For business owners based in New York, getting started with federal Employee Identification Numbers (EINs) involves an array of legal requirements that must be observed. Failure to understand the law or proceed improperly can result in significant negative consequences for a business. For those uncertain of the legal and administrative procedures or those who would prefer the expertise of a specialist in the area, UpCounsel can provide experienced attorneys to help businesses in New York navigate the legal complexities related to registering and gaining an EIN.

What is an EIN?

An EIN is a nine-digit number issued by the Internal Revenue Service (IRS) for filing and reporting of taxes. Commonly known as a federal tax identification number, this number is utilized by the IRS for tracking all types of taxes such as income, Social Security, and excise taxes. Businesses and business owners located in New York typically require a valid EIN for interstate business activities. It is important to note that although the application process is the same for nearly all American businesses, the regulations related to EIN vary among the US states.

Why an EIN Is Necessary

EINs are important for starting and maintaining a business in New York. In general, businesses in the state need an EIN to identify their organization (such as an LLC, corporation, or partnership) for tax filings, to open a business bank account, and for hiring employees. Sole proprietorships without employees can forgo obtaining an EIN, but it is still a recommended step as it will be needed down the road whenever that business grows. It is important to remember that businesses in New York do not need a separate EIN for different business activities like multiple LLCs; the same EIN can be used for each entity.

How to Obtain an EIN

There are various ways to apply for an EIN in New York. The most convenient method is to apply online using the IRS’s website. This method is secure and fast. Depending on the type of business, applicants may need the physical signature of the business owner, which requires mailing a form to the IRS office or faxing the signature page to a fax number provided by the IRS. New York-based businesses can also obtain an EIN through submitting a paper form.

Timelines for Filing

Applications submitted online are usually processed in a few minutes. For businesses using the mail or fax services to apply for an EIN, the IRS requires about four weeks to process the request. In order to maximize the chances of obtaining the EIN in a timely manner, it is recommended that businesses ensure that all the required documentation is accurate and complete.

Federal Tax Registration Requirements

In addition to obtaining an EIN, businesses in New York may also be required to register for federal taxes depending on the type of business. Such filings are typically required by the IRS for businesses that are engaged in the following activities:

Ice cream, soft drinks, and candy sales

USA international or foreign trade

Hazardous materials and petroleum sales

Liquor sales

Gold, coin, or precious metal sales

Tobacco sales

Inclusive Legal Support

With such an extensive set of legal requirements, it can be helpful to consult an experienced attorney to make sure that all of the necessary steps to obtain an EIN are followed properly. UpCounsel’s network of experienced lawyers is available to provide comprehensive support to businesses located in New York related to completing all of the requirements to obtain an EIN and to register for federal taxes. Business owners can choose an attorney based on reviews, experience, and cost.

Topics:

EIN,

Federal taxes,

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