Applying for an Employer Identification Number (EIN)
Owning a business means paying taxes, in order to do that you will likely need an employer identification number. This is often described as being like a social security number for your business. It is how the IRS will identify your company. Not every business needs an EIN but most do. You can look on the IRS website to determine if your company needs one. The actual procedure to get one is not all that difficult and should not take very long at all.
The first thing to consider is do you even need an employer identification number? Based on the name you would assume that you would need one if you have employees, and you would be right. Any business with employees needs and
employer identification number. However there are a number of other businesses that also need one.
If your company is a corporation or if it is operated as a partnership you will need to get an id number.
You will also need one if you file a tax return for employees, an excise tax or alcohol, tobacco and firearms.
Except for very small sole proprietorship pretty much every business will need to get an employer identification number.
The easiest way to get an id number, and the way the IRS prefers that you do it is to simply go to their website and fill out the form there. If you have ever used the internet before you will have no trouble with this procedure, it is just a matter of picking the appropriate option in a drop down box. Before you start you are going to want to make sure that you have all of your company information with you, things like addresses, phone numbers and the like. You will also need your personal information including your social security number and if you are applying as a partnership that of your partner. Once you have completed the process your employer identification number will be generated right away, you should write it down and put it in a safe place. You also have the option of printing it off or you can choose to have it mailed to you.
For people who aren't that tech savvy or would just prefer not to fill out the form online there are other options for getting an EIN. You can contact the IRS by phone and the operator will fill out the form for you and then immediately provide you with your number over the phone, they will also mail you a copy. You can also apply by fax, however to do this you will need to get a copy of the application form which can be downloaded online, they are also available at IRS offices. You have a choice of receiving your new number by fax or by mail if you apply this way. The last option is to mail the form in, this will likely take a month to get your EIN. I know this is something a lot of entrepreneurs don't like to do, but keep in mind, it is one of those necessary dealings when starting a business, and there's no escaping that.