You are required to get a Tax ID (EIN) Number for your small business to comply with the Internal Revenue Service. The Internal Revenue Service requires the Tax ID (EIN) Number to properly report taxes, open up business related banking accounts and loans, and to adequately report and process payroll taxes.
- Prepare Owner Information
- Apply for a Tax ID (EIN) Number for a Small Business Online
- Apply for a Tax ID (EIN) Number for a Small Business via Mail or Fax
- Why Do I Need a Tax ID (EIN) Number for a Small Business?
- How Do I Get a Tax ID (EIN) Number for a Small Business?
- How Long Does it Take to Get a Tax ID (EIN) Number for a Small Business?
You need to prepare all the owner information when you apply for a Tax ID (EIN) Number for a small business. The owner information is going to entail the naming of what is known as the responsible party in the eyes of the Internal Revenue Service. You also need details such as the principal address of the business, industry of the small business, and so on.
The responsible party is a requirement to be an individual and not an entity. The naming of the responsible party is important as the role carries significance. It is the responsible party of the small business that manages and controls the assets. This individual, in the event there is a question from the Internal Revenue Service, will be who they reach out to for answers, for business representation. You need a Social Security Number of similar national identity to be a responsible party as well. The Internal Revenue Service makes sure the detail of the responsible party is accurate before providing the unique nine-digit Tax ID (EIN) Number.
The Internal Revenue Service continues to try and make it as easy as possible to obtain a Tax ID (EIN) Number for your small business. When it is time to go through with the application, you should see if using the online application form makes sense for you. The online EIN number application form is the same as the paper form, only you can do it on the web with a variety of devices.
Accessing the online application for a Tax ID (EIN) Number is something you should accomplish with a laptop or desktop. You usually can use a tablet as well as specific types of phones and their web browsers to go through the application process. When you complete it, you submit the details to the IRS for validation.
The validation process for a Tax ID (EIN) Number via online application is speedy as the Internal Revenue Service confirms information about the responsible party and such. Once they validate everything, they return to you the nine-digit Tax ID (EIN) Number.
You also have the ability to apply for a Tax ID (EIN) Number for a small business with two other mechanisms. The ways you can apply, outside of the online application, including applying through the mail or with the assistance of fax technology.
The mail method is the original way to obtain a nine-digit and unique Tax ID (EIN) Number through the Internal Revenue Service. When you apply through the mail, you are printing out the application form and filling it in completely. You can use a PDF type software to fill it in on the computer before printing it out or use a pen to put in all the details. Once you complete the form, you are mailing it to the Internal Revenue Service in an envelope with the appropriate postage.
The fax form of applying for a Tax ID (EIN) Number is also something to consider. Applying for a Tax ID (EIN) Number through fax will have you, again, printing out and filling the paper application in completely. You need all the details on the form before you go to the fax machine. Once you set up the fax machine with the appropriate Internal Revenue Service fax line, send it off to them. You will get a receipt back confirming the fax went through and they will process appropriately.
You need to obtain a Tax ID (EIN) Number for a small business for a variety of reasons. It all comes down to the ability of the Internal Revenue Service to do tracking of all business activity you take on. With the tax identification number, you are going to give the IRS insight into what you are doing as a business, where revenue is coming from, etc.
The Internal Revenue Service requires a Tax ID (EIN) Number for tax reporting purposes and to file a small business tax return. You will also need the Tax ID (EIN) Number to do any type of business banking, including opening up business checking accounts, taking out business loans, etc.
You can get a Tax ID (EIN) Number for your small business using any of the application methods we laid out above. The online application method is there and is arguably the quickest and easiest way to apply for everything front to back. You can also apply via fax, as well as through the mail. Those will take longer, but you will be able to get the IRS to send you back the nine-digit Tax ID (EIN) Number in the end as you would if you applied via online.
The length of time it takes to get a Tax ID (EIN) Number for your small business will vary on the way you apply. If you apply via the online method, you will have a Tax ID (EIN) Number back to you in a matter of minutes. Applying through the fax method will take several business days while applying via mail will take a few weeks in total from start to finish.
The process to get a Tax ID (EIN) Number for a small business is easy with the online application process. Get your information in order before applying and you should have no issues at all. The fax and mail methods also exist. In the even, you will reach your goal of obtaining the Tax ID (EIN) Number timely.