An Employer Identification Number (EIN) is a tax identification number issued by the Internal Revenue Service (IRS). This post will give you an overview of what you need to do in order to acquire an EIN and what the process involves.
Your dreams are about to come true as you begin to fill out the forms to launch a business, open a corporate bank account or apply for a business loan. It is at that moment you find yourself in a quandary as you stare at the form before you. It is asking for your company’s EIN and you don’t have one. Therefore, in order to finish your business, you need one. So, what is the mysterious EIN and what do you need in order to get one?
The EIN
According to the IRS, the EIN number is a unique nine-digit identification number that every business must have on file with the IRS. It is required by law and helps the IRS keep track of all business income, employment taxes, and certain financial records.
The EIN is a nine-digit number associated with the identification of a business, company, or corporation. It is also known as a federal tax ID number or employer identification number. It is issued by the IRS and used by the government to determine company taxes due. It is also required by banks, loan officers, vendors, and numerous other companies you may do business with.
The Rules
The rules are pretty simple. Your business must be located within the United States or one of its territories. Also, you are required to have a valid identification number with the IRS. This can be any one of the following:
- SSN (social security number)
- ITIN (individual taxpayer identification number)
- EIN (from another business)
The rules are simple:
- Start by registering for a business license online through the IRS website or partnered authority.
- Then, file a Form, Application for Employer Identification Number (EIN).
- Finally, attach all relevant documentation and wait for the EIN number to be issued to your account.
The Form
Next, you fill out the EIN form, the IRS processes the data and if your company, business, or corporation qualifies, the EIN is issued. It sounds daunting, and it can be just that. For that reason, you can apply for an EIN online with GovDocFiling. All you have to do is click here to begin the process.
The Number
Once you have filed the application, you will receive your EIN within a week. This will allow you to print off your EIN. This is how you can identify yourself to the IRS and other federal and state agencies. You can then file your income tax return online. The IRS accepts the EIN to verify your identity.
If you forget the number, call the IRS and ask for a reminder. If some date in the future you decide to close your business, contact the IRS and ask them to close your business account. The EIN is always yours, however. It will never be reassigned.
