Application For An Employer ID

An Employer Identification Number (EIN) is also known as the Federal Tax Identification Number and every business owner should have one. It has a nine-digit number given by the Internal Revenue Service (IRS) to business entities operating in the United States for identification purposes. All companies are identified by the IRS using this number.To know whether you company should apply for an ID will depends on the following criteria.

  • You have paid staffs working in your company
  • Your company is registered as a corporation
  • You withhold taxes on income other than wages
  • You have dealing with organizations listed with the IRS

For a new company, you may need some advice or help on how to apply for a Federal Tax ID Number. The application can be done for free on the IRS’s website. Applicants only have to fill up an online form on the website and usually, the process is fast and easy. Applications can be done any day from Monday to Friday between 7 a.m. and 10 p.m. (local time). Once processed, your tax id will be sent to you as soon as possible.You can also send your application through fax or mail.

Make sure you have the following details ready before you apply for EIN. Details such as the name and taxpayer’s ID number of the person responsible for the business. Other required details will be the company’s principal officer, owner, general partner, or grantor and etc.

Once the registered business received its tax id or the EIN, it will not be cancelled. This number remains with the company and will never be assigned to another company.The company’s owner can request for the number to be closed by the IRS. It can be reopened upon request by the company’s owner to the IRS.

Knowing your business type is important before your EIN application. The business type will help determine things such as how much you will be taxed on profits. It will also affect your company and the owner in case there is a lawsuit in the future and the types of bank account you can open for your company. If you cannot determine your business type, you can take the simple survey at the Gov Doc Filing website to help you decide. If there are still questions to be answered, you can call up to make an appointment with the IRS officials.

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