Employee Identification Number or EIN Number 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 SS4 from the IRS. The EIN number 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 Number. 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 Number.
- 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 to 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 via online, fax or through the mail. If you are an international applicant, then you can apply for the EIN number over the phone call. One thing that you have to keep in mind is that you cannot apply for more than one EIN number 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 Number is one of the best and fastest way to obtain your EIN. You may be eligible to apply for an EIN Number online if you satisfy the following requirements –
- Your principal business is located in the United States or US Territories.
- The person applying online for the EIN Number must have either a Social Security Number (i.e. SSN) or an Individual Taxpayer Identification Number (i.e. ITIN).
- There is a limit of one EIN Number per responsible party per day.
- You can apply for the Form SS4 online and obtain an EIN Number immediately.
- Apply for the EIN Number by Mail
Print out and fill out the SS4 application form. You can view the instructions to fill out the Form SS4. You can mail your completed Form SS4 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 Number by mail within 4 to 8 weeks or possibly longer depending on how busy the state is. We recommend that you can apply for the EIN Number as early as possible before you actually need to hire or open the bank accounts.
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 Number 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 over the phone and assign you an EIN Number at the end of the phone call. The person making the call must be authorized to receive the EIN Number and answer the questions concerning the Form SS4.
If you were incorporated outside of the United States or the US territories, you cannot apply for an EIN Number online. For the international applicants, please call from Monday to Friday between 06:00 AM to 11:00 PM Eastern Time.
In order to apply for the EIN Number by Fax, one must have to complete the Form SS4 and then have to fax the completed SS4 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 SS4 to the IRS.
If you include your fax number, you will receive your EIN Number by Fax within 4 to 7 business days. For the international applicants, you can send your completed SS4 application form. The fax method to apply for an EIN Number is faster than mail.