Your URL should be – https://sa.www4.irs.gov/modiein/individual/index.jsp and the heading should be IRS.gov with the IRS logo to the left of the homepage.
Set your type of the Legal Structure
Select the legal structure of your business. When you click on the “Continue”, you will see a page describing the income tax structure for this type of the business. If your business is an LLC, then you will be asked how many members (owners) this EIN Application may have.
Why Are You Applying an EIN Number Online?
One must have an EIN Number because of –
- New business
- Need to hire the employees within the next 12 months
- For the banking purposes
- Changed type of the organization
- Purchased an active business
- Designate Responsible Party
You must designate a responsible party so as to sign off on your EIN Number. The responsible party must be someone associated with the business who have the authority to sign for the business. One thing you need to understand is that there is a difference between a “nominee” and a “responsible party”. If you are not sure who to designate for this item, then you can consult an attorney for his/her help.
- Provide information about your business
You must need to submit this information such as for your EIN Number –
- Legal name
- Trade name/DBA if the different from the legal name.
- If a corporation, partnership or the LLC, the country/state in which the business is registered.
- The start date of the business (month/year). The start date is very important if you are starting at the end of your fiscal year. You need to check with your tax advisor about the tax implications of the startup dates.
- Include Applicable Taxes
The things that are engaged in applicable taxes are –
- Highway motor vehicle operation
- Federal excise taxes
- Alcohol, tobacco or firearm sales
- Number of the employees expected in the next 12 months
- Describe Business Category/Business Activity
- You must choose a type of business activity. If you cannot find your business category, then you need to select “Other” and enter the activity in the box provided.
How You Want to Receive Confirmation
You have the option to receive your confirmation letter online or by the mail. The mail option takes upto 4 weeks. If you have to take the confirmation to a bank, taxing authority or lender of the business, take the online option.
- Review the Information
You must have an opportunity to review the information you have entered in the EIN application form before you submit the form. If something is incorrect in the application form, then you must begin with a new application.
- When You Receive Your EIN
When you have received your EIN Number, print out the number or write it down. You will need it for lots of documents during the startup. You will also receive a confirmation by mail, which you should keep in a safe place.