If you’re looking to launch your business in Chicago, you’re likely in need of an Employer Identification Number (EIN). WikiHow provides a great step-by-step guide for understanding how to get an EIN. But having a thorough understanding of the process and the various ways you can go about obtaining an EIN can help you get from start to finish faster with a business that’s ready to CRush the competition.

What is an EIN?

An Employer Identification Number (EIN) is a nine-digit number that’s used to identify a business entity in the United States. It is related to filing taxes. It’s also known as a Federal Tax Identification Number (FTIN) or Taxpayer Identification Number (TIN), and it’s assigned by the Internal Revenue Service (IRS).

An EIN is similar to a Social Security Number (SSN) for an individual – it’s a unique identification number. It’s not a Social Security Number, however, and companies that request an EIN from a person will still need to insist on the individual’s SSN or IndividualTax Identification Number (ITIN) as well.

An EIN can be used for different purposes – it’s typically required for the purpose of paying taxes and filing information returns (e.g., 1099, W-2, etc.); for opening a bank account; when applying for licenses, permits, and other government documents. Generally, you need an EIN if you have an LLC, a corporation, you’re a sole proprietor, or you’re in a partnership.

How to Obtain an EIN

You can obtain an EIN online, by mail, or by fax. If you’re in Illinois, you can also call the IRS hotline. However, the quickest and easiest method is to apply online.

If you want to apply online, you can use the IRS website’s “EIN Assistant.” The EIN Assistant is an online application that helps you submit the necessary information. You’ll have to provide some basic information about your business, including the legal structure of the business (e.g., a sole proprietorship, a partnership, LLC, etc.), its activities, and contact information.

If you decide to mail your application, you’ll need to fill out Form SS-4, the Application for Employer Identification Number, and submit it to the IRS. However, this method can take up to four weeks for processing.

The fax method is another option, but you’ll need to print Form SS-4 and include a cover sheet.

Additionally, you can call the IRS hotline. You’ll be asked to provide a few details about your business, and the IRS will assign an EIN immediately.

Regardless of which method you choose, you’ll need your business’s legal name and information about the structure of the business. You’ll also need the name of a responsible party associated with the business and their Social Security Number.

Takeaways

When it comes to launching your business in Chicago, you need an EIN. Luckily, applying for an EIN is easy and you have a few options for doing it. You can apply for an EIN online using the IRS’s EIN Assistant, by mail, by fax, or by calling the IRS hotline. The online method is the quickest and easiest option.

No matter which option you choose, you’ll need some basic information about your business to complete the application, including the legal name of the business, the structure of the business, and the name and Social Security Number of a responsible party associated with the business.

Being able to access legal counsel is especially important during the process of acquiring an EIN. UpCounsel’s network of experienced attorneys can help make sure you stay compliant with the various rules and regulations, meaning you can get up and running quickly with a business that’s ready to take Chicago by storm.

Topics: EIN Number, SSN, IRS, FTIN, TIN, ITIN, LLC, Sole Proprietorship