An Employer Identification Number (i.e. EIN) is a unique identification number which is assigned to a business entity so that it can be easily identified by the Internal Revenue Service (i.e. IRS). EIN is also known as a Federal Tax Identification Number or Tax Identification Number (i.e. TIN). EIN is commonly used by employees for the purpose of reporting taxes. Basically, it is a unique nine-digit number issued by Internal Revenue Service (i.e. IRS) and is assigned to every business operating in US for the purpose of identification and taxes.
How one can get the EIN number for their business?
There are many instances when one come across the need for an EIN while working through a business document or application and you come across a question asking for your EIN and you cannot remember it. The three best places where one can find their EIN are –
- From the business tax return of the previous year.
- Original document of your receipt or the document you received from the IRS when you applied for an EIN.
- From the state’s business division website, if you are registered your partnership, LLC or cooperation with your state.
How do you get the EIN number for their business?
If you want to hire employees for your business, then you need to have an Employer Identification Number (i.e. EIN). The IRS requires most of the businesses to have an EIN so as to identify each employer’s tax account. In order to get an EIN for their business one need to follow certain steps such as –
Determine if you need an EIN
As per IRS, one need to determine an EIN so as to answer the following questions such as –
- Have you any employees in your organization?
- Do you file an employment, excise, alcohol and tobacco or firearm tax return?
- Have you any Keogh retirement plan?
- Are you involved in any one of the following type of organizations?
- Real estate mortgage investment conduits
- Non-profit organization
- Farmers co-operation
- Plan administrator
Choosing whether to apply online, via fax or by mail
Choosing any of the method based on how quickly you need the Tax ID number and where you are located –
- When you apply via online means, you will typically receive your EIN immediately. You can apply for an EIN via online means, if your principal business, office or agency or legal residence is in United States or US territories.
- If you choose Fax, then you will usually receive your EIN within four business days. You can apply for an EIN by fax if your company or business is not primarily located in US.
- When you choose mail in your application, you typically receive your EIN Number within four weeks. You can mail your EIN application no matter where your business is primarily located.
Complete your Form SS-4
No matter whichever method you choose, you need to fill the Form SS-4 i.e. Application Form for the Employer Identification Number. When you apply online, the IRS will ask you some questions, but your answer will supply the information required by the paper form. You need to complete the EIN application form in one session, as the system will log you out if you are inactive on the page for more than 15 minutes. So make sure that you have all the information nearby you before you start. The information you need to answer may include –
Your business legal and trade name
If you operate under a name other than your company’s legal name, then you will need to include both your legal and trade name. The IRS will only accept the letters, numbers, hyphens (-) and ampersands (&) in your legal and trade name. For example Jones/Smith Enterprises is listed as Jones-Smith Enterprises.
Executor, administrator, trustee or care of name
If you are applying for a trust’s EIN Number, then you need to include the trustee’s name. In case, if you are applying an EIN on behalf of an estate, then you need to use executor or administrator’s name. If your company has a designated person who receives the tax information, then you need to include their name. If none of these situations apply, then you can enter “N/A” on Line 3 of the form.
Your company’s mailing and street address
Full legal name and Social Security Number or Individual Taxpayer Identification Number
The responsible party is the individual who owns or controls the company. If your company is a corporation, then that might be the president, vice president or any other principal officer.
The date your business has started or changed the form of ownership
Closing month of the accounting year
Your accounting year is usually 12 consecutive months of the year and that can be either a calendar year (ending with December 31) or the fiscal year (ending on the last day of the month of your choice).
Whether you plan to file the Form 941 or 944
As an employer, you are required to file an employment tax return form. Typically, you will submit Form 941 once a quarter in a year. If you expect your payroll tax liability for the year to be $1,000 or less, then you can file the Form 944 once a year instead.
First date wages were paid
If you already have the employees, then you need to enter the first day you paid them.
Submit your application
After you have completed the Form SS-4, make sure that you are submitting it to the correct place –
If you are applying by Fax – If your business is primarily located in one of the 50 states or DC, then you need to Fax your application form. But if you are located in a US territory or outside the US, then you need to Fax your application form.
If you are applying by Mail – If your business is primarily located in one of the 50 states or DC, then you need to mail your application form to
- Internal Revenue Service
- Attn: EIN Operation
- Cincinnati, OH 45999
But if you are primarily located in a US territory or outside the US, then you need to mail your application form to
- Internal Revenue Service
- Attn: EIN International Operation
- Cincinnati, OH 45999
This is how one can get the EIN Number for your business.