One of the most important aspects of running a business is understanding what taxes if any, you need to pay. An Employer Identification Number (EIN) is a nine-digit number that identifies your company as separate from your personal finances, unlike your social security number which might be tied up with other financial information like credit cards or bank accounts.
You can use EIN number when opening new financial accounts such as checking or savings accounts in order to identify yourself as the owner of the business entity. The application process is fairly simple and takes just minutes even if you have no prior knowledge about filling out forms. Just be sure that you have some sort of a US mailing address on file.
The EIN Application Process
The are several ways you can follow to apply for ein number. You can complete the application form online via EIN for free by visiting the irs.gov site and typing “EIN” in the search box. The same site lists other requirements such as your social security number or taxpayer ID number, legal business name, physical business address, and contact person’s name and telephone number.
If you prefer using a more traditional technique of filling out forms, go to page IRS1 for instructions which include obtaining a copy of Form SS-4 from an IRS office or downloading it from the website if you already have one prepared. You will need information about your home address, employer details (if any), company owner or authorized signer, and other relevant information.
What if I’m not a US citizen?
If you are not a US citizen or resident alien, you will need to go through different regulations for setting up an EIN number which can be found on page IRS2 . The process is very similar even if it might look more complicated at first glance. You will need to print out Form SS-4 using one of the links provided by the official site and providing additional information required by that specific version of the document in order to get things going. If you prefer to go the old-fashioned route and use a paper form, you can get one from any IRS office.
Once you complete and mail in your SS-4, you will receive an EIN number by mail usually within 4 weeks. The process typically takes longer if additional information is required or if there are problems that need to be addressed. Just remember that the IRS does charge for this service even if it’s just $5 which might not be such a bad deal considering what other companies might ask you for in order to provide same documents online.
EIN Filing Fees
The good news about how the government handles EINs is that they don’t cost anything when applying for one or using it on current company filings. Almost all other companies that provide a similar service might charge a fee of some sort since they are offering a convenient alternative to the official method.
However, if your business ever needs to amend or update its EIN, there will be additional charges involved. This is because the government charges $50 for any changes made except when it comes to adding sub-units which only costs $12.99.
What to do if you Need Your EIN Faster
If you prefer talking directly to someone in order to get things sorted out, you can apply for ein number the easy way ; you will have your ein application processed faster with less hassle.