How to apply for an Employer Identification Number?
An Employer Identification Number is also considered as a Federal Tax Identification Number and issued by the IRS as an identity proof of every business in the US. This service is free of cost and you don’t have to pay any amount for its application. Beware of the websites available online that charge for this free service. To apply for an EIN you have to fill the application Form SS-4, in which you have to disclose the name and taxpayer identification number (SSN, ITIN) of the owner, partner, or trustee. The applicant is a government entity, and the responsible party must be a natural person, not any business entity.
Every new business that is going to be open in the US must require an EIN. But some business owners don’t know how to apply for an EIN number.
Follow the instructions given below and get an EIN number for your Business.
1. Check your qualification for an EIN
Basically, two requirements must be met to apply for an EIN number.
● First, your principal business must be situated in the United States.
● The person who is applying for an EIN number must have a valid taxpayer identification number such as SSN (Social Security Number)
Your principal business resolution by identifying the main income coming through a business activity that you do must be done physically in the US. If you are providing services outside the United States doesn’t mean that you don’t meet the eligibility requirements to apply for an EIN number.
The person who is applying for an EIN doesn’t need to be the business owner. The applicant can be the officer or partner of the business. The IRS allows every responsible party, who manages the finances of the company can apply for it. Another person, like an assistant or secretary, can also apply for it by filing Form SS-4 by signing the third party section.
2. Collect the Necessary Information
You should start with reviewing the PDF edition of Form SS-4, by which you can ensure that you have all the required information which is required to fill the form such as, Name, Address, and Social Security Number of the responsible party.
You also need to know about the type of business entity of your company. And if you have a multi-member LLC, you must know about the number of members.
Other required information, you”ll need is:
● Reason for applying
● The date you started the business
● Closing months of your accounting year
● The date you pay the wages in your business
● Primary business, with a description of the main product.
3. Apply for an EIN by Mail, Telephone, Fax, or Online.
There are four options available by the IRS to apply for an EIN as you can see above such as through mail, telephone, fax online. The online application is an easy and fast method for all US-based candidates. And the candidates who are currently overseas for business purposes can apply through telephone.
For an online application, you just have to visit the EIN website and follow some steps of filing Form SS-4. but you can only apply from Monday through Friday from 7 a.m. to 10 p.m.
