5 Steps to getting an employer identification number

EIN is short for employer identification number. It’s a nine-digit number that is assigned by the IRS and it’s used to identify tax accounts of businesses and entities alike. If you’re running a business, you certainly need an EIN. If you’re running a business but have no employees, and in short you’re a one man team offering services in a federal state, you may still to need to get an EIN.

EIN is considered to be the social security number of sorts of a business. It also acts as the employer’s general tax number. It’s a federal requirement for businesses running in the United States or any US territory. There are several ways to apply for an EIN. You can do it online, by phone, by fax, or by mail. If you don’t know where to start, you’re in the right place. You can seek help from firms offering assisted EIN application like federal-ein-application.com. Or you can manually file yours. This article will discuss the steps needed to getting your own EIN.

1. Understand what EIN is for

As mentioned above, the EIN works as a business’s tax identifier. If you’re running a business in the United States, having an EIN is required in many cases. You can use it to open corporate bank accounts and any business related filings that require a non-personal tax identification number. It is used to identify your business as a separate entity from yours.

2. Determine if you’re eligible for an EIN

Businesses or individuals are eligible to apply for an EIN if their primary business is stationed in the US or any US territory. The person applying should also have a valid tax identification number to be able to proceed in the application. Any new business is required to get an EIN for tax filing purposes. You should also get an EIN if you intend to open a bank account for your business, form a corporation or a partnership, or any type of incorporated entity.

3. Choose your preferred application method

As mentioned above, there are different ways to apply for an EIN. Applying online is one of the most convenient methods, but it follows very strict guidelines. Online EIN application is available Monday to Friday, between 7am and 10pm eastern time. As suggested by the site, it’s best to have a copy of the form SS-4 filled out completely before starting the application so you won’t take much time filling out online. The system only allows you to complete the application in a single session, which expires with 15 minutes of inactivity. So make sure you’re ready before opening the EIN assistant.

You can also apply via phone by calling the business and specialty tax line at 800-829-4933, between 7-10 am local time during weekdays. International applicants on the other hand should call a different number, (215) 516-6999. If your application is successful you should be able to get your own EIN by the end of the call.

If you’re not comfortable applying online or by phone, you can also send in your SS-4 application via fax or mail. Send it to your state fax number and wait 4 business days to receive your EIN. You can also mail it to IRS office and wait 4 weeks to receive your EIN.

4. Fill out the form SS-4 properly

Form SS-4 may get overwhelming at first but it shouldn’t be as long as you fill it out properly and correctly. The form would ask for your legal name, trade name, mailing address, and responsible party. It’s required for you to supply your SSN, ITIN, or EIN too. Select the type of entity you intend to register for. Scroll through the form and practice answering it first before submitting online. Review your application because if you’re applying via phone, an IRS agent would ask you questions based on the form. So it’s best to be consistent and ready with your answers.

5. Submit your application

Finally, submit your application and wait to receive your EIN. If you chose to apply online, you can immediately get your EIN after the form you submitted has been validated. In phone applications, you should be able to receive your EIN by the end of the call. Fax and mail applications take time though, so you should consider if you’re in a hurry to get an EIN.