{"id":1240,"date":"2020-10-26T10:33:12","date_gmt":"2020-10-26T10:33:12","guid":{"rendered":"https:\/\/www.tax2efile.com\/blog\/?p=1240"},"modified":"2024-11-21T10:26:57","modified_gmt":"2024-11-21T10:26:57","slug":"how-to-apply-an-ein-for-small-business","status":"publish","type":"post","link":"https:\/\/www.tax2efile.com\/blog\/how-to-apply-an-ein-for-small-business\/","title":{"rendered":"What is an EIN and How to Apply for Small Business?"},"content":{"rendered":"<p id=\"E171\"><span id=\"E172\" class=\"qowt-font6-Arial\">EIN- Employer Identification Number is a unique 9 digit number that helps in identifying the business for the purpose of taxation. This EIN is issued by the IRS for the businesses. Every business owner even if it is a small business, is expected to open a business bank account, get business licenses, and file their respective tax returns. <\/span><\/p>\n<p id=\"E173\"><span id=\"E174\" class=\"qowt-font6-Arial\">While implementing the above process, there will be no delays in obtaining the licenses or financing to operate the business. <\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/how-to-apply-an-ein-for-small-business\/#What_is_an_EIN\" >What is an EIN?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/how-to-apply-an-ein-for-small-business\/#How_to_Apply_for_an_EIN\" >How to Apply for an EIN?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/how-to-apply-an-ein-for-small-business\/#When_you_need_an_EIN\" >When you need an EIN?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\r\n<h2 id=\"E175\"><span class=\"ez-toc-section\" id=\"What_is_an_EIN\"><\/span><span id=\"E176\" class=\"qowt-font6-Arial\">What is an <\/span><span id=\"E177\" class=\"qowt-font6-Arial\">EIN?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p id=\"E178\"><span id=\"E179\" class=\"qowt-font6-Arial\">An EIN is required by any business that has employees to serve them. EIN is also required when the business is operated as a partnership or corporation. <\/span><\/p>\n<p id=\"E180\"><span id=\"E181\" class=\"qowt-font6-Arial\">Are you confused about whether you need to apply for the EIN or not? Then check the <\/span><a id=\"E182\" contenteditable=\"false\" href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/do-you-need-an-ein\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"broken_link\"><span id=\"E183\" class=\"qowt-font6-Arial qowt-stl-Hyperlink\">link from IRS<\/span><\/a><span id=\"E184\" class=\"qowt-font6-Arial\">. If any of the answers for the given questions in the link is \u201cyes\u201d then you must apply for a new EIN.<\/span><\/p>\n<h3 id=\"E185\"><span class=\"ez-toc-section\" id=\"How_to_Apply_for_an_EIN\"><\/span><span id=\"E186\" class=\"qowt-font6-Arial\">How to Apply for an EIN?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p id=\"E187\"><span id=\"E188\" class=\"qowt-font6-Arial\">As a business owner, you can apply for the EIN very easily; to do that, you can simply go to the <\/span><span id=\"E190\" class=\"qowt-font6-Arial qowt-stl-Hyperlink\">IRS EIN<\/span><span id=\"E191\" class=\"qowt-font6-Arial qowt-stl-Hyperlink\"> Assistant<\/span><span id=\"E192\" class=\"qowt-font6-Arial qowt-stl-Hyperlink\"> online link<\/span><span id=\"E193\" class=\"qowt-font6-Arial\">. Just fill the required information in the EIN Assistant link, complete, validate, and submit to the IRS. On successful completion, you can receive the EIN at no charge for the service. <\/span><\/p>\n<p id=\"E194\"><span id=\"E195\" class=\"qowt-font6-Arial\">The EIN can also be requested through mail or fax. When you operate your business outside the U.S. you cannot apply EIN through this method. Instead, you can place a call at <\/span><span id=\"E196\" class=\"qowt-font7-Helvetica\">267-941-1099,<\/span><span id=\"E197\" class=\"qowt-font6-Arial\"> from 6 a.m. to 11 p.m. Monday to Friday. <\/span><\/p>\n<h3 id=\"E198\"><span class=\"ez-toc-section\" id=\"When_you_need_an_EIN\"><\/span><span id=\"E199\" class=\"qowt-font6-Arial\">When you need an EIN?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p id=\"E200\"><span id=\"E201\" class=\"qowt-font6-Arial\">According to the IRS, when any one of the following criteria matches with your business model, then your business should need an EIN:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li id=\"E202\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E203\" class=\"qowt-font6-Arial\">When the business has employees<\/span><\/li>\n<li id=\"E204\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E205\" class=\"qowt-font6-Arial\">When the business or the company you own is a corporation or a partnership.<\/span><\/li>\n<li id=\"E206\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E207\" class=\"qowt-font6-Arial\">When you have filed the tax returns for the following: employment, firearms, excise, tobacco, or alcohol.<\/span><\/li>\n<li id=\"E208\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E209\" class=\"qowt-font6-Arial\">You reserve the taxes towards the income paid to a non-resident alien.<\/span><\/li>\n<li id=\"E210\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E211\" class=\"qowt-font6-Arial\">Trusts, estates, grantor-owned revocable trusts, or IRAs.<\/span><\/li>\n<li id=\"E212\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E213\" class=\"qowt-font6-Arial\">Farmer\u2019s cooperatives.<\/span><\/li>\n<li id=\"E214\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E215\" class=\"qowt-font6-Arial\">on-profit organization.<\/span><\/li>\n<li id=\"E216\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E217\" class=\"qowt-font6-Arial\">Plan administrators.<\/span><\/li>\n<li id=\"E218\" class=\"qowt-li-2_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E219\" class=\"qowt-font6-Arial\">Real estate mortgage investment channels.<\/span><\/li>\n<li id=\"E220\"><span id=\"E221\" class=\"qowt-font6-Arial\">The business owner also needs the EIN for the following purposes:<\/span><\/li>\n<li id=\"E222\" class=\"qowt-li-1_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E223\" class=\"qowt-font6-Arial\">To open a business bank account.<\/span><\/li>\n<li id=\"E225\" class=\"qowt-li-1_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E226\" class=\"qowt-font6-Arial\">For applying credit cards for the purpose of your business.<\/span><\/li>\n<li id=\"E227\" class=\"qowt-li-1_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E228\" class=\"qowt-font6-Arial\">For applying for business permits.<\/span><\/li>\n<li id=\"E229\" class=\"qowt-li-1_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E230\" class=\"qowt-font6-Arial\">To obtain a business loan or business license.<\/span><\/li>\n<li id=\"E231\" class=\"qowt-li-1_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E232\" class=\"qowt-font6-Arial\">Provide non-dependent contractors with Form 1099.<\/span><\/li>\n<li id=\"E233\"><span id=\"E234\" class=\"qowt-font6-Arial\">Another important reason, why you need an EIN is to maintain your privacy. When you are working with a huge number of clients, exposing your SSN (Social Security Number) can lead to identity theft. You can avoid that by using the EIN.<\/span><\/li>\n<li id=\"E235\"><span id=\"E236\" class=\"qowt-font6-Arial\">When you no need an EIN?<\/span><\/li>\n<li id=\"E237\"><span id=\"E238\" class=\"qowt-font6-Arial\">According to the IRS, there are few cases where you no need an EIN. You no need a new EIN:<\/span><\/li>\n<li id=\"E239\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E240\" class=\"qowt-font6-Arial\">When there is a change in name of a small business.<\/span><\/li>\n<li id=\"E241\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E242\" class=\"qowt-font6-Arial\">When your partnership or corporation is bankrupted.<\/span><\/li>\n<li id=\"E243\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E244\" class=\"qowt-font6-Arial\">When the corporation is taxed as S corporation.<\/span><\/li>\n<li id=\"E245\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E246\" class=\"qowt-font6-Arial\">When there is a change in the business entity that is taxed on Form 8832.<\/span><\/li>\n<li id=\"E247\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E248\" class=\"qowt-font6-Arial\">When there is a change in the business location.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p id=\"E254\"><span id=\"E255\" class=\"qowt-font6-Arial\">The key point to remember is that obtain an EIN before you establish a new business, even if it is small. By doing so, it assists in financial and legal <\/span><span id=\"E256\" class=\"qowt-font6-Arial\">matters.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EIN- Employer Identification Number is a unique 9 digit number that helps in identifying the business for the purpose of taxation. This EIN is issued by the IRS for the businesses. Every business owner even if it is a small business, is expected to open a business bank account, get business licenses, and file their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[118],"tags":[],"class_list":["post-1240","post","type-post","status-publish","format-standard","hentry","category-truck-tax"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/1240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/comments?post=1240"}],"version-history":[{"count":1,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/1240\/revisions"}],"predecessor-version":[{"id":4638,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/1240\/revisions\/4638"}],"wp:attachment":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media?parent=1240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/categories?post=1240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/tags?post=1240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}