When starting a business in the United States, one of the first steps taken is to obtain an Employer Identification Number (EIN) or Federal Tax Identification Number. An Employer Identification Number is, as the name implies, a number assigned to a business or organization by the Internal Revenue Service (IRS) for the purpose of identification. It is the U.S. equivalent of a Social Security Number or Taxpayer Identification Number (TIN). Obtaining an EIN is an essential part of establishing a business, and understanding the requirements and procedures behind doing so is critical to the success of any company.

Obtaining an EIN from the federal government is a straightforward and relatively quick process. However, businesses operating in Chicago may face additional complexities to the process due to local regulations. Special attention must be paid to local laws when going through the process. A thorough understanding of regional rules and regulations and their relevance to each business or organization depends on the advice and counsel of experienced business lawyers.

Understanding the Process from Start to Finish

The process for obtaining an EIN is relatively straightforward, although nuances associated with the Chicago region can add steps. However, obtaining an EIN in Illinois is not impossible. Generally, all business types must apply for an EIN. The Internal Revenue Service has provided several ways in which to do so depending on the jurisdiction and location of the company applying for one.

To apply for an EIN in the state of Illinois, the first step is to fill out a Form SS-4. This is the actual application that must be filled out and submitted to the IRS. The information provided within Form SS-4 is standard and takes only a few minutes to complete. When filing with the IRS, the organization must complete an SS-4 application and submit it to the agency. This is typically done through an online portal or paper form.

After submitting the SS-4 application, the applicants should receive an EIN confirmation within three business days. An EIN confirmation is necessary for confirming the success of the application. The EIN confirmation will confirm the name and address of the organization, the EIN assigned, and the date of application. This confirmation is used as proof that the organization has obtained an EIN successfully and is required for opening bank accounts and/or submitting tax forms.

What Chicago Businesses Should Know

In addition to the steps outlined above, business entities in the state of Illinois should be aware of certain regulations that are specific to their geographical area. One example is the requirement of a state franchise tax. Illinois requires that all businesses (both domestic and foreign) file a franchise tax return and pay a minimum franchise tax of $25.00 each year. Additionally, businesses must also be sure to comply with all of the state and local taxes, regulations, and filing requirements.

In order for businesses to remain compliant with these various regulations, it is important to consider consultation options. Companies in Chicago may consider consulting with specific legal firms or individual offices that practice in the city. There are a variety of firms and individual lawyers who specialize in particular types of business law, such as EIN registration. Merely understanding the process for filing applications and obtaining an EIN is not enough; businesses must be aware of regulations specific to their geographical area.

Relying on Experienced Legal Counsel

Obtaining legal counsel is an important part of the EIN registration process and can be essential for any business in any city. The right attorneys can help ensure that the process is completed quickly and efficiently, ensuring the business is compliant with all applicable laws.

For those located in Chicago, UpCounsel can be an attractive option. UpCounsel offers a variety of legal services and resources, ranging from one-time consultations to full-scale freelance legal departments. Businesses, both small and large, trust UpCounsel and its legal attorney community to provide high-quality, cost-effective services. Their online attorneys have a wealth of experience, and their profiles display client ratings and reviews of recent work, allowing businesses to make an educated decision when choosing the right attorney for them.

With the help of a qualified lawyer, businesses in Chicago can incorporate the nuances of local regulations while registering their EIN, allowing for a successful start in business.



Tax Identification Number,

Employer Identification Number