The Employer Identification Number (EIN) is a nine-digit number assigned by the IRS. The IRS uses the number to identify taxpayers who are required to file various business tax returns. And to identify the tax accounts of employers and certain others who have no employees.
The EIN, is commonly known as a Tax ID number, it’s obtain by filing form SS-4 with the Internal Revenue Service (IRS). All businesses are required by federal law to have an EIN.
In tax law, a business is considered a legal person. So having an EIN is required to separate you the individual from the business.
Most bank will not open a business account without EIN. You’ll also need it when applying for business credit, paying employment wages or doing business with other businesses, preparing and filing quarterly or annual tax business tax returns, or for filling out W9 forms for clients if you’re running a service provider business.
A Single-member LLC with minimal accounting needs, won’t necessarily need to file for an EIN, you could just use your personal Social Security Number for tax purposes and for receiving payments from clients. But generally speaking, if your business is a sole proprietorship with no employees and not a separate legal entity, you won’t need an EIN.
However, it’s recommended by business accountants, that even if you’re running the simplest business, it would be highly beneficial to have and use an EIN; Which what separates you, the individual from the business entity itself.
LLC taxed as a Corporation: If your LLC chooses to be taxed as a Corporation.
LLC electing S-Corporation status: will need to get an EIN for tax purposes.
Multiple-member LLCs: will need an EIN, for this entity type, even if you don’t have employees.
Single-member LLCs: If you’re considering hiring in the near future (within 12 months), you’ll need an EIN. Single-member LLC without employees, should get one, even if you’re using your own Social Security Number for tax purposes, it’s highly recommended you obtain an EIN.
Sole proprietorship with employees: Even if you do not have an LLC or any other legal entity for your business and you run a simple sole proprietorship, you still need to get an EIN, if you have employees or plan on hire employees in the next 12 months.
Partnerships: an EIN is required for all general partnerships and limited partnerships.
The IRS requires a physical address in order to issue an Employer Identification Number (EIN / Tax ID Number) to your company. However, the address will not be listed public under any circumstance.
The IRS requires accurate information on at least one person; A principal officer or the owner of the business.
Your personal social security number.
Your real physical mailing address.
The business address (no P.O. Box number).
A contact number and email address. (We can use ours)
You MUST ensure that the requested information being provided is accurately, to guarantee that your order is not delayed. And the name being provided should be spelled out exactly as it appears on the social security card.
RCA will help you to attain your federal EIN; you provide the specifics to us, and our experts will handle the paperwork of electronically filing Form SS-4 with the IRS. And you’ll have your EIN back in a flash. Then the document with your new Tax ID number, will be uploaded to your dashboard and you’ll be automatically notified via email within one business day.