how do you apply for an ein number

File for an ID number from the state and federal government for a A business must obtain an Employer Identification Number (EIN) if it. Apply for an EIN with the IRS assistance tool. It will guide you through questions and ask for your name, social security number, address, and your "doing. Also, if you are incorporating or filing as an LLC, this is also a good time to get it. Without a Federal Tax ID Number, you can't get a business bank.

: How do you apply for an ein number

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How do you apply for an ein number
How do you apply for an ein number

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Employer Identification Number

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer How do you apply for an ein number Number (TIN). When used for the purposes of reporting employment taxes, it is usually referred to as an EIN.[1] These numbers are used for tax administration and must not be used for any other purpose. For example, an EIN should not be used in tax lien auction or sales, lotteries, or for any other purposes not related to tax administration.[2]

Comparison to Social Security numbers[edit]

A social security number (SSN) is a nine-digit number assigned to US citizens and permanent residents. It is used by the US government to track your earnings, taxes, and employment, as well as eligibility for certain social benefits after retirement. SSNs are considered sensitive information and can be used to perpetrate identity theft, thus they are only shared in limited situations, for example, with employers, government entities, insurance agencies, and banks. SSNs can be validated as to origin and state/year of issuance.

The EIN serves a similar administrative purpose as a SSN, but for a business entity rather than an individual person. In some cases, such as a sole proprietorship, an SSN may be used as a business Amazon business account vs seller account ID without applying for a separate EIN, but in order to hire employees or establish business credit, an EIN is required. Unlike a SSN, an EIN is not considered sensitive information and is freely distributed by many businesses by way of publications and the internet.

EIN format[edit]

The EIN system was created by the IRS in 1974 by Treasury Decision (TD) 7306, 39 Fed. Reg. 9946. The authority for EINs is derived from 26 USC 6011(b), requiring taxpayer identification for the purpose of payment of employment taxes. The provision was first enacted as part of the revision of the Tax Code in 1954. This authority was broadened in 1961 by 26 USC 6109. An EIN is usually written in form 00-0000000 whereas a Social Security Number is usually written in the form 000-00-0000 in order to differentiate between the two. There are EIN Decoders on the web that can identify in what state the company registered the EIN.[3][4]

A business needs an EIN in order to pay employees and to file business tax returns, as well as to open corporate accounts with financial institutions such as banks, credit unions, and brokerage houses. To be considered a Partnership, LLC, Corporation, S Corporation, Non-profit, etc. a business must obtain an EIN. This applies to business with no income, which are not exempt from filing federal income tax returns.

Before 2001, the first two digits of an EIN (the EIN Prefix) indicated the business was located in a particular geographic area. In 2001, EIN assignment was centralized at three of the IRS campuses, although all 10 campuses can assign an EIN, if necessary.[5]

Campus Code
Andover, Massachusetts10, 12
Atlanta60, 67
Austin50, 53
Brookhaven (Holtsville), New York01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65
Cincinnati30, 32, 35, 36, 37, 38, 61
Fresno15, 24
Kansas City40, 44
Memphis94, 95
Ogden, Utah80, 90
Philadelphia33, 39, 41, 42, 43, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99
Internet 20, 26, 27, 45, 46, 47, 81
Small Business Administration (SBA) 31

Tax-exempt, charitable, non-profit organizations, and EINs[edit]

The issuance of an EIN to a non-profit organization does not automatically grant tax-exempt status from the IRS, which must be obtained separately. Each chapter of a national closets by design charlotte north carolina organization must have its own EIN, but the central organization may file for a group tax exemption. Tax Exemption status is publicly searchable on the IRS website, allowing anyone to verify an entity's registration, status, and assets and liabilities. Before donating monies to a charity, it is advisable to verify the charity's IRS Form 990 tax-exempt status via the IRS Tax Exempt Organization Search.[6]

Before applying for an EIN, it is always preferred to check whether the affected organization has been formed legally or not. Almost all organizations that apply for EINs can have their tax-exempt status automatically revoked if they have failed to file a necessary return or notice for a period of three years consecutively. Such a three-year period begins when the organization is legally formed; it is best to form the organization legally before applying for an EIN.[7]

EIN expiration/cancellation[edit]

EINs do not expire. Once an EIN has been issued to an entity, it will never be reissued, although a business may elect to cancel or change its current EIN for specific reasons.[8] Cases include purchasing or becoming a subsidiary of another business, or if there are changes to the ownership structure of the business, or if you are a sole proprietorship subject to bankruptcy proceedings. If you change your location or business name, you don't need to get a new EIN, but you will still have to report these changes to the IRS. You can report a change of business address with an IRS Form 8822 B.[9] If you are changing your business structure, you can file an IRS Form 8832.[10]

A new EIN assigned to your business will automatically replace your old EIN, and the old EIN will become inactive and not be reissued. Likewise, if you dissolve your business, the EIN will become inactive, closing your account with the IRS. There is no way to cancel or remove an EIN, as it is a permanent Federal taxpayer identification number once assigned.[11]

See also[edit]

References[edit]

External links[edit]

Источник: https://en.wikipedia.org/wiki/Employer_Identification_Number

Federal Employer Identification Number (FEIN): How to Get One

  • A federal tax identification number (FEIN) is required for businesses to secure a business license, file a tax return, and access a how do you apply for an ein number range of necessary services.
  • Sole proprietors and independent contractors who have no employees don't need a FEIN.
  • Under certain circumstances, a business might need to change its FEIN.
  • This article is for entrepreneurs and small business owners who need information about acquiring a federal tax identification number.

Before you can open a bank account, apply for a business license, or file a tax return, how do you apply for an ein number will be required to obtain a federal employer identification number (FEIN) for your business. Read on to learn what a FEIN is and how to get one. 

What is a federal tax identification number (FEIN)?

A federal tax identification number, also known as a FEIN or an employer identification number (EIN), is issued to entities how do you apply for an ein number do business in the United States. The FEIN is a unique nine-digit corporate ID number that works the same way a Social Security number does for individuals. The tax number for individuals, also referred to as a tax identification number or TIN, is an individual's Social Security number. It's easy to get the two types of numbers mixed up. Just remember that one is for business entities, and one is for individuals.

A FEIN is a way for the IRS and other government entities to identify and track business entities' tax and financial activities. It's required to file tax returns, as well as to set up retirement accounts and health accounts to offer medical and dental benefits to employees, among other uses.

Who needs a FEIN?

Not every small business entity needs a FEIN, but many do:

Businesses that typically do not need a FEIN include the following: 

  • Those that operate a sole proprietor
  • Those that do not have employees
  • Those that are not required to pay certain taxes as indicated above

If you start your business as a sole proprietor and use your Social Security number as opposed to a FEIN, you may discover later that you need one – mainly, if you plan to expand or restructure your business to a corporation and/or hire employees. In fact, if you form a corporation later, you will need a FEIN. A FEIN is a very important part of your business data when you're filing local, state and federal taxes.

In what other instances is a FEIN needed?

You also need a FEIN when your organization pays taxes of any kind and when you issue employee-related tax forms, such as W-2s. Employers are required to issue W-2s to their employees at the end of each tax year. All payroll reports contain your FEIN – including monthly, quarterly, and annual tax forms, all of which can be filed by a professional payroll processing company.

You will also have to issue a 1099 to every independent contractor you paid at least $600 to during the tax year, and your FEIN will also be needed on that form.

Not only will your business need a FEIN for various purposes, but your employees and outside contractors will also need it when they prepare their tax returns.

How can I get a FEIN?

1. Determine your eligibility for a FEIN.

The two indicators that you're eligible for a FEIN are if your main business is located within the U.S. or its territories, and if you have a valid Social Security number or another form of tax identification, such as another FEIN.

Having your main business in the U.S. or its territories means that the majority of your income as a business owner comes from a practice residing in this area. Therefore, even if you have another business outside the U.S., you may still be eligible for a FEIN. The person applying for a FEIN does not customer service green dot number to be the business owner, but they must have firsthand knowledge of and dealings with the company's finances. A secretary or administrative assistant can also apply for a FEIN; they can simply sign Form SS-4 and provide their information in the third-party designee section. 

2. Collect the necessary information for the IRS.

The IRS requires the information in Form SS-4: Application for How do you apply for an ein number Identification Number. First, you'll need to provide a physical address for your business (with a location in the U.S.) to receive a FEIN. 

On the application form, you'll need to state the legal structure of your business, such as LLC or corporation. If your business is an LLC, you must list the members of the organization. You need to further state the type of business you conduct.

This is some additional information you'll need when applying:

  • The reason you're applying for a FEIN. As an example, you may be launching a new business or have restructured your existing business.
  • The specific date you began or acquired your business.
  • The how do you apply for an ein number your business is in or that you retain business in, such as retail or consulting, as well as the product or service description.
  • When employee wages were first paid through your business.
  • The date of the end of your fiscal or accounting year. This is typically the month of December if you pay your taxes through the calendar year.
  • The highest estimate of employees you plan to hire in the coming year.

3. Apply for a FEIN online, by phone or through the mail.

If you are required to have a FEIN, there are several ways you can apply for one:

  • By phone: (800) 829-4933
  • By fax or mail: You can find Form SS-4 here and locate the fax number and mailing addresses for your location on the IRS website.
  • On the IRS website: You can file Form SS-4 online or participate in an interview-style live chat that will ask you questions and issue you a FEIN if you require one. This service is available Monday through Friday, 7 a.m. to 10 p.m. EST.

Regardless of the method you choose, it will take two weeks for your number to be active in the IRS system.

Even if your business is not required to have a FEIN, you may decide that it's worth applying for one anyway. There is no charge to do so, and you never know when you may decide that it's time to hire an employee or when your business circumstances might change. 

When do I need to change my FEIN?

Once you've received your FEIN, you do not have to change your FEIN unless under special circumstances as deemed by the IRS. 

If your business is a corporation, you'll be required to change your FEIN if:

  • Your business changes to a sole proprietorship or a partnership.
  • A new corporation is created through a merger.
  • Your business becomes subsidiary to another corporation.

If your business is a partnership, you'll be required to change your FEIN if:

  • The business changes to a sole proprietorship.
  • Your business becomes a corporation.
  • A new partnership is formed over an old one.

If you have a FEIN as a sole proprietor or an LLC, you'll be required to change your FEIN if:

  • You're in bankruptcy proceedings.
  • You change your business to a corporation or a partnership.
  • You gain ownership of another business.

You don't need to change your FEIN if the name or location of your business changes. 

FEIN FAQs

What is the difference between a FEIN and tax ID number?

A FEIN is usually given exclusively to those who apply for the federal employer identification number. The FEIN will help easily identify your business on payroll and other taxation forms. A FEIN can work as a tax identification number, and many states will not assign a separate number. A FEIN can be assigned to most business types, peoples bank ms routing number a few exceptions. As an example, you can use your Social Security number as your tax identification number if you're a sole proprietor. If you eventually incorporate your business, your tax ID number will need to change and how do you apply for an ein number a FEIN.

Is a FEIN public?

Although many entities use their FEINs to report their taxes and other financial information to the IRS and other government entities, it is public information. Corporations must share their FEINs with the other businesses they do business with. It is often needed for completing W-9 forms, providing credit references and sharing other forms of information. Sharing your FEIN sometimes creates unwanted exposure, which leads to some level of vulnerability. Just like Social Security numbers, FEINs should be used and shared discreetly to reduce the risk of identity theft and fraud.

What if I'm not sure I need a FEIN?

If you're not sure how do you apply for an ein number need a FEIN, you can consult the Internal Revenue Service's website. According to Melvin Springer, a New York-based financial executive, a good rule of thumb is that "if you record them on your personal tax return, you are not required to have one, as you can use your Social Security number. If you intend to report them on a business tax return, you will be required to have a FEIN." 

If this is confusing to you, you can hire a online payroll service to help with processing and reporting payroll-related taxes.

Источник: https://www.businessnewsdaily.com/17-federal-employer-identification-number-criteria.html

What is an EIN?
How To Apply For And Get A Free Employer Identification Number From The IRS

When does the IRS require an EIN number?

The Internal Revenue Service (IRS) has specific, established rules that determine when you need to apply for an EIN for your business.

If any of the following statements are true, you'll need to get an EIN:

  • Your business has employees
  • Your business is a partnership or corporation
  • Your business files excise taxes
  • Your bank of america business support number withholds taxes for nonwage income paid to a nonresident alien

All businesses can benefit from having an EIN. Visit our EIN Benefits guide to learn more.

Need help starting a business? Read our comprehensive how to start a business guide.

Sole Proprietorship

If your business structure is a sole proprietorship without employees (and doesn’t file any excise or franklin bank and trust franklin ky plan tax returns), then you are not required to get an Employer Identification Number (EIN).

Sole proprietors with employees are required to have an EIN.

A sole proprietor who is hiring employees should start thinking about when to form an LLC. Our sole proprietorship to LLC guide can help you decide when to take the next step in growing your business.

It's recommended that taxpayers get an EIN number in order to open a business bank account, build business credit, and lower the risk of identity theft.

Learn more about EINs for Sole Proprietorships.

Single-Member LLC

If your business entity is a single-member LLC without employees (or excise tax liability), then you are not required to get an Employer ID Number.

Single-member LLCs are required to have an EIN if they have employees.

It’s still recommended (and sometimes required) to open a bank account, to hire employees later, and in order to maintain your corporate veil.

Learn more about EINs for Single-Member LLCs.

Multi-Member LLC or Partnerships

If your business structure is a partnership or multi-member LLC, you are required to get an EIN number because the LLC must file a partnership returnand provide K-1s to members of the LLC.

Learn more about EINs for LLCs.

Corporations

If you have an S corporation tax structure, you are required to have an EIN for tax reporting purposes.

If you have a C corporation, your business is viewed as a separate entity and you are required printers on sale at walmart canada get an EIN for tax reporting purposes.

Nonprofit Organizations

If your business structure is a nonprofit, you are required to have an Employer ID Number for tax reporting purposes.

Trusts and Estates

EINs are used for specific types of trusts and estates under varying circumstances.

Request An EIN

You can visit the online IRS EIN Assistant website and follow their step-by-step application process as soon as your business is officially formed. The EIN Assistant provides questions and answers, but we've also simplified the steps below.

You must form your business before getting an EIN. The IRS will ask for your business formation date and legal how do you apply for an ein number name. You will need to register your business and get approval for the business's name from your state before getting an EIN. Visit our LLC before EIN guide to learn more.

For help with business formation, visit our free Form an LLC or Form a Corporation guides for step-by-step instructions.

If you are undecided on what business structure to choose, visit our How To Choose a Business Structure guide or our LLC vs Sole Proprietor guide.

Note:

IRS EIN Applicant Requirements: "All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the 'responsible party', controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity."

Источник: https://howtostartanllc.com/what-is-an-ein

Apply for FEIN

This task allows you to obtain a Federal Employer ID Number (FEIN, also sometimes known as an EIN) for your business and enter it into the One Stop system.

This number is issued by the IRS and is required if you will have employees. It is also mandatory for your UIA registration. If you do not have an FEIN, contact the IRS Business & Specialty Tax Line at (800) 829-4933 or click the following link to be redirected to the IRS web site, where you can complete a simple application and be assigned an FEIN immediately. You can then download, save, and print your EIN confirmation notice. IRS FEIN Application Page 

Once you have your FEIN, enter it in the text box and click Submit to store it in the One Stop database. This will help secure your business.

Each FEIN is allowed in the database only once. If you attempt to enter your Alabama one credit union bill pay and you receive an error message indicating that your FEIN is already registered, someone else from your company may already have entered it.

Источник: https://www.michigan.gov/statelicensesearch/0,4671,7-180-24786-279318--,00.html

Many types of businesses must obtain a special tax identification number from the IRS. If you have a business or are self-employed, you need to know:

  • What is a business tax ID number?
  • Why is obtaining a tax ID number important?
  • When are you required to obtain a business tax ID number?
  • Should you obtain a business tax ID number even if it's not required?
  • How do you obtain a business tax ID number?
  • What is a business tax identification number?

The official name for a business tax identification number is Employer Identification Number—EIN for short. An EIN is a nine-digit number the IRS assigns to businesses for tax filing and reporting purposes. It looks like this: 12-3456789.

You obtain an EIN from the IRS. You should list it on every payment, form, or other document your business files with the IRS. In most states, owen county state bank login also use it for your business's state tax payments and filings. In effect, an EIN is like a Social Security number for your business.

Why is an EIN important?

The IRS processes hundreds of millions of payments and tax filings each year. You want to make absolutely sure that it properly accounts for all the payments and filings your business makes. The EIN is the main tool the IRS uses to do this. Thus, you want to comply with the IRS rules. This means you use your tax ID number to identify your business whenever you deal with the IRS.

It's particularly important to obtain an EIN if you expect to hire employees. Without a business tax ID number you won't be able to withhold taxes from your employees' pay or send the money to the IRS. Nor file employment tax returns. Not having the tax ID number can result in severe IRS penalties.

Man and woman sitting at desk in garage, using laptop and phone

When is an EIN is required?

You need to obtain an EIN from the IRS whenever you form a business that is legally separate from yourself. This includes forming a corporation, partnership, or a limited liability company (LLC) with more than one owner. This is so whether or not your business hires any employees. If you start such a business, be sure to obtain a business tax ID number soon after you complete the formation process.

However, the rules differ if you're a sole proprietor. You americas best glasses commercial one if you're running a one-person business and haven't formed a separate business entity like a corporation or LLC. Most self-employed people are sole how do you apply for an ein number sole proprietor rules also apply to you if you have formed a single-member LLC (SMLLC).

If you're a sole proprietor or SMLLC owner, you can generally use your Social Security number to identify your business. In other words, you don't need to obtain a separate tax ID number. But there are some important exceptions to this rule.

If you're a sole proprietor, you must obtain EIN if you:

  • Hire employees
  • Buy or inherit an existing business that you operate as a sole proprietorship
  • Incorporate your sole proprietor business or form a partnership or multi-member LLC, or
  • File for bankruptcy‚ your bankruptcy estate must obtain an EIN for its tax filings

If you're the owner of an SMLLC, you must obtain an EIN if you:

  • Hire employees
  • Add one or more additional members to your SMLLC, or
  • Elect to have your SMLLC taxed as a corporation

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Should you obtain an EIN if it's not required?

Millions of sole proprietors and SMLLC owners use their Social Security numbers instead of an EIN and do just fine. However, if you're a sole proprietor or SMLLC owner, you have the option of obtaining an EIN. This is so even though it is not required by the IRS. Doing so avoids having to use your Social Security number to identify your business.

There are several good reasons to obtain an EIN and use it instead of your Social Security number:

  • Avoid identity theft. Theft of taxpayer's identities is a widespread problem. Identity thieves steal taxpayers' Social Security numbers. They then use them to file fraudulent tax returns and obtain tax refunds. For this reason, it's wise to keep your personal Social Security number as private as possible. If you perform services as a sole proprietor or SMLLC for which you're paid over $600 during the year, you must provide an EIN or Social Security number to your clients or customers. If you fail to do so, your clients must withhold 24 percent of your payments and send the money to the IRS. Getting an EIN allows you to avoid having to provide your Social Security number to clients and other members of the public.
  • Help establish independent contractor status. Using an EIN on your tax returns and payments also helps to show that you're an independent business-person. In other words, it shows that you are an independent contractor and not an employee. This can make you more attractive to prospective clients.
  • Banks may require a SMLLC to have an EIN. If you're a sole proprietor, you can establish a business bank account using your personal social security number. If you've formed an SMLLC, some banks may require an EIN to establish a bank account in your LLC's name. This is not a legal requirement, it is simply a policy that many banks follow - not how do you apply for an ein number do, however.

Obtaining an EIN

Obtaining an EIN is easy and absolutely free. The fastest and easiest way to obtain an EIN is to apply directly through the IRS website. Go to https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. You fill out an interview-style online application. To apply online, you must have a valid Social Security number or EIN for another business.

As long as you pass the system's automatic validity checks, you will immediately receive your EIN. Print out a copy of the confirmation notice for your records and begin using your new EIN immediately. However, it will take up to two weeks before your EIN becomes part of the IRS's permanent records. You must wait until this occurs before you can:

  • File an electronic tax return
  • Make an electronic payment, or
  • Pass an IRS Taxpayer Identification Number (TIN) matching program

If you don't want to apply online, you can obtain an EIN by completing and filing the IRS EIN application form. This is Form SS-4, Application for Employer Identification Number. This takes longer than applying online.

Most of the information you'll need to provide to get your EIN is straightforward, such as your business mailing address. Here are some questions in the online application that may give you trouble:

Trade name/doing business as

For sole proprietors, complete this space only if you're not using your personal name to identify your business to the public. If you've formed a business entity like an LLC or corporation, complete it if you're using a name other than your business legal name to identify your business. Such a name is also called a "DBA," short for doing business as.

What does your business or organization do?

Click the box that best describes the principal activity of your business. Most people will choose "other" and then describe their business in the next page.

Describe your employees

If you expect to hire employees over the next 12 months, you need to list the number you expect to hire. If you're a sole proprietor, you're not an employee of your business, so don't include yourself in this number.

What’s a Rich Text element?

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Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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Источник: https://mileiq.com/blog-en-us/ein-business-tax-identification-number
how do you apply for an ein number

How do you apply for an ein number -

Apply for EIN: How to Apply for a Free Employer Identification Number (EIN)

This article was reviewed and updated on August 17, 2020

How do you apply for an EIN?

The Internal Revenue Service (IRS) requires a completed Form SS-4 to receive an EIN. We can help you get your employer identification number, right here, right now. Just answer a few questions required by the IRS—the whole process takes a few minutes. Once you’ve completed the application, you can file the application online, in the mail, or fax it in yourself.

If you’re a small business owner, or are otherwise self-employed, chances are you’ve heard of an EIN or Employer Identification Number. You may not be clear, however, on exactly what an EIN is, whether you need one or how to go about getting a free EIN if you do.

That’s what we’re here for. Let’s walk through the basics, starting with what an EIN is.

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How to Get a Free EIN Number

It’s a pretty simple process. To start, you’ll want to visit the IRS website and not a third-party website that claims to help you apply for an employer identification number. You really won’t need help with this process and you definitely don’t want to pay someone to help you do it.

The online application process is the IRS’s preferred method. When you get to theIRS’s EIN application site, you’ll be prompted to fill in the necessary information, which will be verified as you go through the process. Once successfully completed, your employer identification number will be issued immediately.

While the online application is the IRS’s preferred application method (and is definitely the quickest), you don’t have to apply online. You can also apply via fax, mail, or, if you are an international applicant, over the phone. Details for each of these methods are available onthe IRS website. You’ll need Form SS-4 for each of these methods.

The IRS will then review your application and assign a new EIN to your business. If your entity has tax-exempt status, such as a nonprofit organization, you’ll still need an EIN, but just be sure to select ‘church or church-controlled organization’ or ‘other nonprofit organization’ as the type of entity on your application.

Regardless of which application method you choose, you’ll receive a Form SS-4 Notice verifying that your business has been assigned an EIN. Be sure to hang onto that notice so you can use it to verify your EIN whenever necessary. And here’s what to do if you everlose your SS-4 Form Notice.

What is an Employer Identification Number (EIN)?

An EIN is a lot like a Social Security number, but it’s for business entities like a limited liability company (including single member LLCs), a corporation, and even sole proprietorships in some situations. A sole proprietor will need an EIN number if they have employees (though you don’t necessarily have to have employees to need a federal EIN. More on that in a minute).

An EIN has the same nine digits as a Social Security number and is assigned by the IRS for the purpose of your business filing and reporting taxes.

Now, you may be asking “why can’t I just use my Social Security number, then?”

Do I Need an EIN?

If you’re self-employed and don’t have any employees, you may not have any need for an EIN. However, you probably already know the importance of keeping your personal and business finances separated, and an employer identification number is just another way to help you do that.

For example, some banks require an employer identification number to open a business checking account or apply for a business loan. Even if you’re a sole proprietor with no employees, if you want to separate your business banking account or apply for a business loan now or in the near future, getting an EIN squared away can be a good move.

Related:What is a DUNS Number?

In general, if you are operating as a corporation, partnership or LLC, you’ll need an EIN. It’s a good idea to talk to your accountant to determine what exactly is required of your business.

The Difference Between EIN and Tax ID

Although your EIN does function as your federal tax ID number, it goes beyond that and is used to identify your business in a number of other ways. Although an EIN is not required if you are a sole proprietor, if you have employees, among other things, that will require you to get an EIN number.

As a sole proprietor, you’ll need an EIN if you:

  • have employees
  • offer them a pension, retirement or profit-sharing plan,
  • inherit or purchase a business that you operate as a sole proprietorship
  • incorporate, form a partnership or an LLC
  • have clients for which you must submit a Form W-9, or
  • file for bankruptcy as a business

The IRS goes into even more detail on the IRS.gov website, noting that a business entity needs an EIN if it has:

  • started a new business
  • hired or will hire employees, including household employees
  • opened a bank account that requires an EIN for banking purposes
  • changed the legal character or ownership of your organization (for example, you incorporate a sole proprietorship or form a partnership)
  • purchased a going business
  • created a trust
  • created a pension plan as a plan administrator
  • are a foreign person and need an EIN to comply with IRS withholding regulations
  • are a withholding agent for taxes on non-wage income paid to an alien (such as an individual, a corporation, or a partnership)
  • are a state or local agency
  • are a federal government unit or agency
  • formed a corporation
  • formed a partnership
  • administer an estate formed as a result of a person’s death
  • represent an estate that operates a business after the owner’s death.

Who Qualifies for an EIN?

Anyone whose business is located in the United States or a U.S. territory and has an existing valid taxpayer ID, such as a Social Security number, Individual Taxpayer Identification Number or previous EIN, can apply for a new EIN.

How Long Does it Take to Get an Employer Identification Number?

Filling out the paperwork for your EIN can take less than five minutes. How long it takes to get the number back, however, will depend on how you submit your information. If you submit the information online, you can get your number back immediately. Filling out the SS-4 and mailing it in can take at least 4-5 weeks. 

Depending on the needs of your business, it could be in your best interest to file online. This could eliminate the wait between filing and submitting a loan application or anything else for which you need your EIN. 

How Long is an EIN Good For?

EINs are, in some senses, like a social security number. Just like your SSN, an EIN will never expire once it’s issued. 

How Do I Find My Employer Identification Number?

If you’ve already received your EIN and have misplaced it, there are a number of ways to retrieve it. 

  1. Look back at your records to see if you have the printed notice from when you applied. The IRS doesn’t mail these notices, so you will have printed it if you have it in hard copy. 
  2. Call the IRS Business & Specialty Tax Line at 800-829-4933. 
  3. Contact your bank if you opened a bank account under the business name. Banks are required to obtain your EIN before opening the account, so they likely have it on hand. 
  4. Your EIN is important for filing taxes. Your EIN number will make it easier to review  an old tax return for your business, this should have the EIN printed on it. 
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This article was originally written on December 17, 2019 and updated on August 17, 2020.

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Constance Brinkley-Badgett

Источник: https://www.nav.com/resource/get-an-employer-identification-number/

What is an EIN?
How To Apply For And Get A Free Employer Identification Number From The IRS

When does the IRS require an EIN number?

The Internal Revenue Service (IRS) has specific, established rules that determine when you need to apply for an EIN for your business.

If any of the following statements are true, you'll need to get an EIN:

  • Your business has employees
  • Your business is a partnership or corporation
  • Your business files excise taxes
  • Your business withholds taxes for nonwage income paid to a nonresident alien

All businesses can benefit from having an EIN. Visit our EIN Benefits guide to learn more.

Need help starting a business? Read our comprehensive how to start a business guide.

Sole Proprietorship

If your business structure is a sole proprietorship without employees (and doesn’t file any excise or pension plan tax returns), then you are not required to get an Employer Identification Number (EIN).

Sole proprietors with employees are required to have an EIN.

A sole proprietor who is hiring employees should start thinking about when to form an LLC. Our sole proprietorship to LLC guide can help you decide when to take the next step in growing your business.

It's recommended that taxpayers get an EIN number in order to open a business bank account, build business credit, and lower the risk of identity theft.

Learn more about EINs for Sole Proprietorships.

Single-Member LLC

If your business entity is a single-member LLC without employees (or excise tax liability), then you are not required to get an Employer ID Number.

Single-member LLCs are required to have an EIN if they have employees.

It’s still recommended (and sometimes required) to open a bank account, to hire employees later, and in order to maintain your corporate veil.

Learn more about EINs for Single-Member LLCs.

Multi-Member LLC or Partnerships

If your business structure is a partnership or multi-member LLC, you are required to get an EIN number because the LLC must file a partnership returnand provide K-1s to members of the LLC.

Learn more about EINs for LLCs.

Corporations

If you have an S corporation tax structure, you are required to have an EIN for tax reporting purposes.

If you have a C corporation, your business is viewed as a separate entity and you are required to get an EIN for tax reporting purposes.

Nonprofit Organizations

If your business structure is a nonprofit, you are required to have an Employer ID Number for tax reporting purposes.

Trusts and Estates

EINs are used for specific types of trusts and estates under varying circumstances.

Request An EIN

You can visit the online IRS EIN Assistant website and follow their step-by-step application process as soon as your business is officially formed. The EIN Assistant provides questions and answers, but we've also simplified the steps below.

You must form your business before getting an EIN. The IRS will ask for your business formation date and legal business name. You will need to register your business and get approval for the business's name from your state before getting an EIN. Visit our LLC before EIN guide to learn more.

For help with business formation, visit our free Form an LLC or Form a Corporation guides for step-by-step instructions.

If you are undecided on what business structure to choose, visit our How To Choose a Business Structure guide or our LLC vs Sole Proprietor guide.

Note:

IRS EIN Applicant Requirements: "All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the 'responsible party', controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity."

Источник: https://howtostartanllc.com/what-is-an-ein

Employer Identification Number

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN). When used for the purposes of reporting employment taxes, it is usually referred to as an EIN.[1] These numbers are used for tax administration and must not be used for any other purpose. For example, an EIN should not be used in tax lien auction or sales, lotteries, or for any other purposes not related to tax administration.[2]

Comparison to Social Security numbers[edit]

A social security number (SSN) is a nine-digit number assigned to US citizens and permanent residents. It is used by the US government to track your earnings, taxes, and employment, as well as eligibility for certain social benefits after retirement. SSNs are considered sensitive information and can be used to perpetrate identity theft, thus they are only shared in limited situations, for example, with employers, government entities, insurance agencies, and banks. SSNs can be validated as to origin and state/year of issuance.

The EIN serves a similar administrative purpose as a SSN, but for a business entity rather than an individual person. In some cases, such as a sole proprietorship, an SSN may be used as a business Tax ID without applying for a separate EIN, but in order to hire employees or establish business credit, an EIN is required. Unlike a SSN, an EIN is not considered sensitive information and is freely distributed by many businesses by way of publications and the internet.

EIN format[edit]

The EIN system was created by the IRS in 1974 by Treasury Decision (TD) 7306, 39 Fed. Reg. 9946. The authority for EINs is derived from 26 USC 6011(b), requiring taxpayer identification for the purpose of payment of employment taxes. The provision was first enacted as part of the revision of the Tax Code in 1954. This authority was broadened in 1961 by 26 USC 6109. An EIN is usually written in form 00-0000000 whereas a Social Security Number is usually written in the form 000-00-0000 in order to differentiate between the two. There are EIN Decoders on the web that can identify in what state the company registered the EIN.[3][4]

A business needs an EIN in order to pay employees and to file business tax returns, as well as to open corporate accounts with financial institutions such as banks, credit unions, and brokerage houses. To be considered a Partnership, LLC, Corporation, S Corporation, Non-profit, etc. a business must obtain an EIN. This applies to business with no income, which are not exempt from filing federal income tax returns.

Before 2001, the first two digits of an EIN (the EIN Prefix) indicated the business was located in a particular geographic area. In 2001, EIN assignment was centralized at three of the IRS campuses, although all 10 campuses can assign an EIN, if necessary.[5]

Campus Code
Andover, Massachusetts10, 12
Atlanta60, 67
Austin50, 53
Brookhaven (Holtsville), New York01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65
Cincinnati30, 32, 35, 36, 37, 38, 61
Fresno15, 24
Kansas City40, 44
Memphis94, 95
Ogden, Utah80, 90
Philadelphia33, 39, 41, 42, 43, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99
Internet 20, 26, 27, 45, 46, 47, 81
Small Business Administration (SBA) 31

Tax-exempt, charitable, non-profit organizations, and EINs[edit]

The issuance of an EIN to a non-profit organization does not automatically grant tax-exempt status from the IRS, which must be obtained separately. Each chapter of a national non-profit organization must have its own EIN, but the central organization may file for a group tax exemption. Tax Exemption status is publicly searchable on the IRS website, allowing anyone to verify an entity's registration, status, and assets and liabilities. Before donating monies to a charity, it is advisable to verify the charity's IRS Form 990 tax-exempt status via the IRS Tax Exempt Organization Search.[6]

Before applying for an EIN, it is always preferred to check whether the affected organization has been formed legally or not. Almost all organizations that apply for EINs can have their tax-exempt status automatically revoked if they have failed to file a necessary return or notice for a period of three years consecutively. Such a three-year period begins when the organization is legally formed; it is best to form the organization legally before applying for an EIN.[7]

EIN expiration/cancellation[edit]

EINs do not expire. Once an EIN has been issued to an entity, it will never be reissued, although a business may elect to cancel or change its current EIN for specific reasons.[8] Cases include purchasing or becoming a subsidiary of another business, or if there are changes to the ownership structure of the business, or if you are a sole proprietorship subject to bankruptcy proceedings. If you change your location or business name, you don't need to get a new EIN, but you will still have to report these changes to the IRS. You can report a change of business address with an IRS Form 8822 B.[9] If you are changing your business structure, you can file an IRS Form 8832.[10]

A new EIN assigned to your business will automatically replace your old EIN, and the old EIN will become inactive and not be reissued. Likewise, if you dissolve your business, the EIN will become inactive, closing your account with the IRS. There is no way to cancel or remove an EIN, as it is a permanent Federal taxpayer identification number once assigned.[11]

See also[edit]

References[edit]

External links[edit]

Источник: https://en.wikipedia.org/wiki/Employer_Identification_Number

EIN Comprehensive Guide

35 Min. Read

Employer Identification Numbers Explained: Learn what it is, if you need one, how to get one from the IRS & more to help you properly setup your EIN.

Content:

Image describing the 4 ways to apply for an Employer Identification Number (EIN) with processing times: Apply Online and receive your EIN immediately, Apply by Mail and receive your EIN in 4 weeks, Apply by Fax and receive your EIN in 4 business days, Apply by Telephone and EIN is issued immediately.

What is an Employer Identification Number (EIN)?

An Employer Identification Number (EIN) is a unique nine-digit number assigned to businesses by the Internal Revenue Service (IRS). IRS Publication 15 (Circular E), Employer Tax Guide states that the IRS uses EINs for the purpose of business identification and for the reporting of taxes. It is not intended for use in any other activities. An Employer Identification Number is commonly referred to as a Federal Employer Identification Number (FEIN), or a Federal Tax Identification Number. Example Employer Identification Number Confirmation Letter from the IRS.gov. Shows assignment of a 9 digit EIN to an LLC.

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Do I Need an EIN?

If you are planning to do business in the United States or any US territories, you will most likely need an Employer Identification Number (EIN). IRS Instructions for form SS-4 explains that an EIN may be required for both businesses whose origins are in the US and foreign owned companies looking to do business in the US.

https://www.youtube.com/embed/X_oYdOcnXho

The IRS.gov Business and Self Employed resource states that businesses must apply for an EIN if any of the following are true: 

  • I have employees.
  • I operate my business as a partnership or as a corporation.
  • I file one or more of these tax returns: Excise, Employment, or Alcohol, Tobacco and Firearms?
  • I withhold taxes on income, other than wages, paid to a non-resident alien.
  • I have a Keogh plan.
  • I am involved in an estate. 
  • I am involved with a trust, (except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns)
  • I am involved with Real estate mortgage investment conduits.
  • I am involved with Plan administrators
  • I am involved with Farmers' cooperatives
  • I am involved with Non-profit organizations 

How Much Does an EIN Cost?

Obtaining an EIN is free. The IRS provides free services to businesses needing to obtain an EIN. You can apply for an EIN in various ways with the IRS—by phone, fax, mail, or online. They are all free.  The IRS has previously issued warnings of online companies charging people for an EIN, when in fact they can obtain one at no cost, "Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service." Note: When forming a business entity, some business owners opt to pay a fee for the company providing their incorporation services to apply for and obtain their EIN. Note that this fee goes to the business service company, not the IRS. The business owner is paying for a service, not the EIN. There is no charge to obtain an Employer Identification Number from the IRS. 

How to Apply for an Employer Identification Number

IRS Publication 1635 (Rev. 2-2014) states that you can apply for an Employer Identification Number online, by fax, by mail, or via telephone (only for international applicants).

Form Needed to Apply for an EIN: IRS Form SS-4

The IRS uses form SS-4, Application for Employer Identification Number:

Form SS-4: https://www.irs.gov/pub/irs-pdf/fss4.pdf

Form SS-4 Instructions: https://www.irs.gov/pub/irs-pdf/iss4.pdf

See Form SS-4PR (for Puerto Rico) and SS-4PR Instructions for the Spanish-language versions:

Form SS-4PR: htps://www.irs.gov/pub/irs-pdf/fss4pr.pdf

Form SS-4PR Instructions: https://www.irs.gov/pub/irs-pdf/iss4pr.pdfIRS Instructions for form SS-4 (Rev. December 2017)-4 explains:  If applying online, you do not need to fill out the IRS form and send it in. However, when using the online EIN Assistant to apply, you will be prompted to answer the same questions found on form SS-4. To prepare yourself, gather the information requested on form SS-4 prior to starting your online application. If applying for an EIN by mail or fax, you will need to fill out for SS-4 and send it in. If applying for an EIN by telephone (international applicants only), you will need answer questions found on form SS-4 however, you may or may not have to actually send in a physical copy of the form. The IRS representative that assists you on the telephone will not either not require you send in the form or they can ask you to mail or fax in for SS-4 within 24 hours of your telephone call.

https://www.youtube.com/embed/lLIwTYpJuyY

Apply For an EIN Online

The IRS.gov business and self employed resource states that the online EIN application is the best method for customers who wish to apply for and obtain an EIN. The IRS.gov website explains that all information is validated during the online session and an EIN is issued immediately upon completion of the application. The online application is open to any entities whose principal business, office, agency, or legal residence is situated within the United States or U.S. Territories.

https://www.youtube.com/embed/STxhXvCFMl4

Before Starting the Online Application

Confirm You are Eligible to Apply Online 

The Employer ID Numbers section of the IRS.gov Business resource shares that: 

  • You may apply for an Employer Identification Number online (https://sa.www4.irs.gov/modiein/individual/index.jsp) if your principal business is located in a US territory or the United States.
  • The individual who applies online must have a valid Taxpayer Identification Number (ITIN, SSN, or EIN). Foreign filers who do not possess an Individual Taxpayer Identification Number (ITIN) are not permitted to use this assistant to acquire an EIN. International applicants can apply by telephone.
  • Applicants are limited to one Employer Identification Number per responsible party, per day. A “responsible party” is the individual who owns or controls the business entity or the individual who exercises ultimate effective control over the entity. The responsible party must be an individual (not an entity), unless they are a government entity.
  • You cannot apply for an EIN online if you were incorporated outside the United States or U.S. territories. Call 267-941-1099 for any questions. 
  • Your online application will not be processed if the responsible party is an entity with an EIN already obtained online. In this case, another application method will be required. 
Become Familiar with the Online Application Process

The IRS EIN Assistant introduction page explains that:

  • The online application must be completed in one session. Applicants are unable to save their application and come back to complete it at a later date.
  • After 15 minutes of inactivity, your session will expire and you will have to start the application process over. This is for security purposes. 
  • Upon completion of the online application, you will receive your EIN. At this time, the EIN Confirmation Letter can be downloaded, stored, and printed. If preferred, you can request that the EIN Confirmation Letter is sent to you via mail.

Step-By-Step Online Application Process (With Screenshots)

APPLY NOW WITH THE EIN ASSISTANT 

A screenshot of the first page of the EIN assistant. On the first page, click on the button "Begin Application" to start the process of applying for an EIN online.

1. IDENTITY: Answer questions regarding the identity of your legal structure and why you are applying for an EIN.

Screenshot of step 1, page 1 of the online EIN application. Choose the correct legal structure for your business.
Screenshot of step 1, page 2 of the online EIN application. Confirm what business selection you made or go back and make edits.
Screenshot of step 1, page 3 of the online EIN application. Provide additional information about your entity.
Screenshot of step 1, page 4 of the online EIN application. Confirm the additional information provided about your entity.
Screenshot of step 1, page 5 of the online EIN application. Select the reason you are applying for an EIN.

2. AUTHENTICATE: Provide information about the "Responsible Party" for your business.

Screenshot of step 2, page 6 of the online EIN application. Provide personal information about the responsible party.

3. ADDRESSES: Provide location and contact information for your business.

Screenshot of step 3, page 7 of the online EIN application. Provide the location and phone number for your business.

4. DETAILS: Provide additional details about your business including information from the articles of organization and data about the activities of the business.

Screenshot of step 4, page 8 of the online EIN application. Provide information about your entity found on your articles of organization.
Screenshot of step 4, page 9 of the online EIN application. Provide more information about your entity.
Screenshot of step 4, page 10 of the online EIN application. Identify your entity's primary activity.
Screenshot of step 4 page 10 of the online EIN application continued. Identify your entity's primary activity.

5. EIN Confirmation: Let the IRS know how you would like to receive your EIN Confirmation Letter. 

Screenshot of step 5, page 11 of the online EIN application. Tell the IRS how you would like to receive your EIN confirmation letter - immediately online or within 4 weeks in the mail.

6. If you select "Receive letter online" you will be able to download your EIN Confirmation Letter in PDF form, immediately. If you select "Receive letter by mail" you will receive your EIN Confirmation Letter by mail within approximately 4 weeks.

Step 5, page 12 of the online EIN application. If you selected to receive your EIN immediately, download your EIN Confirmation Letter. Image shows sample EIN confirmation letter.

Apply for an EIN by Fax

Steps to apply for an Employer Identification Number by fax. 1. Fill out form SS-4. 2. Fax the form to the iRS. 3. Receive your EIN by fax within 4 business days.

Once taxpayers correctly complete Form SS-4 (PDF), they should send the application to the relevant fax number. IRS Instructions for form SS-4 (Rev. December 2017)-4 explains that it will take up to four business days for a fax containing an EIN to be sent back. If no return fax number is indicated, an EIN will mailed to the entities address within 4 weeks. To find the correct fax number, refer to Where to File Your Taxes or see below: If your principal business, agency or office, or legal residence (in the case of an individual), is located in one of the 50 states or the District of Columbia, fax your completed form SS-4 to: Internal Revenue Service Attn:  EIN Operation Fax: (855) 641-6935 If you have no legal residence, principal place of business, or principal office or agency in any state, fax your completed form SS-4 to:  Internal Revenue Service Attn:  EIN International Operation Fax: (855) 215-1627 (within the U.S.) Fax: (304) 707-9471 (outside the U.S.)  

Apply for an EIN by Mail

Steps to apply for an Employer Identification Number by mail. 1. Fill out form SS-4. 2. Mail the form to the iRS. 3. Receive your EIN by mail within 4 weeks.

IRS Instructions for form SS-4 states that it takes approximately four weeks to process an EIN application sent by mail. Make sure that the Form SS-4 (PDF) contains all required information. If the IRS determines that the entity needs a new EIN, it will assign one using the appropriate procedures for the entity type. They IRS will then mail the new EIN to the taxpayer.  For the correct mailing address, refer to the Where to File Your Taxes (for Form SS-4) page or see below: Mail your completed form to the correct processing center. If your principal business, agency or office, or legal residence (in the case of an individual) is located in one of the 50 states or the District of Columbia, mail your completed form SS-4 to:  Internal Revenue Service Attn:  EIN Operation Cincinnati, OH 45999 If you have no legal residence, principal place of business, or principal office or agency in any state, mail your completed form SS-4 to:  Internal Revenue Service Attn:  EIN International Operation Cincinnati, OH  45999  

Apply for an EIN by Telephone – International Applicants Only

Steps to apply for an Employer Identification Number by Telephone. 1. Fill out form SS-4. 2. Call the IRS at 261-941-1099. 3. Receive your EIN immediately. If requested mail your form SS-4 to the IRS within 24 hours.

Instructions for IRS form SS-4 (Rev. December 2017)-4 advises that if an international applicant wishes to obtain an EIN, they can call 267-941-1099. Representatives are available from 6 a.m. to 11 p.m EST from Monday through Friday. The caller must be authorized to receive the EIN. They will also be asked questions about Form SS-4 (PDF), Application for Employer Identification Number. The IRS representative who assists you may also ask you to mail or fax in a copy of your completed SS-4 form within 24 hours of the phone call.   IRS Instructions for form SS-4 warns that if an applicant wants to authorize the named individual to receive the entity’s EIN, they must fill out the Third Party Designee section. In addition to this, answer any questions concerning the completion of Form SS-4. The designee’s authority ends when the EIN is assigned and released to the designee. A signature must be completed for the authorization to be considered valid.

https://www.youtube.com/embed/ceevhMlCWAQ

Important Information to Note When Applying for an EIN

Responsible Party

IRS Instructions for form SS-4 (Rev. December 2017)-4 states that all EIN applications must state both the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. The IRS calls this individual or entity the “responsible party.” The responsible party is responsible for the control, management, and direction of the applicant entity. The responsible party is also responsible for the disposition of all funds and assets. Outside of the applicant being a government entity, the responsible party must be an individual (i.e., a natural person). It cannot be an entity. Recently, some changes have been made to the language of EIN process. These changes have been made for purposes of identifying the correct individuals and entities applying for EINs. To learn whether these changes affect you, refer to Responsible Parties and Nominees before applying for an EIN.

Third Party Authorization

The Third Party Designee section needs to be completed at the bottom of Form SS-4 (see IRS Instructions for form SS-4 (Rev. December 2017)-4 for exact instructions). For the third party designee authorization to be considered valid, the taxpayer needs to sign the form, as well. Once the form is completed and signed, the taxpayer should mail or fax the form to the relevant service center. The third party designee's authority covers only newly assigned EINs. The authority terminates upon the assignment and release of the EIN.

Tax Exemption Status

Make sure that your organization is legally formed before applying for an EIN. When applying, the IRS presumes that the organization is legally formed. Nearly all organizations that are exempt under IRC 501(a) are subject to automatic withdrawal of their tax-exemption status if the required annual information returns or notice is not filed for three consecutive years. If this applies to you, take note that when you submit your application, the clock begins ticking down on this three-year period.

Daily Limitation of Employer Identification Numbers

The IRS has now limited the issuance of Employer Identification Numbers to one per “responsible party” per day. This limitation applies regardless of what application method (online, fax, telephone or mail) is chosen by the applicant. This, according to the IRS, is to ensure the fair and equal treatment of all taxpayers.

In Home-Care Service Recipient?

If you are a home-care service recipient who has a previously assigned EIN either as a sole proprietor or as a household employer, there is no need to apply for a new EIN. You can use the EIN previously given to you.

  • If you don't have your EIN by the time a tax return is due, write "Applied for" and the date you applied for one in the space left on the form for the number. It is advised that you do not use your Social Security Number.·        
  • If you don't have your EIN by the time a deposit is due, you should send your payment to the service center address for your state. Make your check or money order payable to the Internal Revenue Service and display your name (as shown on the SS-4), along with your address, type of tax, period covered by payment, and the date you applied for an EIN.·        
  • Businesses that have changed their ownership structure usually need to apply for a new EIN. For example, sole proprietors who plan to incorporate their business may need to apply for a new EIN.        
  • The IRS cannot process an application online if the “responsible party” is an entity with an EIN previously obtained online. It is advised that any of the other methods can be used to apply (fax, mail, telephone).
Accounting that makes you look good.

How Long Will it Take to Get My EIN? 

The length of time it takes to get an Employer Identification Number depends on the type of application process you choose (online, mail, fax, or telephone). Each takes a different amount of time to be processed. 

Apply Online Processing Time

When you apply online, your EIN is issued immediately.

Apply By Fax Processing Time

When you apply by fax, your EIN is issued within approximately 4 business days.

Apply By Mail Processing Time

When you apply by mail, your EIN is issued within approximately 4 weeks.

Apply By Telephone Processing Time

When you apply by telephone, your EIN is issued immediately. The option to apply via telephone is now only available to international applicants. Be advised that the IRS agent who handles your case may require you to fax or mail in form SS-4 within 24 hours of your phone call. 

What Do I Do if I Need to Make a Deposit but Haven’t Received My EIN?

Make sure to apply for an EIN in time to have your number at hand for when you need to file a return or make a deposit. An EIN can be obtained immediately by applying online. International applicants need to call (267) 941-1099. Another option is to fax a completed Form SS-4 to your state’s service center for your state. They should respond within roughly one week. Make sure to include a return fax number. Without it, the process could take up to roughly two weeks. If you choose to apply by mail, give yourself four to five weeks in advance of the date at which you expect to need your EIN to make a deposit or file a return. If you do not have your EIN available when a return is due, write "Applied for" and the date you applied for your EIN in the space where you would otherwise write your EIN number. Make sure not to use your social security number.  If you do not have your EIN when a deposit is due, send your payment to your state’s service center address. Checks or money orders should be payable to the Internal Revenue Service. They should have the same name, address, kind of tax, period covered, and date your EIN application. If you need more information, refer to Publication 1635, Understanding Your EIN (PDF).

Is an EIN the Same as a Social Security Number?

An EIN is the business equivalent of a Social Security Number (SSN) but they are not the same. An EIN identifies a business entity doing business in the US, whereas a SSN identifies an individual resident in the country. Do not use your EIN in place of your Social Security Number or individual taxpayer identification number (ITIN).  

https://www.youtube.com/embed/scfpryUkzgo

The unique nine-digit EIN allows the IRS to identify taxpayers that must file various business tax returns. The number is essential as a business needs an EIN in order to pay employee payroll taxes, pay income tax, and file their business income tax returns.

Does My Business Need a NEW EIN?

Businesses will generally need to apply for a new EIN if the structure of the business or business ownership has changed. The act of changing the name of your business does not necessarily stipulate that you must also apply for a new EIN. Business owners can visit IRS.gov’s Business Name Change page to see what requirements you must follow.  Find your entity structure below to see if your recent changes require you to apply for a new EIN:

Sole Proprietors

If any one of the following statements are true, you must obtain a new EIN: 

  • You incorporate your business
  • You inherit or buy an already established business that you operate as a sole proprietorship
  • You establish partners and begin to operate as a partnership.
  • You’re subject to a bankruptcy proceeding

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • You operate more than one business
  • You formally change the name of your business
  • You relocate your business or add other business locations

Corporations

If any one of the following statements are true, you must obtain a new EIN: 

  • The Secretary of State gives you a new charter
  • You change to a sole proprietorship or a partnership
  • After a statutory merger, a new corporation is established
  • You become a corporation’s subsidiary
  • You are a subsidiary of a corporation that is using the parent’s Employer Identification Number

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • You are a division of the existing corporation 
  • The corporation declares bankruptcy
  • The corporate location changes
  • The corporate name changes
  • The corporation elects to be taxed as an S-corporation
  • After a corporation merger, the surviving corporation uses the existing Employer Identification Number
  • Only the corporate identity or place is changed after reorganization of a corporation
  • State level conversion with an unchanged business structure

Partnerships

If any one of the following statements are true, you must obtain a new EIN: 

  • If you incorporate
  • One of the partners takes over the partnership and operates the business as a Sole proprietorship
  • An old partnership is ended and a new one begins

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • The partnership files for bankruptcy
  • The name of the partnership changes
  • The partnership location changes
  • Additional locations are added
  • As a result of termination of a partnership (under IRC section 708(b)(1)(B)) a new partnership is created
  • Within a 12 month timeframe, 50% or more of the partnership ownership changes hands (measured by interests in profits and capital)

Limited Liability Company (LLC)

State statutes are responsible for LLCs. When the LLC was created by the states, the IRS did not create a new tax classification corresponding to it. In lieu of any new classification, the IRS uses its longstanding classifications for business taxpayers--corporation, partnership, or "disregarded entity" to indicate an entity separate from its owner. The IRS will always employ one of these tax classifications for an LLC. If an individual is the proprietor of a “disregarded entity,” that individual is regarded as the sole proprietor of the LLC. Conversely, the “disregarded entity” would be considered as a division or branch of its owner were it owned by another entity. 

Changes Affecting Single Member LLCs with Employees

Effective as of January 1, 2009, single member/single owner LLCs that have made the decision not to be treated as corporations might be required to shift the way they report and pay wage payments, federal employment taxes, and specific federal excise taxes. Changes to Treasury Regulation Section 301.7701-2 were issued on Aug. 16, 2007. Per these new regulations, an LLC, and not its sole proprietor, will be considered responsible for the filing and payment of all employment taxes on wages paid on or after January 1, 2009. Additionally, for some excise taxes the LLC itself, rather than its sole proprietor, will be accountable for any actions first required or permitted and liabilities imposed during periods starting on or after January 1, 2008.  A New EIN will be required for wages paid on or after January 1, 2009 for the following scenario: if a single member LLC has been filing and paying employment taxes under the name and EIN of the owner, providing that the LLC was not previously assigned an EIN. For help in determining whether a new EIN is necessary, refer to the following examples:

  • A new EIN will be necessary if the primary name on the account is John Doe.
  • A new EIN will be necessary if the primary name on the account is John Doe and the second name line is Doe Electric (the latter organized as an LLC under state law).
  • A new EIN will NOT be necessary if the primary name on the account is Doe Electric LLC.

You must obtain a new EIN if any one of the following are true: 

  • A Multi-member LC--a new LLC with more than one owner--is formed under state law.
  • A Single Member LLC--a new LLC with one owner--is formed under state law and opts to be taxed as either a corporation or an S corporation.
  • A Single Member LLC--a new LLC with one owner--is formed under state law, and has an employment tax filing requirement for wages effective January 1, 2009, or an excise tax filing requirement for tax periods effective January 1, 2008.

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • The LLC has no excise tax liability and no employees and you report income tax as a branch or division of a corporation or other entity. 
  • A preexisting partnership shifts to an LLC classified as a partnership.
  • Either the name or the location of the LLC changes.
  • An LLC that currently has an EIN opts to be taxed either as a corporation or an S corporation.
  • A Single member LLC--a new LLC with one owner--is formed under state law, has neither employees nor excise tax liability, and opts not to be taxed as either a corporation or an S corporation. NOTE:You are allowed to request an EIN for banking or state tax purposes. However, there is no requirement for an EIN for the purpose of federal taxes.

Estates

If any one of the following statements are true, you must obtain a new EIN: 

  • Funds from the estate create a trust (not a simple continuation of the estate)
  • You represent an estate that operates the business after the owner’s death

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • A personal representative, executor, or the administrator changes their name or address 

Trusts

If any one of the following statements are true, you must obtain a new EIN: 

  • A trust changes into an estate
  • An intervivos trust or a living trust changes into a testamentary trust.
  • A living trust is terminated by distributing its property to a residual trust
  • Many trusts have one person as the maker/grantor

If any one of the following statements are true, you DO NOT need to obtain a new EIN: 

  • The beneficiary or grantor changes their address or name
  • The trustee is changed

What if I Lost My Number? 

If you lost your Employer Identification Number (EIN) for your business, make use of these actions in order to replace your lost EIN:

  • When you applied for your EIN, the IRS gave you a computer-generated confirmation of your application and receipt of your EIN. Locate this notice.
  • You might have used your EIN to apply for state or local licenses or open a bank account. Contact the bank or agency. They might be able to help you retrieve your EIN.
  • Locate any tax return you might have filed for your existing entity. A previously filed return should contain your EIN.
  • Call the IRS’s Business & Specialty Tax Line at 800-829-4933 from 7:00 a.m. to 7 p.m on Monday through Friday. Once you provide identifying information and prove you are authorized to receive the EIN, an assister will provide you with the number. A sole proprietor, a partner in a partnership, a corporate officer, a trustee of a trust, or an executor of an estate are all considered persons authorized to receive an EIN over the Business & Specialty Tax Line.

How Do I Cancel My Employer Identification Number?

Once an EIN is issued to a business entity it is permanent and cannot be cancelled. It is never reused or reassigned to any other business entity. It will always be available for use at a subsequent date. The IRS can close your business account if you receive an EIN but decide at a later date that you do not need the number. In order to close your account, send the IRS a letter that includes the complete legal name of the entity, its EIN, and its business address. Make sure to include the reason you want to close your account. If you have a copy of the EIN Assignment Notice, make sure to include that. You can write to the IRS at: Internal Revenue Service Cincinnati, Ohio 45999 You must file the appropriate tax returns before the IRS can close your account. File these returns if you made a Federal Tax Deposit or any other Federal tax payment, if you are liable for any Business Taxes, or if the IRS has informed you that a business tax return is due. Refer to Closing a Business Checklist for any other necessary actions.

Information for Exempt Organizations

If you applied for an EIN for an exempt organization, you can request a closing of your account. You can make this request if you never applied for a formal exemption, if the organization is not covered in a group ruling, or if you never filed an information return. Address these requests to: Internal Revenue Service Attn: EO Entity Mail Stop 6273 Ogden, UT 84201 You can also fax the request to (855) 214-7520. In your request, make sure to state the reasons why you want to close your account. Include a copy of the EIN Assignment Notice if available. If the EIN Assignment Notice is unavailable, make sure to include the complete legal name of the entity, the EIN, and the mailing address. If you are an exempt organization that does not meet the criteria just outlined, refer to Termination of an Exempt Organization. For further information on closing the account of an exempt organization, call (877) 829-5500.

Valid EIN Prefixes and How they are Assigned

EIN Prefixes Explained

Before 2001, the geographical location of a business was designated by the first two numbers (known as “prefixes”) of an EIN. As of 2001, the EIN prefix no longer designates location. The first two numbers now designate which campus assigned the EIN (though the process is largely centralized). Each campus uses specific prefixes. The online application and the Small Business Administration use their own prefixes. The prefix breakdown is as follows (campus or other location will be listed, followed parenthetically by the valid EIN prefix): Andover (10, 12). Atlanta (60, 67). Austin (50, 53). Brookhaven (01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 55, 56, 57, 58, 59, 65). Cincinnati (30, 32, 35, 36,  37, 38, 61). Fresno (15, 24). Kansas City (40, 44). Memphis (94, 95). Ogden (80, 90). Philadelphia (33, 39, 41, 42, 43, 46, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 85, 86, 87, 88, 91, 92, 93, 98, 99). Internet (20, 26, 27, 45, 46, 47, 81, 82, 83, 84). Small Business Administration/SBA (31).

Daily Limitation of an Employer Identification Number

As of May 21, 2012, the Internal Revenue Service will restrict EIN issuance to one per responsible party per day. This pertains to all requests, regardless of format (online, mail, or fax). EINs whether online or by fax or mail. 

Responsible Party Vs. Nominee

Responsible Parties

Whether mailed, faxed, or submitted electronically, all EIN applications must list the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. The IRS calls this individual or entity the "responsible party." They control, manage, or otherwise direct the applicant entity and the disposition of assets and funds. The responsible party must be an individual. An exception exists in the case of the applicant being a government entity. In some cases there is more than one responsible party. In these cases, the entity can choose to list the party it wants the IRS to recognize as the responsible party.  The Instructions for the current revision of the application defines the “responsible party” in the following terms:

“For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, "responsible party" is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, (c) the owner of an entity that is disregarded as separate from its owner (disregarded entities owned by a corporation enter the corporation's name and EIN), or (d) a grantor, owner, or trustor if a trust.

For all other entities, "responsible party" is  the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.”

Nominees

Someone who is given limited authority to act on behalf of an entity is called a “nominee.” Such authority is generally given for a restricted period of time, usually during the formation of the entity in question. The IRS defines the "principal officer, general partner," etc., as the "responsible party" for the entity. The "responsible party" is the individual or entity that controls, manages, or directs the entity. The “responsible party” is also responsible for the disposition of the entity's funds and assets. Unlike the “responsible party,” a “nominee” possesses little or no authorization to dispose of the entity's assets.  Recently, it has come to the attention of the IRS that nominee individuals are being listed as principal officers, general partners, grantors, owners, and trustors in the EIN application process. Crucially, none of these people constitute a nominee. Instead, nominees are individuals authorized for a limited period to act on behalf of entities during their formation. The use of nominees in the EIN application process has negative consequences. It prevents the IRS from gathering appropriate information on entity ownership. It also aids tax non-compliance perpetrated by entities and their owners. Nominees are not authorized to obtain EINs. All EIN applications, whether mailed, faxed, or completed electronically, must list the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor.  In order to correctly submit a Form SS-4, the responsible party should include  the name, Taxpayer Identification Number, and signature in both the form and the authorization. Third party designees filing online applications need to keep a complete, signed copy of the paper Form SS-4. They also need to keep a signed authorization statement. They should do so for each entity application filed with the IRS. Nominees cannot authorize third party designees to file Forms SS-4, nor should they be listed on the Form SS-4. In the case of a nominee being used in the state formation process when the true responsible party has not yet been identified, the entity is required to identify that individual before applying for an EIN. The IRS uses enforcement actions order to prevent improper use of EIN applications.

Correcting Business Information Where a Nominee Was Incorrectly Used

You must correct the information if a nominee was used to obtain an EIN. If no correction is made, a risk exists of information being disclosed to unauthorized parties. The IRS is currently experimenting with different methods of identifying responsible parties of entities. By updating the information itself, an entity can prove that it is in compliance with Federal tax laws. In order to update the information, complete Form 8822-B, Change of Address or Responsible Party – Business. Send to the completed form to the relevant address as shown below. If your old business address was in Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia or Wisconsin, send form 8822-B to: Internal Revenue Service 333 W. Pershing Road Mail Stop 6055 S-2 Kansas City, MO 64108 If your old business address was in Alabama, Alaska, Arkansas, Arizona, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, or any place outside of the United States, send form 8822-B to: Internal Revenue Service M/S 6273 Ogden, UT 84201-0023 Once the IRS receives updated information they will issue a notice of receipt. If more than 60 days have passed without delivery of the notice, an entity should mail a copy of the original Form 8822-B, annotated "Second Request," to the relevant campus listed above.

Frequently Asked Questions About EINs

What is an EIN?

An EIN stands for Employment Identification Number. An EIN is a number assigned by the Internal Revenue Service to identify a business for tax purposes. It is the equivalent of a Social Security Number for businesses.

Is an EIN the Same as a Tax ID Number?

Yes, an EIN and taxpayer identification number (TIN) are the same. In certain cases a social security number (SSN) is used as a TIN, as in the case of a sole proprietor with no employees.

Why do I need an EIN?

An EIN is like a Social Security Number for a business. It identifies your business on business permits, business licenses, and tax returns. It also identifies your business on any applications or forms requiring an IRS identifier. An EIN also allows you to separate personal and business expenses when you open a business bank account with it.

Does my business need an EIN? 

Your business will need an EIN if you have employees, file certain kinds of taxes, or if you are taxed as a corporation or a partnership. If you are a sole proprietorship, you might not need one. In this case, your SSN would serve as your EIN.

How do I apply for an EIN?

You can apply online, by mail, by telephone, or, in many states, in person.

4 ways to apply for an EIN: Online, by mail, by fax, or—if you are an international applicant—by telephone

You will need to complete the Application for Employer Identification Number (Form SS-4). You can directly complete Form SS-4 online or by phone. In order to apply by mail, you will need to have printed out and completed Form SS-4.

When do I need a new EIN? 

Many basic changes to your business will not require you to obtain a new EIN. However, you might need to obtain a new EIN if you change your legal business structure. Contact the IRS directly to find out if your change requires a new EIN.

If I apply online, how long will it take before I can use my Internet EIN?

You can use your Internet EIN immediately to open a bank account, apply for a business license, or file a tax return by mail. You will have to wait up to two weeks before your EIN becomes part of the IRS’s permanent records. You need to wait for this in order to file an electronic return or make an electronic payment.

Are any entity types excluded from applying for an EIN online?

No. All entity types can apply for an EIN online.

What if I forget my EIN number?

Call (800) 829-4933 and select EIN from the list of options. You can then receive assistance to retrieve your EIN. 

Does the IRS accept symbols as part of a business name?

No. Letters and numbers are accepted, as well as hyphens (-) and the ampersand symbol (&). 

Glossary

Corporation: A type of business structure that is a separate legal entity from its owners.

EIN: An EIN stands for Employment Identification Number. An EIN is a number assigned by the Internal Revenue Service to identify a business for tax purposes. It is the equivalent of a Social Security Number for businesses.

EIN Assistant: An online program that will guide you through the process of obtaining an EIN.

EIN Prefixes: Two numbers that the IRS assigns to a business in order to designate the IRS campus that assigned the EIN.

Entity: An organization created by one or more persons to carry on a trade or business.

Estate: The total net worth of an individual. This includes real estate, land, cash, possessions, financial securities, cash, and any additional assets that the individual owns or has a controlling interest in.

Form 8822-B: A form that allows you to correct business information where a nominee was incorrectly used when obtaining an EIN.

Limited Liability Company (LLC): A corporate structure where owners are not personally liable for the company's debts or liabilities. 

Nominee: Individuals authorized for a limited period to act on behalf of entities during their formation.

Partnerships: A business owned by several individuals.

Responsible Party:The individual who owns or controls a business entity or the individual who exercises ultimate effective control over an entity. The responsible party must be an individual (not an entity), unless they are a government entity.

Sole Proprietors: Someone who owns an unincorporated business by herself or himself. 

SS-4: A form that the IRS requires to be completed in order to obtain an EIN. SS-4 stands for Application for Employment Identification Number. 

Taxpayer Identification Number: These are assigned numbers that the IRS uses to identify individuals and businesses (ITIN, SSN, EIN). Both SSN and EIN are taxpayer identification numbers, but an EIN is used for a business. Do not use your SSN in place of your EIN.

Third Party Designee: A third party granted authorization to resolve federal tax issues. A third party can be designated on the SS-4 by filling out the Third Party Designee section. 

Trust: A legal entity through which a second party, the trustee, holds the right to manage a trustor's property or assets. 


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Источник: https://www.freshbooks.com/hub/startup/employer-identification-numbers-ein

IRS Online EIN Application Website Closed for Annual Maintenance

IRS has announced, on its employer identification number (EIN) online application website, that its online EIN application service will be closed until approximately 7 a.m. Eastern Time on Monday, Jan. 4, 2021.

Background. All taxpayers are required to have taxpayer identification numbers. (Reg §301.6109-1(a)(1)(i))

Any person other than an individual (i.e., corporations, partnerships, nonprofit associations, trusts, estates, and similar nonindividual persons) required to furnish a taxpayer identification number must use an EIN. (Reg §301.6109-1(a)(1)(ii)(C)) In addition, an individual, whether U.S. or foreign, who is an employer or who is engaged in trade or business as a sole proprietor must use an EIN as required by returns, statements, or other documents and their related instructions. (Reg §301.6109-1(a)(1)(ii)(D))

IRS has an online application for employer identification numbers. (https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online)

IRS website is down. IRS has announced, on its EIN online application website, that its online EIN application service will be closed from Dec. 23 at approximately 5 pm Eastern Time until approximately 7 a.m. Eastern Time on Monday, Jan. 4, 2021.

Observation. IRS generally brings down the website every year, from around the end of December through the beginning of January.

Reference: For employer identification numbers, see FTC 2d/FIN ¶ S-1501.

Источник: https://tax.thomsonreuters.com/news/irs-ein-application-website-is-down-until-2021/

Federal Employer Identification Number (FEIN): How to Get One

  • A federal tax identification number (FEIN) is required for businesses to secure a business license, file a tax return, and access a wide range of necessary services.
  • Sole proprietors and independent contractors who have no employees don't need a FEIN.
  • Under certain circumstances, a business might need to change its FEIN.
  • This article is for entrepreneurs and small business owners who need information about acquiring a federal tax identification number.

Before you can open a bank account, apply for a business license, or file a tax return, you will be required to obtain a federal employer identification number (FEIN) for your business. Read on to learn what a FEIN is and how to get one. 

What is a federal tax identification number (FEIN)?

A federal tax identification number, also known as a FEIN or an employer identification number (EIN), is issued to entities that do business in the United States. The FEIN is a unique nine-digit corporate ID number that works the same way a Social Security number does for individuals. The tax number for individuals, also referred to as a tax identification number or TIN, is an individual's Social Security number. It's easy to get the two types of numbers mixed up. Just remember that one is for business entities, and one is for individuals.

A FEIN is a way for the IRS and other government entities to identify and track business entities' tax and financial activities. It's required to file tax returns, as well as to set up retirement accounts and health accounts to offer medical and dental benefits to employees, among other uses.

Who needs a FEIN?

Not every small business entity needs a FEIN, but many do:

Businesses that typically do not need a FEIN include the following: 

  • Those that operate a sole proprietor
  • Those that do not have employees
  • Those that are not required to pay certain taxes as indicated above

If you start your business as a sole proprietor and use your Social Security number as opposed to a FEIN, you may discover later that you need one – mainly, if you plan to expand or restructure your business to a corporation and/or hire employees. In fact, if you form a corporation later, you will need a FEIN. A FEIN is a very important part of your business data when you're filing local, state and federal taxes.

In what other instances is a FEIN needed?

You also need a FEIN when your organization pays taxes of any kind and when you issue employee-related tax forms, such as W-2s. Employers are required to issue W-2s to their employees at the end of each tax year. All payroll reports contain your FEIN – including monthly, quarterly, and annual tax forms, all of which can be filed by a professional payroll processing company.

You will also have to issue a 1099 to every independent contractor you paid at least $600 to during the tax year, and your FEIN will also be needed on that form.

Not only will your business need a FEIN for various purposes, but your employees and outside contractors will also need it when they prepare their tax returns.

How can I get a FEIN?

1. Determine your eligibility for a FEIN.

The two indicators that you're eligible for a FEIN are if your main business is located within the U.S. or its territories, and if you have a valid Social Security number or another form of tax identification, such as another FEIN.

Having your main business in the U.S. or its territories means that the majority of your income as a business owner comes from a practice residing in this area. Therefore, even if you have another business outside the U.S., you may still be eligible for a FEIN. The person applying for a FEIN does not need to be the business owner, but they must have firsthand knowledge of and dealings with the company's finances. A secretary or administrative assistant can also apply for a FEIN; they can simply sign Form SS-4 and provide their information in the third-party designee section. 

2. Collect the necessary information for the IRS.

The IRS requires the information in Form SS-4: Application for Employer Identification Number. First, you'll need to provide a physical address for your business (with a location in the U.S.) to receive a FEIN. 

On the application form, you'll need to state the legal structure of your business, such as LLC or corporation. If your business is an LLC, you must list the members of the organization. You need to further state the type of business you conduct.

This is some additional information you'll need when applying:

  • The reason you're applying for a FEIN. As an example, you may be launching a new business or have restructured your existing business.
  • The specific date you began or acquired your business.
  • The industry your business is in or that you retain business in, such as retail or consulting, as well as the product or service description.
  • When employee wages were first paid through your business.
  • The date of the end of your fiscal or accounting year. This is typically the month of December if you pay your taxes through the calendar year.
  • The highest estimate of employees you plan to hire in the coming year.

3. Apply for a FEIN online, by phone or through the mail.

If you are required to have a FEIN, there are several ways you can apply for one:

  • By phone: (800) 829-4933
  • By fax or mail: You can find Form SS-4 here and locate the fax number and mailing addresses for your location on the IRS website.
  • On the IRS website: You can file Form SS-4 online or participate in an interview-style live chat that will ask you questions and issue you a FEIN if you require one. This service is available Monday through Friday, 7 a.m. to 10 p.m. EST.

Regardless of the method you choose, it will take two weeks for your number to be active in the IRS system.

Even if your business is not required to have a FEIN, you may decide that it's worth applying for one anyway. There is no charge to do so, and you never know when you may decide that it's time to hire an employee or when your business circumstances might change. 

When do I need to change my FEIN?

Once you've received your FEIN, you do not have to change your FEIN unless under special circumstances as deemed by the IRS. 

If your business is a corporation, you'll be required to change your FEIN if:

  • Your business changes to a sole proprietorship or a partnership.
  • A new corporation is created through a merger.
  • Your business becomes subsidiary to another corporation.

If your business is a partnership, you'll be required to change your FEIN if:

  • The business changes to a sole proprietorship.
  • Your business becomes a corporation.
  • A new partnership is formed over an old one.

If you have a FEIN as a sole proprietor or an LLC, you'll be required to change your FEIN if:

  • You're in bankruptcy proceedings.
  • You change your business to a corporation or a partnership.
  • You gain ownership of another business.

You don't need to change your FEIN if the name or location of your business changes. 

FEIN FAQs

What is the difference between a FEIN and tax ID number?

A FEIN is usually given exclusively to those who apply for the federal employer identification number. The FEIN will help easily identify your business on payroll and other taxation forms. A FEIN can work as a tax identification number, and many states will not assign a separate number. A FEIN can be assigned to most business types, with a few exceptions. As an example, you can use your Social Security number as your tax identification number if you're a sole proprietor. If you eventually incorporate your business, your tax ID number will need to change and become a FEIN.

Is a FEIN public?

Although many entities use their FEINs to report their taxes and other financial information to the IRS and other government entities, it is public information. Corporations must share their FEINs with the other businesses they do business with. It is often needed for completing W-9 forms, providing credit references and sharing other forms of information. Sharing your FEIN sometimes creates unwanted exposure, which leads to some level of vulnerability. Just like Social Security numbers, FEINs should be used and shared discreetly to reduce the risk of identity theft and fraud.

What if I'm not sure I need a FEIN?

If you're not sure you need a FEIN, you can consult the Internal Revenue Service's website. According to Melvin Springer, a New York-based financial executive, a good rule of thumb is that "if you record them on your personal tax return, you are not required to have one, as you can use your Social Security number. If you intend to report them on a business tax return, you will be required to have a FEIN." 

If this is confusing to you, you can hire a online payroll service to help with processing and reporting payroll-related taxes.

Источник: https://www.businessnewsdaily.com/17-federal-employer-identification-number-criteria.html
Businesses need an Employer Identification Number (EIN) for many common purposes. EINs are issued by the Internal Revenue Service.

You will need an EIN if your business:
  • has employees, and/or
  • operates as a corporation or partnership, and/or
  • files employment, excise, alcohol, tobacco or firearms taxes, and/or
  • withholds taxes on income, other than wages, paid to non-resident aliens, and/or
  • offers a Keogh pension plan (sometimes called "HR 10" plan),
  • and/or if your business is involved with the following types of organizations:
    • Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
    • Estates
    • Real estate mortgage investment conduits
    • Non-profit organizations
    • Farmers' cooperatives
    • Plan administrators.

Applying for an EIN is a free service offered by the Internal Revenue Service. Businesses can apply for an EIN by phone, fax, mail, or online.

In New York State, businesses with employees must also register with the NYS Department of Labor after receiving their EIN online.




Internal Revenue Service (IRS)
Business Questions Hotline
Phone: (800) 829-4933
7 a.m. to 7 p.m. local time
Website: http://www.irs.gov
Источник: https://www1.nyc.gov/nycbusiness/description/employer-identification-number-ein

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