The Internal Revenue Service (IRS) provides corporations, organizations, and some trusts with a unique identification number called an Employer Identification Number (EIN). But how to get an EIN number?
Hiring staff, handling business funds, and filing taxes require an EIN. Thankfully, the IRS provides a simple, cost-free online EIN application procedure. Therefore, L&Y Tax Advisor explains a detailed procedure on how to get an EIN number for free!
Where to Apply for an EIN?
The IRS offers a free tool to help you get an EIN in a few minutes. The IRS never asks for payment for an EIN. So, be cautious of third-party websites that charge for this service.
How to Apply Online for an EIN?
Finish the application in a single session.
You must complete the online application in one sitting because there is no option to ‘save your progress.’ The session ends after 15 minutes of inactivity, so you might have to restart the process.
Submit the application.
Give answers to all the inquiries on your company and the accountable party.
Get your EIN right away!
If your application is accepted, the IRS will provide your EIN immediately. Print the letter of confirmation for your records.
Read: What is a VAT number in the US?
Who is Eligible to Apply?
You need to fulfill the following conditions to utilize the online EIN application tool:
- The United States or a U.S. territory is where your primary place of business is located.
- Either you or an authorized representative are in charge.
- You possess a valid Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN).
Who is Unable to Apply Online?
- If your primary place of business is outside the United States, you must apply by phone, fax, or letter.
- Only government agencies are permitted to use an EIN while applying on behalf of another organization.
Read: What is an industry accountant?
What Details Are Needed?
Make sure you have the following before applying:
- The sort of business entity you have (corporation, partnership, LLC).
- The responsible party’s SSN or ITIN.
- A signed authorization form if you are a third-party designee.
When Should You Get an EIN?
Applying for an EIN after establishing your company entity with your state is advised. You need an EIN for:
- Employing workers
- Managing a corporation or partnership
- Making excise and sales tax payments
- Changing ownership or the structure of the company
- Managing retirement plans, estates, or trusts
What are the Other Ways to Apply for an EIN?
If, due to any reason, you are unable to apply online, you can reach out to the IRS by:
- Phone: The IRS Business & Specialty Tax Line.
- Fax: Send the IRS Form SS-4.
- Mail: Forward a filled-out Form SS-4 to the relevant IRS address.
You can quickly get an EIN and ensure you comply with IRS regulations by following these steps.
