Do I Need a Federal EIN

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is how the Internal Revenue Service identifies your business entity. You may apply for an EIN in several ways, the most convenient being online. Applying online for an EIN is a free service offered by the IRS on its website, where it devotes an entire page to application procedures and you can get your EIN immediately. If you prefer, you can also fax a completed Form SS-4 to the service center for your state or apply by mail.

According to the IRS, your business must have an EIN if any of these criteria apply to your business:

• You have employees;
• Your business operates as a corporation or a partnership;
• You withhold taxes on income other than wages paid to a nonresident alien;
• You have a Keogh Plan; or
• You’re involved with certain organizations listed on the IRS website.

Aside from filing taxes, you may also need an EIN in order to apply for business permits, open a bank account in the name of your business, apply for a credit card in the name of your business, or furnish independent contractors a Form 1099.

While applying for an EIN, the IRS requires that you disclose the name and taxpayer ID number (SSN, TIN, or EIN) of the person who is responsible for the business, such as the company’s principal owner, general partner, or grantor. Once an EIN is assigned, it belongs to the registered business. According to the IRS, even if the number is never used to file a federal tax return, it may not be reassigned to another business. Also, it will never be canceled, but the IRS will close the account upon request. It is possible that later the responsible party may re-open the account by writing to the IRS.

For more information, check out our Tax ID/EIN page or feel free to call us toll-free to help you with the filing process. To speak live with one of our Account Managers, call us at 1-888-595-2747.

For more information on how to start a business, please see 13 Steps to Starting a Business in California. 

Disclaimer:

SunDoc Filings is not a law firm.  The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.