Getting Started: How to Get an EIN Number

Getting an Employer Identification Number (EIN) is crucial for anyone hoping to start a business in the US.

An EIN is a unique identifier the Internal Revenue Service (IRS) issued to businesses for tax purposes. You need an EIN to do essential business activities such as filing taxes, opening bank accounts, and hiring employees.

In this blog, we’ll explain the step-by-step process for getting an EIN number and answer some of the most commonly asked questions about this tax identification number.

By the end of this blog, you’ll be able to get your EIN in no time.

What is an Employer Identification Number (EIN)?

An Employer Identification Number, or Federal Tax Identification Number, is a nine-digit code issued by the IRS to identify businesses for tax purposes. It works similarly to an individual’s Social Security Number (SSN) and is formatted as XX-XXXXXXX.

According to IRS regulations, partnerships, corporations, and multi-member LLCs must get an EIN. Other business entities, like Sole Proprietorships and single-member LLCs, may also be required to obtain one if they:

• Have employees.
• Files employment, excise, alcohol, tobacco, and firearm tax returns.
• Withholds taxes on non-wage income paid to non-resident aliens.
• Have a Keogh plan.
• Are involved with non-profit organizations, trusts, and estates.

Five Reasons Why You Need An EIN

Aside from filing taxes, you also need an EIN to do the following:

• Open A Business Bank Account: Most banks require businesses to provide their EIN when opening a new account.
• Apply For Business Loans & Lines of Credit: Similar to opening a bank account, you’ll need an EIN to apply for business loans, lines of credit, and credit cards.
• Hire Employees: Since EINs are primarily used for reporting federal and state payroll tax payments, you’ll need to obtain one before hiring employees.
• Use a Keogh Plan: A Keogh Plan is a tax-deferred pension plan for self-employed individuals and unincorporated businesses.
• Obtain Business Licenses & Permits: Several local governments require an EIN when applying for general business licenses and permits.

How to Get An EIN Number

The process for getting an EIN number is relatively straightforward. The IRS only requires you to submit a completed SS-4 Form, which you can find on their website.

Here are some of the information you’ll have to include in your Form SS-4:

• Your business’s legal name.
• Your business’s trade or Doing Business As (DBA) name, if applicable.
• The state and county where your principal place of business is located.
• The name and personal tax identification number of your business’s responsible party.
• If your business is structured as an LLC, you must provide its number of LLC members.
• If your business is structured as a corporation, you must provide the state and county where it was incorporated.
• Reason for applying for an EIN.
• The date your business was started or acquired.
• The number of employees you expect to hire.
• The date you’ll start paying wages.
• The type of business you’re in.

Once you complete the form, you can upload it on the IRS website or mail it to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

You can also fax your completed form to (855) 641-6935. It’s important to note that EINs are free. You don’t need to pay anything to obtain one. Be wary of any services that charge service fees for EINs.

How Long Does it Take to Get an EIN?

If you apply online, you’ll get your EIN and confirmation letter almost immediately. However, if you apply via mail or fax, you’ll have to wait about four days to a week for your EIN.

Frequently Asked Questions About EINs

To help you further, we’ve answered some of the most commonly asked questions about EINs below:

When can I start using my EIN?

You can use your EIN to open bank accounts and apply for business licenses as soon as you get them. But if you want to use it to file an electronic tax return or make an electronic payment, you must wait up to two weeks for your EIN to be uploaded to the IRS’s permanent records.

Can I apply for an EIN via telephone?

Yes, but this option is only available to international companies. To apply for an EIN by telephone, call (267) 941-1099 from Monday through Friday (except holidays).

What do I do if I lose my EIN?

If you lose your EIN, you can look for it in the confirmation letter you received from the IRS. You can also contact your bank to recover it or check your previous tax returns.

Do I need to get a new EIN if I change my business structure?

You must obtain a new EIN if you change your business structure. For instance, if you decide to incorporate your partnership, you must obtain a new EIN for your corporation.

Can you close an existing EIN?

Yes, you can close an existing EIN. This scenario is relatively common for businesses that have ceased operations or have been administratively dissolved. You must submit a written request to the IRS to close your EIN.

Can I use my SSN instead of an EIN?

Sole proprietors can use their SSNs to file taxes, but this approach has drawbacks. For instance, it makes separating personal and business finances difficult and exposes you to potential risks like identity theft. So, even though the IRS doesn’t require sole proprietors to get an EIN, they’re recommended to get one for tax purposes.

Get Your EIN Number Today

Getting an EIN is relatively easy. You can apply for one by yourself. But if you prefer working with an expert, look no further than Inc. Authority.

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We want to earn your trust first and your business second. Our business formation experts will help you through every step, from choosing a business name to getting your EIN free of charge.

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