How To Get an EIN Number

How To Get an EIN Number

An EIN (employee identification number) is required for any company that has employees, or if you’re planning to start your own business, it is also necessary to have one. EINs are also known as the social security numbers of any business. So in this article, we’re going to discuss what an EIN is, why you should have one, and much more. 

What is an EIN, and how do I get one?

An EIN is a number that’s assigned by the internal revenue service to identify businesses for taxation. The EIN is like the federal tax identification number for your business, and as mentioned earlier, an EIN is like a social security number for your business. EINs can sometimes also be referred to as FEIN (federal employer identification number), TIN (taxpayer identification number), or FTIN (federal tax identification number). To get an EIN, someone has to form the LLC first and then apply for the EIN by visiting the IRS website and carefully following the steps to receive one. 

What is an EIN, and how do I get one

Why Should I Have an EIN?

An EIN isn’t a requirement for every business, but getting one is still very necessary. The IRS requires that business owners who need an EIN should agree on the following: 

  1. Have Employees
  2. Operate the business as a corporation or partnership
  3. File any of these tax returns (employment, excise, alcohol, tobacco, or firearms)
  4. Withhold taxes on income other than wages paid to a non-resident alien.
  5. Have a KEOGH PLAN.
  6. Involved with these organizations (many kinds of trusts, estates, real estate mortgages investment conduits, non-profit organizations, farmers cooperatives, and plan administrators.)

It is essential to have an EIN if you plan on starting your LLC, and if you have multiple LLCs, each one would need its own EIN. Additionally, there are also tons of benefits to having one.

Why Should I Have an EIN

What are the benefits of having an EIN?

There are countless benefits of having an EIN. Having an EIN is essential to businesses who intend to get the following done:

  • Receive bank loans
  • Prove that the company does exist
  • For credit card processing
  • To apply for a business license
  • Amazon reselling
  • To apply for resellers permits
  • To acquire more credit
  • To apply for wholesale licenses
  • File taxes
  • To open a bank account

 

the benefits of having an EIN

How do I apply for a new EIN?

EINs are free to get, and if you need to apply for an EIN, you can visit the IRS website. There is a step-by-step process to do so.

  • Get to the IRS website and verify what you need to get started before you apply. These are determining your eligibility, understanding the online application, and finally submitting your application.
  • Click apply now, and you will be directed to a page where you can begin the application within the EIN assistant.
  • Click begin the application, and you will be able to choose the type of legal structure you are applying for, like a sole proprietor, partnerships, limited liability, corporation, estate, and trust. 
  • Choose what type of structure you’re applying for to go through the process and fill in the information in each of the following tabs (identity, authenticate, addresses, details, and EIN confirmation).

 

Where can I find more information about EINs or how to apply for one?

There are several other websites that you can find out more information about EINs, and some of those websites charge a fee to complete the application for you, but by visiting the IRS website, it’s completely free. 

find more information about EINs

FAQs about applying for a new EIN

Can I get an EIN without a business?

You don’t need an EIN if you do not own a business. The EIN is like a social security number for a company that identifies the business for taxation purposes. 

Can I start a business without an SSN?

Yes, you can start a business without an SSN, but you will need an EIN to have your company. 

How much would it be to get an EIN?

To get an EIN, it is free once you apply through the IRS website.

Is my business EIN the same as my SSN?

Your business EIN is not the same as your SSN. Your SSN is yours, and the business EIN is only for the company.

Can I go online and look up a business EIN?

Yes, you can go online and look up a business EIN. You can visit websites to do so for free, or you can pay to do so.

How do I know if my EIN is still active?

To find out if your EIN is still active, you can call the IRS to verify. 

How many digits does an EIN have?

An EIN has nine digits.

Can the IRS deny me an EIN?

Yes, you can be denied by the IRS for an EIN if your business name isn’t unique or the IRS finds a similar entity name

What can I do if I forget my EIN after applying?

After applying for an EIN, if you’ve forgotten your number, you can call the IRS at (800) 829-4933, and someone will assist you in retrieving your EIN.

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