The Employer Identification Number (EIN) is a unique nine-digit number assigned to businesses in the United States. It is used by the government for tax identification purposes. Having an EIN is necessary for businesses to perform tasks such as hiring employees, opening bank accounts, and filing taxes. Certain types of businesses, such as those with employees or those that are partnerships or corporations, are required to have an EIN. Businesses can obtain an EIN by applying online, by phone, fax, or mail.
The Employer Identification Number (EIN) is a unique nine-digit number assigned to businesses in the United States. It is also referred to as the Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). The EIN is used by the Internal Revenue Service (IRS) to identify businesses for tax reporting and compliance purposes. Businesses can apply for an EIN online, by phone, fax, or mail. The application must be submitted after the business has been officially established but before it commences its day-to-day operations. The application requires the following information: the type of business entity, the reason for applying (new business, change of organisation, IRS withholding requirement compliance), the start or acquisition date, and the principal industry of the business. An EIN is necessary for various business activities, such as hiring and paying employees, opening bank accounts and obtaining loans, and filing taxes. Examples of businesses that require an EIN include those with employees, partnerships or corporations, businesses that file excise taxes, businesses that withhold taxes for non-wage income paid to nonresident aliens, sole proprietorships with employees, single member Limited Liability Companies (LLCs) with employees, and nonprofit organisations. For more information about the EIN, please visit the official website.
An EIN is a unique nine-digit number assigned by the IRS to identify a business entity for tax purposes.
Most businesses are required to have an EIN if they have employees, operate as a corporation or partnership, or file certain types of tax returns.
You can apply for an EIN online through the IRS website, by mail, or by fax. There is no fee to apply.
If your business is a sole proprietorship with no employees, you may be able to use your social security number instead of an EIN for tax purposes.
No, each separate business entity should have its own EIN. However, certain types of business entities, such as subsidiaries and affiliates, may be able to use the same EIN under certain circumstances.
You can contact the IRS to retrieve your EIN or request a new one if necessary.
Yes, you can cancel an EIN if your business closes or if you no longer need it for tax purposes. You can do this by sending a letter to the IRS.
Yes, you can update the name or address associated with your EIN by contacting the IRS and providing the necessary information.
If you are a freelancer or independent contractor and do not have employees, you may be able to use your social security number instead of an EIN for tax purposes.
Yes, you can use your EIN to open a business bank account, apply for business loans, and conduct other financial transactions related to your business.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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