Starting a new business is an exciting venture, but it comes with a list of essential tasks. One of the first things you’ll need to do is secure an Employer Identification Number (EIN), a critical step for opening a business bank account, applying for loans, and hiring employees. Without it, many of the financial and legal aspects of running your business can’t move forward.
In 2021, nearly 5.4 million new business applications were filed — the highest number ever recorded, according to the Census Bureau. This surge shows just how many entrepreneurs are jumping into new opportunities. But the journey from applying for an EIN to actually launching a business can be complex, with only a portion of those applications making it all the way to successful business formation.
That’s why expert advice can help. At SWAT Advisors, we make getting your EIN quick and easy. Our team knows the process well and can guide you every step of the way.
In this guide, we’ll show you the quickest ways to get an EIN, share useful tips, and explain how we can help you get it without hassle. If you have questions, our experts are here to assist. Read on to learn how to get your EIN quickly and start your business smoothly.
What is an Employer Identification Number (EIN)?
An Employer Identification Number (EIN) is a special nine-digit code (formatted as XX-XXXXXXX) given to businesses by the Internal Revenue Service (IRS). This unique identifier helps the IRS easily recognize the business for tax purposes.
Employers often use EINs when they report their taxes. How to get a EIN number is straightforward and can be done directly through the IRS, wherein they typically provide the number immediately.
Much like Social Security Numbers (SSNs), which identify individuals in the United States, EINs are used to identify business entities. Also known as Federal Tax Identification Numbers, EINs include information about the state where the business is registered. The IRS uses these numbers to track taxpayers who need to file different business tax returns.
You need an EIN if you:
- Have employees
- Run a corporation or partnership
- File specific tax returns
- Withhold taxes on income paid to non-resident aliens
- Have a Keogh plan
- Are involved with certain organizations like trusts and estates
Businesses must apply for an EIN before starting operations, which can be done by phone, online, fax, or mail.
When Do You Need an Employer Identification Number (EIN)?
Wondering if you need an Employer Identification Number (EIN)? Here are some clear signs that you do:
- If you have even one employee, you’ll need an EIN.
- Operating as a corporation or a partnership? You need an EIN.
- Filing taxes for employment, excise, alcohol, tobacco, and firearms? An EIN is required.
- Withholding taxes on income (not wages) paid to non-resident aliens? Yep, you need an EIN for that too.
- If you have a Keogh retirement plan, you’ll need an EIN.
- Trusts, estates, non-profits, and similar entities all require an EIN.
In short, if any of these situations apply to you, how do I obtain an EIN number is a question you should be asking to comply with IRS regulations and keep your business running smoothly.
Types of Entities Eligible for an EIN
Many different types of businesses and entities can obtain an Employer Identification Number (EIN). These include:
- Real Estate Mortgage Investment Conduits (REMICs)
- Farmers’ cooperatives
- Government entities
- Non-profit organizations (NPOs)
- Personal service corporations
- Partnerships
- Indian tribal governments and enterprises
- Sole proprietorships
- Military entities
- Government agencies
- Plan administrators
- Limited liability companies (LLCs)
- S corporations
- Corporations
- Trusts
- Estates
- Churches and church-controlled organizations
The IRS does not favor large companies over smaller ones. This means that businesses with just one employee are just as eligible to get an EIN number as large multinational corporations.
Step by Step Guide: How to Apply for a EIN Number Online?
Applying for an Employer Identification Number (EIN) can be done in a few simple steps. Here’s how to get a EIN number for business:
Step 1: Start the Application
- Visit the IRS website and proceed to the EIN application page. Scroll down and click the “Begin Application” button.
Step 2: Choose Your Business Structure
- Select the legal and tax structure of your business. This is important as each type has different rules and tax reporting requirements.
- For an LLC, click the “Limited Liability Company (LLC)” button.
- For a corporation, click the “Corporations” button, and specify if it’s a regular corporation or an S corporation.
- Click “Continue” after making your selection.
Step 3: Provide Information About LLC Members (if applicable)
- If your business is an LLC, specify the number of members and the state where your business is located.
- Enter the number of members and select the state from the drop-down menu.
- Confirm your selection as either a Single-Member LLC or a Multi-Member LLC.
- Click “Continue.”
Step 4: State the Reason for Applying
- Explain why you need an EIN. Your options include:
- Started a new business
- Hired employees
- Banking purposes
- Changed type of organization
- Purchased an existing business
- Click the “Started a New Business” button in most cases, then click “Continue.”
Step 5: Identify the Contact Person
- Designate a contact person, referred to as the “responsible party,” who handles tax matters for the business.
- For sole proprietorships or partnerships, this is typically an individual.
- For corporations, this should be a corporate officer.
- Provide the necessary information about the responsible party, including name and Tax Identification Number (SSN, ITIN, or EIN).
- Click “Continue.”
Step 6: Provide Business Location
- Enter the physical address of your business, which must be a U.S. address (no P.O. Boxes).
- Include a phone number.
- If you have a separate mailing address, provide it when prompted.
- Click “Continue.”
Step 7: Enter Business Information
- Provide the legal and trade name of your business, the county and state where it’s located, the state of formation, and the start date.
- Ensure the legal name matches your formation documents.
- Optionally, provide a trade name if you use one.
- Click “Continue.”
Step 8: Answer Federal Excise Tax Questions
- Indicate whether your business is subject to specific federal excise taxes related to vehicles, gambling, quarterly returns, or alcohol, tobacco, and firearms. Read the questions and provide your answers.
- Click “Continue.”
Step 9: Describe Your Business
- Choose the category that best describes your business. If none fit, select “Other” and provide a description.
- Click “Continue.”
Step 10: Choose How to Receive Your Confirmation Letter
- Decide if you want to receive your EIN confirmation letter online or by mail.
- For online, you can view the letter immediately.
- For mail, it will be sent to the provided address, which may take up to four weeks.
- Click “Continue.”
Step 11: Verify Your Information
- Review the summary of your application. If everything is correct, click the “Submit” button to receive your EIN. This process may take up to two minutes.
- If you forget your EIN, call (800) 829-4933 to speak with an IRS employee who can assist you.
By following these how do I get an EIN number steps, you can easily apply for an EIN and ensure your business meets IRS requirements. If you need any assistance, SWAT Advisors is here to help you regarding how to get an employer identification number.
Moreover, in case you need help with succession planning services or family tax services, we are here to assist you with those as well.
Applying for a New EIN Using the Paper SS-4 Form
While the online application is the easiest way to obtain an EIN, there are other methods available. One such method is applying using the paper Form SS-4. Steps to get an EIN number using the paper Form SS-4:
Download the Form
Go to the IRS website and download Form SS-4, “Application for an Employer Identification Number.” You can find the form and its instructions on the IRS website.
Complete the Form
Fill out the form with all the necessary information. Make sure to provide accurate details to avoid any delays.
Submit the Form by Mail
Mail the completed Form SS-4 to the appropriate IRS address. The address can be found on the IRS website under “Where to File Your Taxes (for Form SS-4).” The processing time for mailed applications is about four weeks.
Submit the Form by Fax
Alternatively, you can fax the completed Form SS-4 to the appropriate fax number listed on the IRS website. If you provide your fax number on the form, you will receive your EIN via fax within four business days.
Applying for a New EIN by Telephone
You can also apply for an EIN by phone if you need it immediately.
Prepare the Form
Before calling, download and fill out Form SS-4 as best you can. This will help you provide accurate information during the call.
Call the IRS
Dial (800) 829-4933 between 7:00 a.m. and 10:00 p.m. local time, Monday through Friday. On a side note, verify again before dailing their number. That said, be ready to answer questions about the information on Form SS-4.
Receive Your EIN
The IRS representative will issue your EIN during the call.
Additional Notes to Keep in Mind While Applying for EIN
- Daily Limitation: The IRS issues only one EIN per responsible party per day.
- Responsible Party: The application must include the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the principal officer, general partner, grantor, owner, or trustor.
- Third Party Authorization: If someone else is applying on your behalf, complete the Third Party Designee section.
How Long Will It Take to Get an EIN?
Applying for an EIN should be done in advance to ensure you have the number when you need to file a tax return or make a deposit. Here’s a breakdown of the different methods and timeframes for how long does it take to get EIN number:
- Online Application: This is the fastest method. By applying online, you can get your EIN immediately.
- International Applicants: Must call 267-941-1099 to apply (note that this is not a toll-free number).
- Fax Application: Fax a completed Form SS-4 to the IRS service center for your state. If you include a return fax number, you will receive your EIN in about one week. Without a return fax number, it will take approximately two weeks.
- Mail Application: Send your completed Form SS-4 at least four to five weeks before you need the EIN to file a return or make a deposit.
If your EIN has not arrived by the time your tax return is due, write “Applied for” and the date you applied in the space designated for the EIN on your return. Do not use your Social Security Number in its place.
For deposits due before you receive your EIN, send your payment to the IRS service center for your state. Ensure your check or money order is payable to the IRS, and include your name (as shown on the SS-4), address, type of tax, the period covered, and the date you applied for your EIN.
What Can I Do With My EIN Number?
Once you have your Employer Identification Number (EIN), it opens up several important opportunities for your business. Here are nine key things you can do with your EIN:
- Open a Bank Account: Most banks require an EIN to open a business bank account. This helps verify your business with the tax authorities and is essential for managing your business finances.
- Apply for Business Permits: To legally operate your business, you may need various licenses and permits. An EIN is often required to apply for these, including business licenses, seller’s permits, and zoning permits.
- File Tax Returns: Every business needs an EIN to file taxes. The EIN functions like a Social Security Number for your business, allowing the IRS to track your tax filings.
- Hire Employees: If you plan to hire employees, you must have an EIN. It is necessary for reporting and paying federal and state unemployment and payroll taxes.
- Start a Corporation or Partnership: Before forming a corporation or partnership, you need an EIN. This number is required for the legal formation and operation of these business structures.
- Withhold Taxes: Businesses that withhold taxes on income other than wages paid to non-resident aliens need an EIN to comply with IRS regulations.
- Apply for a Credit Card: Many credit card companies require an EIN to issue a business credit card. This helps establish your business’s credit profile.
- Apply for Loans: If you need a loan to fund your business, lenders often require an EIN as part of the application process to verify your business’s identity.
- Create a Trust, Estate, or Non-Profit: Trusts, estates, and non-profit organizations need an EIN for their legal and tax activities. An EIN helps manage their financial responsibilities and compliance with the IRS.
By understanding these uses, you can make the most of your EIN number for a business and ensure your business operates smoothly and complies with all legal requirements.
If you have any further questions or need more personalized help, reach out to SWAT Advisors. We have 30+ years of expertise and can guide you if you have a question in mind about how can I get a EIN number efficiently and correctly.
By leveraging your EIN effectively, you can ensure that your business is set up for success and compliance from the start.
End Note!
Having an EIN is essential for managing and growing your business effectively. Whether you’re opening a bank account, filing taxes, or hiring employees, your EIN is a critical piece of your business identity. If you’re wondering how can I get an EIN, we’re here to help. All you need to do is drop us a line or book a consultation.
If you ever misplace your EIN, you can find it on the notice sent by the IRS when it was issued. It might also be on previous tax returns or available through your bank. If needed, you can contact the IRS directly at 1-800-829-4933. Remember, the EIN is a specific type of Tax Identification Number (TIN), so don’t confuse the two.
If you are still in doubt, how do I get an EIN? Our team of experts at SWAT Advisors can guide you through the process in a simple and understandable manner.
Additionally, we specialize in helping you manage your wealth and ensure a secure financial future. Our team provides comprehensive support with advanced estate planning strategies and advanced tax planning to optimize your financial outcomes.
