An Employer Identification Number, also known as a Federal Tax Identification Number, is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity explains Aron Govil. This number is used by the IRS to track business income and tax payments.
Most businesses need an EIN in order to file taxes, open a bank account, or hire employees. There are several ways to obtain an EIN:
1. Online – The easiest way to get an EIN is online through the IRS website. You will need to create an account and provide some basic information about your business.
2. By Mail – You can also apply for an EIN by mail. Download and fill out Form SS-4 and send it to the IRS.
3. By Fax – You can also apply for an EIN by fax. Download and fill out Form SS-4 and fax it to the IRS.
4. In Person – You can also apply for an EIN in person at a local IRS office. You will need to bring some basic information about your business, such as the company name, address, and type of business.
If you are a sole proprietor or single-owner LLC, you do not need an EIN unless you have employees or plan to hire employees. In this case, you will need to provide the Social Security Number (SSN) of each employee. If you a partnership or multi-owner LLC, you will need an EIN regardless of whether you have employees or not.
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to businesses and other entities. It serves as a unique identifier for tax purposes and is used to file business tax returns.
If you’re starting a business, you’ll need to get an EIN. Here’s how:
1. Go to the IRS website and click on “Apply for an EIN.”
2. Fill out the online application. You’ll need your business name, address, and Social Security number or employer identification number.
3. The IRS will assign your EIN and send you a confirmation letter.
You can also apply for an EIN by fax or mail:
1. Download Form SS-4 (Application for Employer Identification Number).
2. Fill out the form and write “Employer identification number” at the top of the page.
3. Include your name, address, city, state, zip code, country (if not U.S.), type of business entity, employer identification number if you have one already, and whether or not you’ve applied for one previously.
4. If you’re using Form SS-4 to apply for an EIN by fax or mail, also include your fax number and phone number in case the IRS needs to contact you about your application. You can’t file Form SS-4 by itself — it has to be included with your tax return or a separate request for an EIN.
5. Mail or fax your application to the IRS.
The bottom line: If you’re starting a business, you’ll need to get an Employer Identification Number (EIN). Aron Govil suggests you can apply for one online, by fax, or by mail. Just make sure to include Form SS-4 with your application.
Q: Do I need an EIN if I’m just self-employed?
A: No, you don’t need an EIN if you’re self-employed. An EIN is only necessary if you have employees.
Q: What happens if I forget to include Form SS-4 with my application?
A: If you forget to include Form SS-4 with your application, the IRS will send you a letter asking for it. If you don’t respond to this request within 60 days, they’ll cancel your EIN.
Q: Do I need an EIN if I’m not making any money yet?
A: Yes, even if your business is still very small and has little or no income, you’ll need to get an EIN in order to open a bank account. Many banks won’t allow you to open an account without one.
Q: Can I apply online if my business was previously registered but never had an EIN?
A: Yes, as long as there are no changes associated with your entity type (for example, if you were previously sole proprietorship but are now a partnership). You’ll just need to provide your former employer identification number on the application.
Q: How long does it take for the IRS to assign an EIN?
A: It usually takes about four weeks for the IRS to assign an EIN. However, it can sometimes take longer if there’s a lot of demand for EINs at the moment.
An Employer Identification Number (EIN) is a nine-digit number assign by the IRS to businesses and other entities. It serves as a unique identifier for tax purposes and is used to file business tax returns explains Aron Govil.
If you’re starting a business, you’ll need to get an EIN. You can apply for one online, by fax, or by mail. Just make sure to include Form SS-4 with your application.