An Employer Identification Number (i.e. EIN) is a unique identification number which is accredit to a business entity so that it can be easily identified by 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 of an EIN while working through a business document or application. As you come across a question asking for your EIN for your business and you cannot remember it. The three best places where one can find their EIN for the business entity 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 certified 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 for the business entity 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 for your business entity?
- Have you any Keogh retirement plan?
- Are you convoluted 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 even mail your EIN Application Form SS-4 to IRS 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 regarding your business entity, but your answer will supply the information required by the paper form. You need to complete the EIN application Form SS-4 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
Furthermore, if you operate your business under a name rather than your company’s legal name, there will be requirements of both legal name as well as trade name. There will be acceptance of only letters, numbers, hyphens and ampersands. These will be placed in your company’s legal name and trade name that you are running. For better understading, there is an example-Jones/Smith Enterprises will be listed as Jones-Smith Enterprises.
Executor, administrator, trustee or care of name
If you are applying for a trust’s EIN, then you need to include the trustee’s name in the application form. 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 of the business entity
The responsible party is the individual who owns or controls the company. In case of having a corporation company, there might be different authorities like president, vice president, and any other principal officer.
Date at which your business has started or changed the form of ownership
Closing month of the accounting year
The accounting year includes 12 months of the year. For your information, the accounting year can be a calender year that would be ending with 31 dec. Even though it can be a fiscal year ending on the last day of the month. This would be according to our preferred 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 need to 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.