Getting an EIN

The third party designee’s authority extends to « newly » assigned EINs only and terminates at the time the EIN is assigned and released to the designee. No.  (Is the short answer.)  Separate business entities require unique Employer Identification Numbers. If you are the sole proprietor of three separate businesses, you need to obtain and utilize three different EINs.

The application times-out after 15 minutes of inactivity, so make sure to have all of your information ready. I found it confusing and frustrating to get an EIN number at the IRS site. Before you jump into an application, let’s make sure you actually need or want one.

How to Use Your EIN

Lastly, it will ask you to choose one reason that best describes why you are applying for an EIN. As an independent organization within the IRS, the Taxpayer Advocate Service helps taxpayers resolve problems and recommends changes that will prevent problems. If your business is in the United States (U.S.) (or in a U.S. territory), you can apply for an EIN online, by mail, or fax.

Find out where to mail Form SS-4 on the Where to File Your Taxes (for Form SS-4) page. The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S.

Apply online

Companies that change ownership structure must apply for new EINs, as do companies that merge with other businesses. Say Subhash requires an influx of cash and decides to partner with an investor. Once Subhash changes the structure of his company from an LLC to a partnership, he is required to apply for a new EIN that reflects the new entity. You are limited to applying for one EIN per “responsible party” per day by the IRS.

• You only need an EIN number for businesses structured as single-member LLCs if you have employees or excise tax liability.
• The processing timeframe for an EIN application received by mail is four weeks.
• Secondly, your employees will need to file their taxes separately under the LLC’s 1040 form, and they’ll need your EIN for that too.
• If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type.
• Even as a solo entrepreneur, you will need to provide clients with either a Social Security number or FEIN to pay an invoice or for contract purposes.

However, this does not apply to different locations of the same business. If you are the sole proprietor of three locations of the same business, you only need one EIN. Although there are situations where it is possible to transfer an EIN from one owner to another, most of the time a new business owner will need to get a new EIN. This is not due to a specific law, per se, but because ownership change almost always requires a change in the structure of the company such that a new EIN is required. Owners of sole proprietorships are not required to file for an EIN, and can choose to use their Social Security number for the business. Businesses that change their ownership structure usually must apply for a new EIN.

TURBOTAX ONLINE/MOBILE PRICING:

Unless you hire a third party to manage the process for you, applying is free of charge. If you’re unsure whether your business needs an EIN, you can talk to a certified accountant or tax professional for guidance regarding your individual situation. A. Generally, you will receive your EIN immediately when applying online. When paper or faxed Forms SS-4 are submitted with missing information it will delay the issuance of your Employer Identification Number.

Every business needs an employer identification number to report taxes. To request an EIN, applicants must fill out Form SS-4, available on the IRS website. The EIN must not be confused with the tax identification number (TIN) which is a broader term used to describe any type of identification number. Self-employed individuals such as subcontractors don’t need an EIN.

You can think of an EIN as the business version of a Social Security number. If you have one or more employees you’ll want to obtain purpose of ein number an EIN. If you are a single-member LLC, you’re not required to get an EIN for your business but it still makes sense to have one.

To do so, Subhash logged on to the IRS website and entered his personal and business information. Subhash then quickly received an EIN after the IRS validated his information. This gave the IRS a record of Subhash’s business and a means of identifying the store for tax purposes. A TIN is a taxpayer identification number issued by the federal government.