Are you planning to start a small business? You may feel that you have already thought about everything until you realize that you have not gained enough information about EIN yet. If you are not familiar with this, EIN stands for Employer Identification Number. This is something that you can get if you want to avoid problems with the IRS.
You are already familiar with different Americans having their own SSN, right? The EIN would be like the SSN but for small businesses. You may be required to get this when you are about to hire some employees to work for your company. The EIN will also be helpful in distinguishing your business from all of the other businesses that are available.
How to Apply for EIN
It is possible that you did not hear about EIN before. Now that you are learning more about it, it is already clear that you should apply for tax id soon. This should not be complicated. As long as you are a resident of the United States, you can apply for the EIN online.
You need to determine first if you are eligible to get an EIN. These are some of the things that will make you eligible:
- Your business should be located in the United States.
- Your business should be located in a place that is considered to be a territory of the United States.
- It is best that you have a valid taxpayer number in the form of SSN or others before you start your application. Without a taxpayer’s number, you will not be able to continue.
If you fit the requirements that are mentioned above, it is time to proceed and get your EIN.
The Online Application
One of the advantages of having a business in the United States or any US territory is you can complete your application for EIN online. Those who are from outside the country would need other forms of application to continue.
- The application for the EIN should be completed in one session. If you are not able to do this, you would need to do it again.
- If in case you leave the application idle for 15 minutes, the session will expire. You can try again another day if this occurs.
- The EIN filing service will be available to guide you while you are completing the application form.
Once you have completed the form, it will be validated by the system. You will be sent the EIN through different forms depending on your choice. A lot of people would love to get it through email so that they can refer to their email if needed. You can also print it out and keep it in a safe place.
Take note that you will not be able to get an EIN if the company has already been registered before. There is only one EIN for every business that is registered through the system. You may also want to know more about getting an LLC application if you think that this is needed for your business.