Employer Identification Number EIN Wex LII Legal Information Institute

An EIN is essentially like a Social Security number for your business. It’s a nine-digit identification code that allows the US government, state governments, other businesses, banks, and the IRS to identify your business for reporting and tax purposes. Read on to find out what an EIN number is, why you need it, and how ein number means to apply for an EIN.

Converting to a partnership or a limited liability company (LLC)

While all businesses are free to apply for an EIN, your business may not need to apply for an EIN or meet the minimum requirements. If you plan on hiring employees or if your business operates as a partnership or corporation, you will be legally required to register for an EIN. However, most businesses, even those without employees, will register for an EIN. Both EINs and TINs retained earnings are unique nine-digit numbers assigned to taxpayers and serve as official identifiers recognized by the IRS.

Multi-Member LLC or Partnerships

• The process takes several weeks due to the verification of documents and processing of the application.
• While all businesses are free to apply for an EIN, your business may not need to apply for an EIN or meet the minimum requirements.
• The responsible party can’t be a business; it must be a person.
• After you have received your EIN number it’s time to start gathering the necessary pieces to form an official business.
• An EIN will become your business’s permanent federal taxpayer identification number once it is assigned.
• An EIN is essentially like a Social Security number for your business.

It’s smart to download the confirmation letter and save it to your device. The IRS has an online “apply for an EIN” tool, which accepts applications Monday through Friday from 7 a.m. Be sure to have your Social Security number or Individual Taxpayer Identification Number (ITIN) handy before applying. We are an independent, advertising-supported comparison service.

Considerations When Applying for ITIN

The online application form can easily be completed and submitted electronically. Simply visit the IRS website and follow the application prompts. While the online application process is by the far the more convenient option, it does come with basic requirements. We provide detailed information and guidance on tax identification numbers and tax returns, helping our clients manage their tax obligations effectively. Applying for a tax identification number in the U.S. is usually free.

Before you apply

First, the IRS will typically email or send a physical letter confirming your EIN application. You Insurance Accounting can also check business documents such as tax returns to find your EIN printed there. If your business structure is a partnership or multi-member LLC, you are required to get an EIN number because the LLC must file a partnership return and provide K-1s to members of the LLC.

Check with your state’s business regulatory agency or Department of Revenue for specific requirements. But there are quite a few steps and quite a few pieces of information you will need to pull together for the application process. Let’s take a look at the whole EIN application process and the information you’ll need to supply.