Securing an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is an important step in the process of starting and running a business. An EIN is issued by the Internal Revenue Service (IRS) and is used when filing taxes, opening bank accounts, and communicating with government agencies. For entrepreneurs in Chicago, understanding the local implications of starting a business and acquiring the necessary permits is a crucial first step. This article will provide an overview on how to get an EIN number in Chicago.

First, businesses in Chicago may need to obtain a Business License or registration from the City Clerk's Office and the Department of Business Affairs and Consumer Protection (BACP) prior to registering for an EIN. The City of Chicago requires all businesses to obtain a Business License for any business operated within the city, with the exception of non-profit organizations. Businesses may also need to register with the State of Illinois through the Secretary of State prior to registering for an EIN. Additionally, before registering for an EIN, businesses may need to file articles of incorporation and/or qualification through the Secretary of State if they intend to operate as a corporation or limited liability company.

Once these initial steps are taken, businesses can begin the process of obtaining an EIN. In the case of corporations, limited liability companies, and non-profit organizations that have already registered with the State of Illinois Secretary of State, this should be a simple process. Businesses require an EIN to open a business bank account in order to accept and deposit customer checks. Businesses can apply for an EIN through the IRS website or by faxing or mailing a completed Form SS-4 Application to the IRS. If applications are received by fax or mail, businesses can expect up to four weeks for processing. Additionally, businesses are eligible to have the application fees waived if they expect to have at least $1,000 in payroll taxes withheld and/or deposited, or have a net income in excess of $600 or more.

When dealing with legal requirements for starting a business, obtaining an EIN in Chicago can be a complicated and time-consuming process. However, by understanding the appropriate licensing and filing requirements, and submitting the correct paperwork, entrepreneurs can easily secure an EIN in Chicago.

Topics:

EIN Requirement,

Obtain EIN,

Chicago