What is An EIN
What is an EIN?
An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses and other organizations for tax purposes. Employer Identification Numbers are required for businesses that have employees, file certain types of tax returns, or open bank accounts.
Who Needs an Employer Identification Number?
The following types of businesses and organizations need an EIN:
- Corporations
- Partnerships
- Limited liability companies (LLCs)
- Sole proprietorships with employees
- Trusts
- Nonprofits
- Government agencies
How to Get an EIN
There are three ways to get an Employer Identification Number:
- Online: You can apply for an Employer Identification Number online through the IRS website. This is the quickest and easiest way to get an EIN.
- By mail: You can apply for an Employer Identification Number by mail by filling out Form SS-4 and mailing it to the IRS.
- By phone: You can apply for an EIN by phone by calling the IRS at 1-800-829-4933.
Benefits of Having an EIN
There are several benefits to having an Employer Identification Number, including:
- You can open a business bank account.
- You can hire employees.
- You can file certain types of tax returns.
- You can get a business credit card.
- You can apply for government grants and loans.
Conclusion
An Employer Identification Number is a valuable asset for any business. It can help you open a business bank account, hire employees, file taxes, and get a business credit card. If you don’t have an EIN, you should apply for one as soon as possible.
Call to Action
If you need help getting an Employer Identification Number, you can contact the IRS at 1-800-829-4933 or visit the IRS website. It does not take too much work to get the number, however, if you are still uncertain about any aspects of the registration, feel free to give us a call and set up a free consultation with our Business Formation Specialists at Business🚀Rocket