The EIN or Employer Identity Number is a unique nine-digit fingerprint of your business. It is usually used when reporting taxes on your company’s employment. You can apply for EIN online, as well as by mail or phone. Regardless of the type of your business, you need to have your own EIN as long as you have employees.
An EIN works similarly to the personal Tax ID Number (TIN). This will be your unique number to be used for legalities, contracts or financial transactions.
Filing the EIN
If you are starting a business, filing the EIN should be the first on your list for federal tax purposes. In theory, because you can apply for EIN online, the process is supposed to be straightforward.
However, if you find the process as too much of a hassle or confusing due to the paperwork and requirements, you can always reach out to third-party service providers such as GovDocFiling.com. The company will help simplify the process for you.
In obtaining your EIN, here’s what you need to do: (1) Choose the business entity you want, (2) Fill out the SS-4 form, and (3) submit the one-time federal filing fee.
Within an hour of processing, GovDocFiling will process your EIN application accurately. You can expect your Tax ID via email within the day.
You can immediately use the Tax ID to open a bank account under your company’s name. You can apply for loans, business permit, and file your income tax returns. But keep in mind that banks do not have the same requirements. Some might require you a letter from IRS which can take four weeks to arrive.
To make it clearer between Tax ID and EIN, Tax ID is used to identify your business, while the EIN is used for the purpose of employment tax reporting. Other than the two mentioned, these numbers can’t be used for other purposes.
GovDocFiling.com is a paid third-party assistance group that can help you with EIN application processes. It’s not affiliated with the government.