HOW TO GET A TAX ID FOR A COMPANY (EIN)
The EIN or Employer Identification Number is a nine-digit number that the Internal Revenue Service (IRS) assigns to businesses to identify them when they file their annual tax returns.
The EIN is also known as the IRS tax ID but both names refer specifically to identification number that the IRS uses to ensure administrative flexibility in the collection of federal taxes that all businesses entities are required to pay.
Obtaining a tax identification number is not a very complex task and can be applied for through the IRS’s website by filling out the form provided online. The form will require you to provide details about your business, its ownership, and other financial information.
To apply for and obtain an EIN, your business would need to be located within the jurisdiction of the IRS, and once the IRS has approved your application, it will assign your company its EIN.
The EIN is not a private number. Thus, most companies openly provide this number in their financial filings to establish their respectability as taxpayers.
Once an EIN is assigned it will remain until the company no longer ceases to exist. No two companies will have the same EIN, and thus the IRS does not have to worry about overlapping identification numbers.
To obtain an EIN online, you will first need a valid Taxpayer Identification Number, which shows the IRS that you are a current US taxpayer.
Once you finish reading the requisite instructions on the IRS website, you can determine the category that you are applying under to obtain an EIN, and can begin the application process.
The application must be completed in a single sitting cannot be saved and finished at a later time. If the application is left idle for more than 15 minutes in a single sitting, the form will delete itself, and you will have to start over.
When you begin filling out the application, you must have all of the necessary information at hand. Any submittal of fraudulent information could lead to prosecution by the IRS, which can potentially land you in prison and with exorbitant fines.
Once the IRS has confirmed that all of your provided information is correct, they will provide you with your EIN, which will now allow you to conduct all of your business’s tax operations.
For more information about the EIN, read Tax ID – Employment Identification Number (EIN).