How Do I Obtain My EIN Number?
With tax season a few months away, you want to ensure that your new business is properly registered before you file your taxes. If you have recently started a business, or changed the nature of your business, you’ll need an EIN number, or Employer Identification Number. Here is what you need to know about the EIN application process:
Who Needs an EIN?: Most businesses require an EIN number. If you are starting a business and plan to hire employees, an EIN is required by law. Even individuals who are the sole owners and employers of their business may choose to obtain an EIN number for tax purposes. For instance, if you are changing your company type and you are switching from a partnership to a corporation, you’ll need a new EIN number.
How to File For an EIN: The easiest way to file for an EIN is to complete the EIN form online. When you apply for an EIN online, you can get plenty of help with questions and expect a quick turnaround time. You also have the option of submitting your paperwork through fax or mail. However, mailed or faxed forms will take several weeks to process, and it will take up to two weeks for your reply to arrive in the mail.
When to File: Obtaining an EIN is one of the first things that you should do for your business. If you do not yet have your EIN, it is recommended to file it as early as possible before tax season. After your form is filed and approved, it will take several weeks to be processed by the IRS. The earlier you file, the less you have to worry about for the upcoming tax season.
Once you obtain an EIN, you can use that number every year to file your taxes, which is why you should keep a record of your EIN in a secure location.