A. An EIN is a number assigned to your business by the IRS (similar to what a social security number does for an individual) that is used on tax returns, business licenses, and any forms that require you to fill in an IRS number to specifically identify your business.
B. An EIN can be used when you open a business banking account to help separate business and personal expenses.
C. All employers with one or more part time or full time employees must have an EIN. If you pay independent contractors for services valued over $600 you must have an EIN as well.
D. Anyone who registers as a limited liability company, corporation, partnership, or joint venture must have an EIN.
E. If you do not have any employees, you are not required to have an EIN.
F. You can apply for an EIN online (or by fax, phone or mail) for free from the IRS at this website: https://sa.www4.irs.gov/modiein/individual/index.jsp. You can begin using your EIN immediately after receiving confirmation.
ONLINE WITH THE APPROPRIATE INFORMATION (ASSUMING YOU QUALIFY) IS THE MOST EXPEDIENT METHOD AND OUR RECOMMENDED METHOD.
G. Before attempting the online process, to apply for an EIN you need to gather the following information:
- The name (actual legal name), address, and entity type of your company (like LLC or corporation);
- Decide how you will be taxed: partnership, S corp, C corp, etc.
- The formation date of the company;
- End of your tax year date (like 12/31 for example);
- The name of the responsible party (and SSN!);
- The estimated date of the company’s first payroll (if any).
Armed with this information, you can quickly take care of getting an EIN for your company yourself. The IRS has designed the process to be DIY for the average person. Having said that, occasionally there are complicated situations where you should seek counsel.
Carroll Counsel PLLC can apply for an EIN for your company through an SS-4 as part of your incorporation process, or independently, please contact us if you need assistance obtaining an EIN for your company.
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