An Employer Identification Number (EIN) is a particular identification number assigned to a business unit to be quickly identified by the Internal Revenue Service (IRS). Employers widely use it for reporting taxes.
The EIN is also called the Federal Tax Identification Number. When a corporation is identified for tax purposes, it is commonly referred to as a tax identification number (TIN).
This article covers:
- Understanding Employer Identification Number (EIN)
- Why it matters:
- The main focus
- Why do I need an EIN?
- How do I get an EIN?
- Information Required for EIN Application
- How to tax the LLC company?
- What should you do if you lose your EIN?
- Cancel EIN-close account
- What do you have to do if you get an unapplied employer identification number (EIN)Cancel the EIN-close account?
- When would you need a new EIN?
- How to Apply for an Employer Identification Number?
Understanding Employer Identification Number (EIN)
Just as the Social Security Number is used to identify individual residents of the United States, the Employer Identification Number (EIN) is used to identify businesses in the country. The EIN is a particular nine-digit number issued by the IRS that contains information about which state the company is registered in.
Unlike the SSN, the EIN is not considered confidential information and is freely distributed by many companies through publications and the Internet.
The digits of an EIN are created as follows: XX-XXXXXXX. The IRS uses it to identify taxpayers who are required to file various business tax returns.
A businessman who wishes to do business in the United States must apply for an EIN by phone, online, fax, or mail. All types of companies can apply for and issue EINs, such as Limited Liability Company (LLC), sole proprietorship, nonprofit, government agency, S-company, partnerships, estates, trusts, etc. Furthermore, this is not the Case bias towards the company’s size as a single-employee company is as suitable for an EIN as it is for a multinational corporation.
Why it matters:
An EIN helps the IRS differentiate between different employers. Companies sometimes have to get new EINs if their ownership changes significantly.
EINs are for tax purposes only. They do not replace SSNs, authorize a person to work in the United States, or make Social Security qualifications or other benefits. EINs are not the same as a taxpayer identification number (TIN). It is also important to note that EINs are for federal tax purposes; States may have additional identification requirements.
The main focus
An employer identification number is a particular number assigned to a company so that the IRS can quickly identify it.
The application is free of charge. The application form is available on the IRS website and can be quickly completed and submitted electronically.
A company must be located in the United States and have a valid tax identification number before it can be issued with an employer identification number.
Why do I need an EIN?
An EIN is the federal identification number issued by the IRS to identify a business entity. EINs are also known as Federal Tax Identification numbers. Legally, you must identify your job in two ways: your social security number or your employer identification number.
Usually, you need the employer identification number for the following transactions:
- To hire employees.
- To open a bank account.
- To change the organization type.
If you are a single property owner, your social security number can be used on all government forms and other official documents. Still, most small business consultants use an EIN for these official documents that recommend that you apply.
How do I get an EIN?
There is no cost to apply for an EIN, and an application form available on the IRS website is easy to fill out and submit electronically. Once the online data has been verified, an EIN is immediately assigned. However, a company must be located in the United States and have a valid tax identification number before it can be issued with an employer identification number.
A business needs an EIN to pay employees and file business tax returns. Besides, financial institutions such as banks, credit unions, and brokerage houses do not open an account for a company without an EIN. Self-employed subcontractors are typically required to have an EIN, which the main contractor uses to report to the IRS all business amounts paid to the subcontractor.
Employer identification numbers are unique to the companies to which they are assigned. Numbers never expire, and the same set of numbers is never passed on to another company, even if the original employer goes out of business.
Information Required for EIN Application
The next step is to get a Federal Tax Identification Number – EIN Number from the IRS after receiving the Certificate of Formation approved and stamped by the state you have established for your company in the USA.
Below is a list of the information we will ask for from you:
LLC company name:
It is the company’s full name sent to the state office where your company is registered in the USA. At the end of the name, it must be “LLC.”
To whom notifications should go:
The IRS wants to know who to contact, and this person can be found anywhere in the world. For example, LLC company members, such as managers, accountants, or lawyers.
Postal address of the LLC company:
The address to send tax-related correspondence does not have to be in the US.
The country where the company is located :
The IRS needs to know precisely where the company will be. The company’s location can be anywhere in the world and does not have to be in the US.
Name and SSN of the responsible party:
Typically this is one of the LLC members. You should remember that the company member does not need to be a US resident or even an American citizen. The member can reside anywhere in the world. If the member does not have a Social Security Number, this is acceptable, but a Social Security Number (SSN) must be reported.
How to tax the LLC company?
This step can have significant tax consequences for the LLC company and is an important step. Typically, the LLC is automatically classified as a partnership if it has more than one member.
If one person owns the company, its classification is classified as a sole proprietorship for federal tax purposes. This means that assets will be protected in terms of LLC expenses, but taxation will not change for multi-partner or single-owner companies.
Filling in and preparing federal tax return forms with the IRS requires the same federal tax forms for multi-partner or single-owner LLC companies.
The IRS can be taxed an LLC as an S corporation or a C corporation. It would be good to consult with a tax accountant on the possible benefits and consequences of having elections with the IRS as S corporation (S-Corp) or C corporation (C-Corp).
What should you do if you lose your EIN?
If you can’t find your company’s Federal Tax ID number, there are a few ways to find it. If we received the EIN on behalf of your company, we can give you the number. Just call us on +1 949 864 6011 and we will be happy to assist you. Please note that we will resend the number to the e-mail address in our records.
If you still cannot find your Employer Identification Number, you can contact the IRS directly at +1 800-829-4933 Monday through Friday between 7:00 am and 22:00 pm USA Central time.
Cancel EIN-close account
The IRS cannot cancel your EIN. Once it is assigned to a business entity, it becomes the entity’s permanent federal taxpayer identification number. Regardless of whether EIN is used to file federal tax returns, it cannot be reused or transferred to another business entity. EIN still belongs to the original business entity and can be used when needed in the future.
If you get an EIN but later decide that you do not need the number (for example, the new business is not established), the IRS can close your business account.
What do you have to do if you get an unapplied employer identification number (EIN)Cancel EIN-close account?
If you have got an employer identification number ( EIN ) that you did not apply for, you should first determine whether someone is acting legally on your behalf.
Before you think you are a victim of identity theft, it is important to determine why the EIN was assigned to you. A third party may apply for an EIN on your behalf for legitimate business purposes.
Verify whether a third party applies for EIN for legitimate business purposes on your behalf.
Third parties may include:
- Spouse or other family members,
- Community club or association,
- Business partner/partner, or
- Any other third party acting on your behalf (such as financial agents, banks, or trust executors).
Legal business purposes include:
- Apply for an EIN to pay for family health services or other family services.
- You have participated in a partnership or in establishing a company and provided a taxpayer identification number (TIN ).
- You provided your TIN to the community association or accountant to file tax returns for the community association on your behalf.
- You created a trust fund or other financial entity through a bank or an executor.
When would you need a new EIN?
In general, if you change your business structure, you will need a new EIN. If you are a sole owner and file for bankruptcy, you will need an EIN if you didn’t have one previously.
If you are a sole proprietor and incorporate your business, add a business partner or buy or inherit an existing business, or are a sole proprietor, you will need a new EIN.
There are also many cases where existing corporations, partnerships, and limited liability companies need to apply for a new EIN.
How to Apply for an Employer Identification Number?
If your primary business, primary office or agency, or legal residence in the mainland or territories of the United States, you can apply for an EIN in the following ways:
The Internet is the preferred way to apply for an EIN. Online EIN application is available Monday through Friday between 7 am and 10 pm Eastern Standard Time. Once you fill in the application form, the data is verified by an online session and an EIN is issued immediately. Taxpayers who apply online can view, print, and save their EIN designation notice at the end of the session (approved third-party designees will receive an EIN, but the EIN designation notice will be mailed to the applicant). People/businesses with overseas addresses cannot apply online. Key officers, unlimited partners, transferors, owners, trustees, etc. must have a valid taxpayer identification number ( SSN, EIN, or ITIN ) to use the online application. For more information, IRS.gov from EIN Try searching for the term.
Completed Form SS- 4, Employer Identification Number Application PDF to the appropriate fax number (see “Where to Submit Your Tax Data” (for Form SS- 4) to process your EIN. You can receive your EIN by fax, usually within 4 working days. You can apply by fax 24/7 a week.
Written form SS- 4 Form SS- four instructions PDF. You can mail it to the address of the IRS Service Center listed in, or see “Where to Submit Your Tax Data” (for Form SS- 4). Be sure to fill out all required data on Form SS- 4. Form SS- 4 must be sent at least 4 to 5 weeks before the EIN is required for report filing or deposit. You can get your EIN in approximately 4 weeks.
International EIN applicant
If none of your principal place of business, state office or agency, or legal residence (if you are an individual) is in the U.S. mainland or U.S. territories, you are considered an overseas applicant and can only apply for an EIN in the following ways :
Applying by Phone
Overseas applicants can obtain an EIN by calling 267-941-1099 (toll-free) between 6 am and 11 pm Eastern Standard Time, Monday through Friday. The person calling has to be authorized to receive an EIN and answer questions about Form SS- 4, Application for Employer Identification Number. When applying by phone, it is helpful to complete Form SS- 4 before contacting the IRS. The IRS representative will use the information on Form SS- 4 to create an account and assign an EIN.
Apply by fax or mail-You can apply by fax or mail according to the method described above.