Apply for an EIN: Everything You Need to Know
When you want to apply for an EIN, you'll first have to assess your needs. You could apply for an EIN online with the IRS.3 min read
How Do I Apply for an EIN?
When you want to apply for an EIN, you'll first have to assess your needs. You could apply for an EIN online with the IRS.
An Employer Identification Number (EIN) is an assigned number, which is utilized by the IRS for different business, trust, and non-profit entities. Most companies want an EIN, even when they do not have employees, and many banks require an EIN to obtain a business checking account. An EIN, though it's primarily needed for employment tax identification functions, may also serve as a common tax number. An EIN is also known as a federal tax ID and can be utilized for whatever it is that you are promoting, whether opening a checking account, making use of the process for enterprise licenses, opening a trust, or submitting a tax return by mail.
4 Ways to Apply for an EIN
Many individuals use the internet for assistance in filling out the necessary forms, using a system known as the EIN Assistant. It is a good idea to have all the answers to the questions within the forms generated beforehand, as you will have to fill out the required information within a single session. The system has a time limit, and you will be unable to save the process and return to it later. For security reasons, the session expires after 15 minutes of being inactive, and you will then have to start the process all over. Once the input is finalized and validated, you'll obtain your EIN instantly.
There are a few other ways to apply for an EIN:
- Phone. Contact the Enterprise & Specialty Tax Line at (800) 829-4933. Operation hours are 7:00 a.m. - 10:00 p.m. (native time), Monday through Friday. Personnel will take your information over the phone and will assign you an EIN upon completion of the conversation. Worldwide candidates should call (215) 516-6999 (Not toll-free).
- FAX. Simply fax the finished SS-4 form to your local state representative. You should obtain your EIN by fax within four business days.
- Mail. Mail your accomplished SS-4 form to the applicable IRS sector. You'll obtain your EIN by mail within four weeks.
Beware of fake EIN application websites. If you search using the words "apply for EIN," you'll discover numerous websites that appear to be the IRS, only to send you to a sub-site destination.
What is an LLC?
A Limited Liability Company (LLC) is a business entity that provides incredible tax benefits like that of a partnership with the personal protection and limited responsibility that are afforded to sole proprietors. Along with defending your loved one’s belongings and permitting you to announce your organization’s income in your private tax returns, LLC's additionally have the option of selecting from several taxation options.
What Does Responsible Party Mean?
A “Responsible Party” in an LLC is the one who has the responsibility of management over the finances or assets within the entity. It permits the person to regulate, handle, or manage the entity and the distribution of its funds and belongings. If the LLC has several business owners, or Members, a single member of the LLC must represent the entity and take responsibility for acquiring the Tax ID on behalf of the LLC. The Limited Liability Company (LLC) might have many owners or business partners, however, there may only be one responsible party in charge of getting the federal tax ID number for the LLC.
How to Acquire an EIN for Your LLC:
- Gather the necessary information. Be prepared for any possible questions that may be asked about your business beforehand. You may be asked to answer complicated questions, requiring somewhat complex information about the business and its associates.
- Choose a responsible party and be prepared to answer necessary questions regarding the person named.
- You can apply for an EIN online, by mail, or by fax. Obtain the necessary tax ID (EIN) Paperwork and forms. Be on the lookout for a standard mail envelope, containing your official Tax ID paperwork from the Internal Revenue Service.
If you need help with applying for an EIN, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.