Employee Identification Number or EIN allows the IRS to identify you for taxation purposes. It is essentially a tax ID number for the federal government that is attached to your business. In order to apply for the EIN Number, one must have to fill the Form SS-4 from the IRS. EIN should be requested at no charge. Basically, it is a free process that is meant to be self-explanatory. However many people have trouble in navigating their way through the paperwork.
Reasons to Apply for an Employer Number
There are many reasons for which you need to file for an EIN. These reasons may include –
- For opening a new business.
- Hiring for any employees, even those in the household.
- In order to open a bank account one must require an EIN.
- Opening of a business line for the credit or bank account.
- Changing your business’s legal structure or ownership.
- Forming a pension, trust, LLC, corporation, non-corporation trust or partnership.
- Representing the real estate that entails a business once the owner has died.
What are the different steps by one can obtain an EIN?
Applying for the Employer Identification Number does not cost you anything and when it comes to how to get an EIN number, you have three options i.e. you can apply for an EIN via online, fax or through mail. If you are an international applicant, then you can apply for the EIN over the phone call. One thing that you need to keep in mind is that you cannot apply for more than one EIN per day if you own multiple businesses. Regardless of the method you choose, the information you provide from the IRS would be same. In order to apply for employer identification number you need to disclose these things such as –
- Your legal name
- Business structure (e.g. sole proprietorship)
- Reason for applying the employer number
You can apply for the Employer Identification Number by using any of the one way from these four ways –
Applying online for the EIN is one of the best and fastest way to obtain your EIN. You may be eligible to apply for an EIN Online for the business entity if you placate the following requirements –
- Your principal business is located in US or US Territories.
- The person applying online for an EIN must have either a Social Security Number (i.e. SSN) or an Individual Taxpayer Identification Number (i.e. ITIN) of the business.
- There is a limit that one can apply for one EIN for the business entity per responsible party per day.
- You can apply for the Form SS-4 online and obtain an EIN immediately.
To apply for an EIN for business entity by mail, one need to take out and fill out the Application Form SS-4. You can view the instructions to fill out the Form SS-4. You can mail your completed Form SS-4 to the appropriate IRS office. Depending on the state or province where you formed your LLC, this will either be a stamped/approved Articles of the Organization, Certificate of the Organization or Certificate of the Formation.
You will receive your Employer Identification Number i.e. EIN by mail within 4 to 8 weeks or possibly longer depending on how busy the state is. We highly endorse you that you can apply for an EIN as early as possible before you actually need to hire employee or open bank account.
If you have any questions while going through the online EIN Application you can call the IRS customer care number. The IRS hours to apply for an EIN are from Monday to Friday between 07:00 AM to 10:00 PM (Eastern Time). The earlier you call the IRS, the shorter the wait time is. Someone will take your information regarding your business entity over the phone and will assign you an EIN for the business entity at the end of phone call. The person making the call must be authorized to receive an EIN for the business entity and answer the questions concerning the Application Form SS-4.
If you were assimilated outside of US or US territories, you cannot apply for an EIN Online. For the international applicants, please call from Monday to Friday between 06:00 AM to 11:00 PM (Eastern Time) to IRS.
In order to apply for the EIN by Fax, one must have to complete the Form SS-4 and then have to fax the completed SS-4 application form to your state fax number. You do not need a cover sheet with your fax. You can just fax page 1 of the Form SS-4 to the IRS.
If you include your fax number in the application form, then you will receive your EIN by Fax within 4 to 7 business days. For the international applicants, you can send your completed SS-4 application form. The fax method to apply for an EIN Number is faster than mail.