The Internal Revenue Service issues these Employer Identification Numbers and uses them to track tax returns. Tax ID numbers are specific and essential for your company. Apply for an EIN number simultaneously you create your LLC. Although not required, it is possible to submit a sole owner application to get the EIN is also feasible.
How Do I Apply To Obtain An EIN?
The EIN procedure is simple, and there are several options that businesses can pick from:
This is the most efficient method to get an EIN number. Once you have completed the web-based EIN request on IRS’s site, You should be able to receive an EIN number in a matter of minutes.
Although the application is available online, you can apply from Monday to Friday between 7 am to 10 pm (EST).
Apply Via Fax
You’ll need to complete IRS Form SS-4 and select the state you are in. It is suggested that you provide the return fax number to have an average process time of one week. If you don’t include the return fax number, the process can take up to two weeks.
Applications may be faxed to (855) 641-6935.
Apply Via Mail
If you submit your application via mail, the process could take as long as four weeks. Your application will be forwarded to the following address:
Internal Revenue Service
Contact: EIN International Operation
Cincinnati, OH 45999
Specific alternatives may not be accessible based on your location where you live. Online applications are limited to local filings.
Recovering A Lost EIN
It is essential to protect the employer’s ID number. Credit files for business use this number to track your company’s financial performance. It is also used to get loans and prepare your company’s income tax returns.
If you’ve lost the number, it may be replaced or recovered. However, the IRS suggests you try to locate the initial number before contacting help.
You must provide proof for your Internal Revenue Service to obtain an EIN. Information will be released following verification of your legitimacy and identity within the business.
Replacing an EIN is a challenge. Your credit history before the change isn’t a part of this new account. Switching out numbers can appear uncertain to lenders.
Information needed to be included in EIN applications
You’ll have to fill out an SS-4 form and send it to the appropriate agency before you can get an EIN.
The SS-4 form is called the Application for Employer ID Number. It needs basic details about your business, which include:
Name and address of the legal entity
Executor or trustee “care of” or administrator’s name
Name and SSNas well as ITIN, or EIN of the responsible person
The type of organization (partnership, sole proprietor, corporation, etc.)
The reason to apply (new commercial, banking hiring employees, etc.)
The type of product sold or services offered.
If you fill out an SS-4 form that is not complete with details, the issue of an EIN may be delayed. To obtain your EIN swiftly, you must fill in the complete form.
Responsible Information About The Party
Suppose you submit your EIN application via mail, telephone or fax in any other way. In that case, you’ll need to add the name of the person who is the principal fundamental officer trustor, grantor, general partner, or owner. IRS will identify the person who applied as the “responsible person” for EIN applications.
The Internal Revenue Service currently limits EIN issued to one responsible person daily. This is for fairness and equal treatment for all taxpayers. The daily EIN restriction applies to every EIN request, no matter how submitted.
3rd Party Authorization Requirements
You may authorize a third person to act on your behalf and submit and complete the EIN application. Allowing a third party to be your representative may be beneficial if you don’t fully comprehend the EIN application procedure. The obligations of the third party expire after you have received your EIN.
Restrictions on Nominees
It is possible to nominate a person to serve on behalf of your business with minor power. But, a nominee can’t be considered the “responsible entity” to apply for an EIN and shouldn’t be identified as a trustor owner, grantor or officer when filling out the EIN application.
Causes Of A Delay
Most of the time, the process of applying for an EIN is quick, particularly when you apply for an EIN online. However, certain circumstances could cause delays. Companies incorporated outside of the United States and its territories can submit an application for EIN. However, they are unable to apply on the internet. This could result in delays for these companies, as they are forced to depend on more slow procedures.
The most common reason behind delayed applications for businesses that can apply online is the lack of details. As we’ve discussed, specific details must be included in your application. If this information isn’t present, the IRS cannot verify and process the application. It is the same when there is an error in your data, even if it is merely an error. So, checking and validating your application before you submit it is essential to decrease the likelihood of delays.
Make a mistake on your application that cannot be rectified immediately or corrected. You may find your application declined, which can also extend the time it takes to get your EIN. Most often, denials occur because of the issues discussed in the previous paragraphs, which include issues in the application’s name, excessive locations, or general mistakes on the application. Some applications return the error code Error 101. This means that there is some issue with the application. This could be caused by a variety of reasons, such as:
An earlier EIN could have you or an entity named as the responsible party.
Numerous business sites, particularly those that span several states
You may send an amended form to the IRS to rescind the original decision. However, you’ll likely have to submit it via postal instead of online.
While you will receive your EIN promptly and can begin using it to open the bank account you have, request business licenses, or submit tax returns, you will need to be patient until the EIN is permanent before you can electronically pay the IRS or submit your return electronically. It could take as long as two weeks.
Get Help With The EIN You Have Created
Tax & Law Research Inc. is a simple way to apply for your EIN. Please eliminate the stress of working directly with the IRS using our EIN online process. We will provide you with an EIN within a few minutes* and assist you with the application process.
Most EINs are processed the same or the next business day except when bundled with state formations. Processing times can differ.