What all do you know about the federal employer identification number? Who requires it? Who doesn’t need it? Will you be able to function in your respective sector if you do not have your EIN? Let’s discover some of the most important facts about the federal EIN application right away.
1. What Is An EIN Number?
The EIN is also known as the employer identification number in layman’s terms. The federal EIN is used to identify businesses.
The 9-digit series helps IRS to keep track of the taxes that have been filed by any business entity. It is somewhat similar to your social security number but has a lot of other uses and applications. It applies to an enterprise or a company rather than an individual.
You will need to apply with the IRS with your social security number when you apply for your employer identification number. This means that you are connected to the business and will be responsible for all its dealings.
You as the owner will be responsible for overseeing the operations of the business and the movement of all its funds and assets as well.
2. What Is The EIN Used For?
The EIN or the employer identification number has several uses such as:
- With the help of this number, all the essential tax-related details about a company can be made available on one single platform
- Under the Income Tax Act, this number facilitates identifying assets
- If you run a business or are in trade, manufacturing, sale, or export of goods and services, you will require this number
- All your intrastate and interstate transactions can be streamlined because all your information will be in one place
- If there happen to be two businesses with similar names, the revenue department will be able to distinguish between the two using this number
3. What Does An EIN Number Look Like?
Your employer identification number looks somewhat like your social security number. But it is 9 digits long and is assigned by the federal government. The typical format is XX-XXXXXXX.
4. How Much Does An EIN Cost?
You can contact DOT Compliance Group to know the updated costs.
There are several ways through which you can obtain your employer identification number. However, it is advised that you should get in touch with your third-party administrator for the same.
Applying for it all by yourself and going through the entire procedure can take a lot of time and may be a little too complicated.
You will have to take care of the following requirements if you want to obtain your employer identification number:
- You must have a legal business structure already formed such as a sole proprietorship, a partnership firm, a corporation, or a trust
- Your business must be located in the United States or any of its territories
- You must also have a valid taxpayer identification number
- You can either have a social security number or an ITIN
- Once your application is complete and submitted, you will receive your EIN immediately
5. Do EIN Numbers Expire?
No. Your federal EIN does not expire. Once it has been issued to an entity it does not get re-issued.
6. Do You Need A New EIN Number Every Year?
No. Generally, there is no such thing as acquiring a new EIN every year. However, you will need a new Employer Identification Number if the ownership of your company has changed.
If you have decided to change the structure of your enterprise, you may have to apply for a new number. If you decide to change the name of your company, you may NOT obtain a new EIN.
7. How To Apply For An EIN Number?
Applying for your EIN number is very easy. It is a free service provided by the Internal Revenue Service. There are four ways to apply for your employer identification number.
You can apply online, apply through fax, apply via mail, and apply through a telephone call. In any case, you will receive your federall EIN number almost immediately.
Nevertheless, it is always advisable to seek the assistance of a dot compliance manager to handle the task at hand. By doing so, you can avoid the hassle of filling out complicated forms or trying to understand the complex requirements of your employer identification number application.
Your TPA will be able to do that without you having to do anything at all.
8. How Long Does It Take To Get An EIN Online?
Once you have applied for your employer identification number online, you can expect to receive it almost immediately. Additionally, if you choose to complete the form SS4 and fax it to the service, you can expect a response within approximately one week.
9. How Can I Get A Copy Of My EIN Confirmation Letter?
You can ask your third-party administrator to get in touch with the IRS directly. They will request a replacement confirmation letter. This is the 147C letter. You will get this for you on your behalf from the IRS.
So there you go. Now you know plenty of things about the federal EIN application. Just get in touch with your third-party administrator and ask them to do the needful.
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