You may have heard the phrase “EIN” if you’re forming a new nonprofit organization or business in the United States. Employer Identification Number, or EIN, is a special nine-digit number allotted to your business by the IRS for tax purposes. This article will define EIN, discuss when you might need one, and describe how to apply for one.
As previously stated, an EIN is a special nine-digit number given out by the IRS for tax-related purposes. A Federal Tax Identification Number (TIN) is another name for it. When you submit tax returns, make payments, and engage with the IRS, you must use your organization’s EIN to identify it. Every company, nonprofit, and other category of entity that employs people or pays taxes is obliged to have an EIN. Why do you require an EIN?
You require an EIN for a number of reasons. First, in order to report employment taxes to the IRS, you must have an EIN if you have employees. Second, even if you’re a sole proprietor and are required to submit some tax returns, including excise tax or the alcohol, tobacco, and guns tax, you might still need an EIN. Third, opening a business bank account, requesting business licenses and permits, and filing tax reports all require an EIN if you’re a new firm. Does the cost of an EIN number apply?
No, getting an EIN is cost-free. Free EIN applications are available online, via mail, by fax, and by phone. Sites from third parties who promise to apply for an EIN on your behalf and charge a fee should be avoided. Although these websites may be credible, the IRS is not connected to them.
The IRS EIN is available to the public, yes. The owners, officers, and authorized representatives of the organization are the only people to whom the IRS is permitted to divulge EIN information. Some websites, like the SEC’s EDGAR database, allow the general public access to EIN information, albeit they do not always include the complete EIN number. The IRS EIN is a public document, right?
IRS EIN is public information, yes. However, as was already noted, the general public is not given access to the complete EIN number. The lender or grantor may ask for your EIN if you’re submitting an application for a business loan or grant. In this situation, they could check public data to confirm your EIN. Where can I find my EIN certificate to print it?
After obtaining your EIN, the IRS will send you a letter confirming it. Your EIN certificate is contained in this mail. If necessary, you can print a copy of your EIN certificate by downloading the PDF of the confirmation letter from the IRS website and doing so. For a copy of your EIN confirmation letter via mail, you can also call the IRS Business and Specialty Tax Line at 800-829-4933.
A letter from the Internal Revenue Service (IRS) confirming the granting of an Employer Identification Number (EIN) to a company or other organization is known as an EIN confirmation letter. Typically, it contains the EIN, the company’s legal name, and the date the EIN was assigned. Banks, governmental bodies, or other organizations can need this letter as evidence of the company’s legitimacy.