How to Apply for an Employee Tax ID Number

So you are thinking about starting your own business. You already have a product or service in mind and even have the money saved up for your start-up costs. However, you are not sure if you need to have an Employee Tax ID number or EIN. You definitely need to have one if you are going to have employees or if you are going to operate as a corporation or have a partner in your business. Even if you are the sole-proprietor, you must contact the IRS to see if you meet certain conditions that require you to have one. Easy to do, there are several ways you can apply for you EIN.

By far, the quickest, easiest and most convenient way to apply for your EIN is online, providing that your business is located in either the United States or its territories, through the IRS website, www.irs.gov. The application process leads you through a series of questions, such as the type of business and how many employees you are planning to have. When you have completed the application, you will get a confirmation number and immediate access to your EIN.

While, many households have computers with Internet access, you may be one of those few who like to do things the old fashioned way. Do not fear you can apply for your EIN just by calling (800) 829-4933. If your business is not located in the United States or its territories you must call (215) 516-6999. A telephone operator will take your information and complete your application for you. As with applying online, you will immediately get your EIN.

As soon as you get you Employee Identification Number you can use it immediately to apply for your business license, open a business bank account and to mail in your tax returns. However, to file taxes and do banking electronically you have to wait approximately two weeks to do this. This is the normal wait time for your EIN, when you apply online or over the phone, to be permanently registered in the IRS record.

You may prefer to apply the even more old-fashion was by submitting a paper copy of the SS-4 application. You can either get this by going to a local IRS building or by calling the IRS. Once you fill out the application, you can either fax it to the IRS or mail the form back. Using the United States Post Office is the slowest way to get an EIN. It may take up to four weeks to get your number. Even though by the time you get it, the EIN will be permanently registered, you will not be able to apply for a business license until you get it. Call the IRS to get the fax number or the address if you prefer to mail the form.

Once you get your EIN, it is yours to keep. A duplicate number will not be given to another business. If you decide that you no longer need the Employee Identification Number, such as you change your business where you do not need an EIN, you must send a letter to the IRS. Include in this letter the business name and address, the EIN and the reason why you no longer need the EIN.