Employer Identification Number or EIN is a federal tax identification number given by the Internal Revenue System or IRS for business entities serving in the United States. The Employer Identification Number is generally used by the employers, sole proprietors, partnerships, corporations, nonprofit organizations and individuals for their scheme of reporting employment taxes.
An Employment Identification Number (EIN) is most often written in a nine-digit long in a format of (00-0000000). The first to numbers are disjointed by a dash from the seven remaining numbers like i.e (12-3456789). The number is consist of information about which state your business is registered in. The IRS utilize this number to classify and determine the taxpayers that are required to input different tax returns.
The EIN has the similar to the role of social security number, however, it is usually written in a form (000-00-0000) or like (123-45-6789) in order to know the difference between the two. Employers Identification Number are for tax purposes only. They do not replace Social Security Numbers as well as Taxpayer Identification Number. States can authorize additional identification requirements.
EIN is preferable to use because it will identify your information, business accounts, tax returns, and documents, even if you have no employees.
EINs can be applied through fax, mail or via online. It is free of service by the Internal Revenue System. In applying for Fax, taxpayers can input data by downloading a PDF file of Form SS-4. Make sure to fill up the necessary and required information that is being asked. Provide a taxpayer fax number and it will be sent with a new employer identification number within four (4) business days. Through the use of mail, EIN application has a processing duration for four weeks. You are required to fill out the needed and required information in Form SS-4.
One of the best ways is through an Online application. It is a preferred method for the customers in applying for an employment identification number. All you have to do is to download a PDF file of Form SS-4, and print out a copy and fill up all the necessary questions. Once you are done, check online at IRS website and go to the EIN Assistant. Choose the legal arrangement of your business and you will see a page depicting the income tax structure for your business. Add information about your business; which includes the legal name, country and state, and the date of your startups. Incorporate the applicable activities in filing your taxes. When the application is completed, the data will be validated during the online sessions. You can also review the information before you submit the application. A confirmation letter will be sent online to your email. Employer Identification Number do not expire. Once it has been issued, it will not be reissued.
Take note that before you apply for an EIN, it is a precaution to check in case your business or organization is formed legally so when you apply it would be much easier and convenient.