Due to the fact that most business owners will need to get an EIN number for tax reports, it’s important that you have yours sooner rather than later. Luckily for those who are unsure of how to go about it, we’re here to fill you in on what you need for the process – as well as to give you a helping hand in understanding what it is, why it’s needed, and other parts of the process that you may want to know about.
What is an EIN number?
Issued by the IRS, an Employer Identification Number is generally going to be needed for most businesses for tax purposes. You may also hear them referred to as a Federal Tax Identification number.
The Internal Revenue Service provides business owners with their unique 9-digit code for tax reporting purposes. In general, it won’t be too difficult to get an EIN number – and since it’s a necessity for many employers, it’s certainly worth looking into, even if you don’t meet the requirements for one just yet.
On that note, while it doesn’t hurt to be prepared, you shouldn’t get an EIN number until you have a business set up. In order to apply for one, you’ll need to provide information based on your company, like the legal name of your business or the date it was established.
How to apply for an EIN number
There are usually going to be quite a few steps in the application process, and in most cases, it’ll be a good idea to familiarize yourself with it. Looking to learn a little more about what to expect? Here’s a quick look at the process most business owners must go through to get an EIN number when applying online.
1. Determine if you’re eligible for an EIN number
Before you get in touch with the IRS, you could save time by first checking that you’re actually able to get an EIN number. For example, they are mostly only available within US territories, and you must have a Taxpayer ID number to obtain them.
2. Prepare yourself for the application process
Since there’s a 15-minute timer, you’ll need to fill out the form within this timeframe before it expires. If this happens, you’ll need to go back to the start. Furthermore, you’ll need to complete it in one session. So, it’s generally a good idea to make sure that you’re prepared before you start.
3. Check over and submit the EIN form
Once you’ve filled the application form out and know for sure that all the information provided is correct, you can send it off to be reviewed. Keep in mind that all this will usually be done within the same online session. When the validation process has been completed, you’ll receive your confirmation notice and your number – and that should be it.
Fortunately for anyone who’s still a little unsure of what to do or how to go about getting an EIN number, we’re here to help.
How long does it take to get an EIN number?
Usually, the time it takes to process your application will vary quite a bit. It can rely on quite a few factors, but one of the most important is how you get in touch with the IRS.
When going through the traditional route of mailing the IRS, you’ll usually get a response in 6-10 days, but the actual process to get an EIN number will typically take a little longer. In fact, you can often expect to get your number in a month or so, depending on several factors. Those who apply by mail, for example, will usually find the process will take around four weeks, whereas online applicants may find that they can get their number far quicker.
Online applicants could even receive their number the same day if all goes well, so it can certainly be worth considering reaching out to the IRS online if you’re looking to get an EIN number sooner rather than later. Applying via phone can also be done within a day, as long as you can identify your business and get all the necessary information taken care of without any hiccups. Also, those who go by fax often find that it takes about four days to process an application.
How much does it cost to get an EIN number?
Almost any business owner who needs an EIN number can apply for one free of charge. However, considering how important the EIN number can be for companies across the United States, it is good to know that you can get support from a professional company that handles the whole process on your behalf to get the application finalized quickly and easily.
How to find my EIN number
Aside from applying, you can also call the IRS if you’ve lost your EIN number. It can sometimes occur when you choose to apply through fax or mail since there’s a chance that it can get lost along the way. Some may misplace it and don’t know where to look. Fortunately, it’s possible to get an EIN number back without much hassle.
You don’t have to go through the IRS to find it – you could find it on your confirmation letter. If you’re not sure where that is, you could potentially find it on your business or tax documents.
While it’s best to avoid losing your EIN number in any way possible, there are procedures in place by the IRS to help those who misplace their numbers. Thanks to this, losing your EIN doesn’t need to cause you too much grief (in any case, you’ll want to find ways to keep it safe to prevent this from happening).
Let Workhy help you start your business
There is nothing to worry about for those who are unsure how to take care of the necessary processes when setting up their business. Here at Workhy, we can help you go through all the stages of starting a business, from getting an EIN number to digitally storing all your business-related documents, including this one. So you won’t have to be concerned about losing them. All in all, if you want to get some assistance, it could be well worth taking a look into the services we offer.