Obtaining a Tax ID (EIN) Number is very important for the beginning of a sole proprietorship. You want to comply with the IRS early on in existence and get ahead of tax return filings and such. Understanding the EIN application process is crucial to the start of the sole proprietorship.
- Prepare Mandatory Business Information
- Apply for a Sole Proprietorship Tax ID (EIN) Number Online
- Apply for a Sole Proprietorship Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Sole Proprietorship?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Sole Proprietorship?
- Why Do I Need a Tax ID (EIN) Number for my Sole Proprietorship?
The first step in obtaining a Tax ID (EIN) Number for your sole proprietorship is to prepare all of the mandatory business information. With the information in hand, you can move forward with the full application process. The application process will involve you choosing the mechanism to apply, and getting all of the data together to fill in the details. The biggest piece of information you need in terms of mandatory business information is that of the responsible party.
The naming of the responsible party is integral to the Tax ID (EIN) Number application process. The responsible party needs to be someone with a Social Security Number or ITIN. It also has to be an individual, rather than an entity. The responsible party is the individual with the authority to make decisions on behalf of the company.
You also need information pertaining to the business in general, including the principal address and such. Knowledge of the industry in which the sole proprietorship operates is also helpful information. Gathering up all of this data lets you easily get through the online application, no matter how you apply.
The online application process for a Tax ID (EIN) Number for your sole proprietorship is the easiest path to obtaining the nine-digit unique identifier. The online application process is something that only requires you to have an internet-enabled device, such as a laptop, desktop, or even a tablet. The online application form is something you can access right on the Internal Revenue Service site.
Once you get to the online application form, it is a matter of taking all of the information you have and starting to input it into the appropriate fields. The information you enter will include details of the responsible party, the business information, etc. Entering all of the information allows you to submit to the Internal Revenue Service for near immediate processing.
Once the Internal Revenue Service obtains the online application, they will go through a validation process and send you back the nine-digit Tax ID (EIN) Number for the sole proprietorship near instantly.
As a sole proprietorship, you also have the option to apply for a Tax ID (EIN) Number through a traditional mail method, or through fax. Either way, you are going to be printing out the SS-4 EIN (Tax ID) application for you to complete in full.
When you are applying through the mail, you need to gather up all of the mandatory business information. With the information in hand, you can then start to populate the form, the SS-4 EIN (Tax ID) Application. When you have it complete in full you will have to put it into an envelope. You want to address it to the Internal Revenue Service and also put proper postage. You will then mail it to the Internal Revenue Service for processing. After they process the application they will mail you back the unique nine-digit Tax ID (EIN) Number for the sole proprietorship.
The fax application method and the mail method are extremely similar. For both of those methods, you need the paper application, the form SS-4 to complete in full. You will then fax it over to the Internal Revenue Service for processing. Once they do the processing they will be returning to you a complete form, through the fax, with the Tax ID (EIN) Number on it.
You can obtain a Tax ID (EIN) number for the sole proprietorship by completing the SS-4 EIN (Tax ID) Application. The manner in which you complete the application is what will vary. You can apply with the online application method, completing it virtually with a laptop, desktop, or similar device. You also have the ability to apply via the mail, or with a fax machine. If none of those work, the telephone method exists as well as you can call and apply to the IRS that way.
The length of time to obtain the Tax ID (EIN) Number for your sole proprietorship will depend on the manner in which you apply. If you apply with the online application method, you will have the number back to you and in-hand in a matter of minutes. The fax method will require more time, taking a few business days for full processing. The mail application method will take a few weeks before you have it complete and in-hand, back to you.
You need a Tax ID Number for the sole proprietorship for all of your tax reporting purposes. When you are applying for the Tax ID (EIN) Number, you will have the number for when it comes time to file your tax returns. You will also need the number to open bank accounts in the name of the business, loans, etc.
You need to have a good handle on requirements to obtain a Tax ID (EIN) Number as a sole proprietorship. Do your homework and know what is necessary for information, what you need to document, and how best you can apply. Use the online method or similar processes to ensure you get your Tax ID (EIN) Number timely.