Obtain a Federal Tax ID / EIN For Your Business Today
Benefits of Getting an EIN With LLC Formations
- Separate Your Finances
- Open Business Bank Account
- Hire New Employees
- Protect Personal Assets
- Build Business Credit
- File Taxes For Your Business
- Maximize Business Tax Deductions
- Hassle Free Application
- Amazing Customer Support
How to Obtain a Federal Employer Identification Number: Your IRS / EIN Number
When you start a business, one of the first steps you need to take is to obtain an Employer Identification Number (EIN). Otherwise, you may encounter questions concerning your business’ legitimacy, especially by government agencies.
Certain businesses are required to have an Employer Identification Number (EIN) to conduct business. Below you will find important information about how to obtain an EIN.
What is an Employer Identification Number (EIN)?
An Employer Identification Number (EIN) is a nine-digit code that is issued to you by the Internal Revenue Service (IRS). This information is used to identify your business. Being issued an EIN is similar to being issued a social security number for your business, except it helps establish your businesses’ identity as a legal U.S. entity.
Similar to an Individual Taxpayer Identification Number (TIN), Employer ID numbers are also used to keep track of all of your business contributions for tax purposes and other tax information; however, there are a few marked differences.
EINs vs Social Security Numbers
A Social Security Number (SSN) is often used to report employees’ year-end income by their employers. The information can then be used by employees to prepare their personal income tax returns. The information can also be used by single business owners for business identification and tax purposes.
EINs vs Individual Taxpayer Identification Numbers (ITIN)
A Taxpayer Identification Number (TIN) is issued to handle payments and tax information; however, they differ from EINs in that they are only issued to individuals who cannot receive an EIN or a social security number to complete a tax filing. You can apply for an ITIN by filing a separate form.
An Individual Taxpayer Identification Number also differs from an EIN in that it is only used for tax return purposes, so it can’t be used to establish credibility regardless of the issue or inconvenience this may cause. When you apply for an ITIN, it can be issued on either the state or federal level. However, an EIN is strictly to provide information federally on behalf of your organization or company.
Tax Identification Number (TIN)
The EIN is used to establish business identification of the entity on a federal level; however, there is also a tax identification number, which is used to identify businesses on the state level. If your business has employees, provides services, offers goods, or has any income, then you will most likely also need to apply for a Tax Identification Number where your business operates.
If you have any concerns about your tax status, contact LLC Formations for more information. We’re here to guide you through any issue you may have when you apply for an ITIN or EIN.
Why Do You Need to Apply for an EIN?
Though all business entities can benefit from an EIN, there are times when an EIN is required by the Internal Revenue Service, including if your business has employees. You also need an EIN when at least one of the following points of information applies to you:
- Your business is a single-owner business with employees
- Your business is a partnership
- Your business is a single-member LLC
- Your business is a multiple-member LLC
- Your business is an LLC taxed as a corporation
- Your entity deals with estates, trusts, employee plans, and the like
- Your businesses manage and report payroll taxes
- You change your business entity from a sole proprietorship to another type of business
Other Benefits of Having an EIN
These are just a few examples of when an EIN may be required for your business; however, there are also other reasons why an EIN may be useful, including:
- It offers safety for sole proprietors or individuals
- It can help companies establish credit
- It can help companies obtain all of the necessary business licenses and permits
In most cases, you will also need an EIN to help establish credit for your business. For instance, in order to open a bank account using your business name, the bank will require you to have an EIN along with all of the other necessary information. Lenders also require an EIN when applying for business loans.
Let a professional file your federal EIN number today
Let a professional file your federal EIN number today
EIN Eligibility Requirements
You can apply for an EIN in just a few steps and complete the process quickly; however, you first need to be sure your business fits the criteria for eligibility for an EIN and that you have all of the necessary information.
Determining Your Eligibility
To apply for EINs, your principal business must be located in the United States as this is only relevant to United States employers. The applicant must have a valid Social Security Number or a Tax Identification Number. You can check the government website for more detailed information about EIN eligibility for employers.
You Must File as the Responsible Party
When applying for an EIN, you are required to list someone as the responsible party. This helps prevent an unauthorized EIN request for individuals who do not have permission to request an EIN. Filing as the authorized person serves as proof that the applicant is eligible to make an EIN request.
Only individuals can be listed, such as family or a trusted partner. No business entities can represent individuals for an EIN request. Individuals can only apply for one EIN per day, regardless of the inconvenience this may cause.
If you have questions about eligibility, contact LLC Formations for more information.
How Do You Apply for an EIN?
To file an EIN application, the responsible party must complete a form SS-4 for their type of business entity. The form SS-4 is available for download through the IRS website. You can file form SS-4 either online or by mail, but remember that you can only apply once per day.
In many cases, the responsible applicant must also have a valid Social Security Number (SSN), Individual Taxpayer Identification Number (TIN), or EIN in order to request an EIN on behalf of another business or organization.
Contact LLC Formations for more information about how applicants can obtain an EIN from the IRS.
How Do You Submit the Application?
Once you have successfully completed the EIN request, the documents must then be filed with the appropriate IRS Service Center. After which, it will take the IRS anywhere from one day to up to 6 weeks to return your EIN depending on the filing. You do not need to pay an application fee for the form.
If you need help with your application, contact LLC Formations for more information.
How Can LLC Formations Help You?
Hiring a filing service to apply for an EIN on your behalf can save you a lot of time and energy which can then be invested back into your business. Instead of wasting time on paperwork and applications, hire a professional who can request an EIN on behalf of your business.
Contact the professionals at LLC Formations so we can help you get your EIN in no time.