When a baby is born, they get registered with the state, but we are issued a Social Security Number. The same thing happens with a business.
To legitimately start a business, three things need to happen first:
(1) After doing research, register your business name
(2) Decide on the legal business structure
(3) Get your business’s Employer Identification Number, also known as the EIN.
Getting an EIN is an essential thing to do after establishing a business in the United States. The Internal Revenue Service or the IRS assigns EIN to business organizations operating in the United States for identification and taxation purposes. There is no way to avoid this.
The EIN is imperative for your business because you will need an EIN to apply for a business license, open a business bank account, and file your tax returns. EINs can also be used for employment tax identification purposes, obtaining business loans, hiring employees, and is the business’s general tax number.
What is an EIN?
An Employer Identification Number (EIN) is a unique nine-digit number assigned by IRS that identifies your business for tax purposes. Business organizations in the United States are issued Employer Identification Numbers just as individual US citizens have unique social security numbers to identify themselves. EIN is also known as the Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). When the number is used for identification rather than employment tax reporting, it is referred to as a Taxpayer Identification Number (TIN). When used to report employment taxes, it is called an EIN. Like social security numbers, they are unique, never expire, and never reissued to another business.
How to Get your EIN?
It’s free to apply and get an Employer Identification Number. You need an EIN if it operates as a corporation or partnership, files tax returns for employment, withhold taxes on income, pays employees, or works with a specific type of people. There are several ways to get an EIN for your organization. You can get your Employer Identification Number via:
• IRS EIN Assistant
EIN by IRS EIN Assistant
The best and easiest way to get an EIN is online through International Revenue Service (IRS) EIN Assistant. To obtain EIN via IRS, you only need to complete an application form SS-4 and submit it. After the completion & validation of the application, you will get your EIN immediately. You can then download, save, and print your EIN confirmation notice. You must complete the IRS EIN online application form in one session within 15 minutes. After fifteen minutes, your session will expire, & you’ll need to start over.
EIN by Fax
You can also get your company’s EIN by faxing the completed SS-4 application form to an appropriate fax number. You should ensure that all the details in the application form are valid. If you include your fax number, you will receive your EIN by fax within four business days.
EIN by Email
Email your completed SS-4 application form to an appropriate email for obtaining an EIN. Ensure that the application form contains all the required information. The processing timeframe for an EIN application received by mail is four weeks. After validation of details, you’ll receive your EIN within four weeks.
EIN by Telephone
EIN is assigned via telephone to international applicants having businesses inside the United States. You’ll be asked questions concerning the SS-4 application form on a phone call. The person making the call must be authorized to receive the EIN and answer questions concerning the application form. You will receive your EIN immediately on the phone after answering all the questions.
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