How To Apply For An EIN Number Quickly
When a business owner chooses to apply for an EIN (employer identification number), they improve their position as an employer. After all, business owners need employer identification numbers in order to file taxes for their companies. The IRS does not recognize employers without EINs as business owners. Moreover, you cannot register as a business entity or receive business loans without an EIN. Banks also require employers to disclose their EINs in order to open up business bank accounts. If you want to secure your finances and open up more financial opportunities, you need to obtain an EIN. Read this post to learn how to apply for an EIN efficiently.
Determine If You Need An EIN
The first step to take before you apply for an EIN is to determine if you actually need one or not. As previously stated, you need an employer identification number if you wish to open a bank account for your business or obtain a business loan. However, if you do not have employees at the moment, you do not need an EIN by law. Only partnerships, corporations and LLCs that submit taxes as partnerships or corporations need EINs. If you want to receive tax returns, the IRS requires you to have an EIN. Moreover, if you want to involve your company with trusts, estates or nonprofits, you need to get an EIN. Use these specifics to determine if you need an EIN. If you do, proceed to the following steps of the application process.
Review Relevant Forms
If you decide that you need an employer identification number, review the relevant forms before beginning your application. You can find a PDF version of the form, known as Form SS-4: Application for Employer Identification Number, online. While reviewing the form, gather all of the necessary information and expedite the process if you know what information you need. This information includes names, addresses and your social security number. If you have all of these pieces of information handy when you begin the process, you can complete your application quickly. Since the IRS can take a while to grant you an EIN, speeding up the process is a crucial step when applying for one.
Check Your Eligibility
Another crucial step is to check your eligibility before you apply for an EIN. Your eligibility depends on a variety of factors. For instance, your business needs to be located in the United States in order to apply online. Similarly, you need to have a valid taxpayer identification number (SSN) to apply online. Understand that you can only apply for one EIN in one day. If you are eligible, you can apply immediately so that you can receive your EIN as quickly as possible.
Choose A Way To Apply
Once you complete the pre-application steps, you need to choose how you want to apply for an EIN. One of the most popular ways is to apply online directly or through a third party that facilitates getting an EIN on your behalf. Often times, an EIN request service is faster and easier to work with compared to the IRS. However, there are other options including by mail, by fax and by phone. Depending on your time and resources, determine which way provides you with the fastest solution. Then, proceed to apply for an EIN.
Prepare Your Information Beforehand
Lastly, fill out the EIN application by hand before applying for an EIN on any platform. Then, you can avoid running into any issues. For instance, business owners who apply online need to do so within one session and within the time provided. When employers fail to finish their applications in 15 minutes, they lose all of the information they already inputted. The IRS website does not save changes you have made once you exit out of the session. If you already have your answers to questions in front of you, you avoid having to repeat the process over and over again. Thus, this is a critical step to take when applying for an EIN and starting a business.
You need to apply for an EIN if you want to take your business to new heights. To start, determine whether you need an employer identification number in the first place. If you decide that you do need an EIN for your business, review the relevent forms via an available PDF version online. Check your eligibility to avoid wasting time filling out the form when you cannot even send it in. Consider the different application options and choose one that will expedite the process. Finally, fill out your information before beginning the application on any platform to prevent having to re-do the process multiple times. Take these steps to efficiently apply for an EIN.
