What Is an Employer Identification Number EIN?

First of all, not all business entities are required to have an EIN. Also known as the Federal Employer Identification Number (FEIN), the EIN is a single, federal identification number. Most states also require businesses to obtain a state tax ID number (sometimes referred to as a ‘state identification number’). If you make common changes to your business, like changing the name or address of your business, you won’t need a new EIN.

You will have the option of receiving your confirmation letter online or by mail. After the application is complete, you will receive your EIN immediately. It is important to download, save or print your EIN confirmation notice as soon as it is received. If you provide a fax number on the application, you should receive a fax with the EIN within four business days.

Do I Need an Employee Identification Number?

Many sole proprietors and single-member LLCs aren’t required to have an employer identification number if they don’t have employees. Instead, they can generally use their Social Security number or Individual Taxpayer Identification Number when filing their business taxes. As soon as your business is officially formed – i.e., you got your formation date and legal business name approved by your state – you can start the EIN application process.

Employer Identification Numbers do not, themselves, expire or change. There are, however, situations where you need to obtain a new EIN. If you have a legitimate business need of another company’s EIN, the best thing to do is to call and ask them for it. As long as you are candid and credible, there is no reason for them not to give it to you.

Deciding If You Need an EIN

It is very important that each individual business with filing and payment responsibilities have its own EIN. Every organization must have an employer identification number (EIN), even if it will not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service. If you answer yes to any of the questions in the list, you need to apply for an EIN. The EIN is not considered to be sensitive information the same way a Social Security number is and is freely distributed by businesses online and in print publications.

Doing so on the IRS website only takes a few minutes, and you’ll get your EIN immediately. Make sure to save your confirmation letter so you can look up your EIN in the future. For certain types of business tax deductions, such as home purpose of ein number office deductions, your chances of an IRS audit may decrease if you have an EIN. An EIN helps demonstrate to the IRS that you actually have a business. We believe everyone should be able to make financial decisions with confidence.

Purpose of the SS-4 Form

The processing time for a mailed application is about four weeks. Publication 15PDF provides information on employer tax responsibilities related to taxable wages, employment tax withholding and which tax returns must be filed. More complex issues are discussed in Publication 15-APDF and tax treatment of many employee benefits can be found in Publication 15.