What Is an Employer Identification Nuꦇmber (EIN)?

The term "employer identification number" (EIN) refers to a unique identifier that is assigned to a business entity. It's provided to a company by the Internal Revenue Service (IRS), and it is used to identify the company on specific types of documents such as tax filings. Businesses can apply for EINs directly with the IRS, which usually issues them immediately.

Understanding the EIN

EINs are issued to identify business entities in the United States in the same way that 澳洲幸运5开奖号码历史查询:Social Security numbers (SSNs) are used to identify individuals. The EIN is also known as a🌠 Federal Tax Identification Number.

EINs are unique nine-digit numbers that are formatted as XX-XXXXXXX and, as noted above, are issued by the IRS. The agency uses them to identify 澳洲幸运5开奖号码历史查询:taxpayers who are required to file various business 澳洲幸运5开奖号码历史查询:tax returns.

EINs are unique to the businesses to which they are assigned. They never expire, and the same number set is never reissued to another business, even if the original employer goes out of business.

Business enti💦ties must apply for an EIN before they can begin operations.

The types of businesses and other enti🦹ties that a෴re issued EINs include:

• 澳洲幸运5开奖号码历史查询:Limited liability companies (LLCs)
• 澳洲幸运5开奖号码历史查询:Sole proprietorships
• Non-profit organizations (NPOs)
• Government agencies
• Corporations
• Personal service corporations
• 澳洲幸运5开奖号码历史查询:S corporations
• Partnerships
• Churches and church-controlled organizations
• Plan administrators
• Military entities
• Government entities
• Farmers' cooperatives
• Indian tribal governments and enterprises
• Real Estate Mortgage Investment Conduit (REMIC)
• Estates
• Trusts

The IRS is not biased toward the size of the company. This means that even those with only one employee are just as eligible for an EIN as 澳洲幸运5开奖号码历史查询:multinational corporations.

Criteria for an EIN

澳😼洲幸运5开奖号码历史查询: A business or other entity needs an EIN if it:

• Has any employees
• Operates as a corporation or a partnership
• Files employment, excise, or alcohol, tobacco, and firearms tax returns
• Withhold taxes on income other than wages paid to non-resident aliens
• Has a Keogh plan
• Is involved with a number of types of organizations including but not limited to trusts, estates, and non-profits

How to Get an EIN

Applying for an EIN costs nothing and can be done by phone (for those who aren't in the U.S. but will do business in the country), fax, mail, or online. The process is fairly easy and uncomplicated.

Applicants must fill out Form SS-4: Appli༒cation for Employer Identification Number, which is available on the IRS .

The IRS requires that the following information be included on the application: the name of the company's principal officer, grantor, general partner, trustor, owner, or any other title, along with their personal taxpayer identification number.

Other in🗹formation tha♛t must be included on the form is:

• The type of entity
• The reasons for applying (new business, change of organization, IRS withholding requirement compliance)
• The start or acquisition date
• The principal industry of business

A business must be located in the U.S. or U.S. territories to apply for an EIN online. Once the online information is validated, an EIN is assigned immediately.

Benefits of an EIN

The main advantage of getting an EIN is being able to operate your business. You can't run it without it. You must apply for an EIN before you even get started.

澳洲幸运5开奖号码历史查询: With an EIN you can:

• Hire and pay employees
• Open bank accounts, obtain credit, and invest surplus cash
• Maintain corporate shields
• File business taxes and register state taxes

Another benefit of an EIN is that it keeps your 澳洲幸运5开奖号码历史查询:personal finances separate from those of your business. This can be especially beneficial to self-employed individuals (such as 澳洲幸运5开奖号码历史查询:subcontractors) who must provide an identification number for tax reportingꩵ purposes to those who hire them.

While they aren't required to have an EIN, they can still get one and use it instead of their Social Security number.

This can protect their personal information from unscrupulous parties seeking their personal details for 澳洲幸运5开奖号码历史查询:identity theft and financial gain.

Closing Your EIN

Once you are assigned an EIN, it is forever associated with you and your c♍ompany. The 🔯IRS officially can never cancel an EIN.

An EIN plays a critical part in required financial and tax reporting. Yet even if an entity never files a return, the EIN is still associated with it and can be used at🦩 a later time.

If you do recei♎ve an identification number but later decide the number is not needed, or if you close your business, the IRS can deactivate your associated business account.

This is often the case for startup companies that never launch. A𒅌 letter indicating the legal name, business address, EIN number, EIN assignment notice (if available), and reason for the account closure must be mailed to the IRS.

The EIN will remain; only the IRS business account will be suspended.

EIN vs. Taxpayer Identification Number (TIN)

A "澳洲幸运5开奖号码历史查询:Tax Identification Number (TIN)" is a broad term used to ♒describe any type of identification ൲number.

It's a generic descriptor for an assortment of numbers that can be used on a tax form including but not limited to:

• EIN
• SSN
• ITIN (Individual Taxpayer Identification Number)
• ATIN (Taxpayer Identification Number for Pending U.S. Adoptions)
• PTIN (Preparer Taxpayer Identification Number)

Depending on the particular taxpayer, the EIN may or may not be the TIN used by the IRS. For an employee, the TIN is usually their Social Security nu🍸mber.

For 澳洲幸运5开奖号码历史查询:corporations, partnerships, trusts, and estates, it's typically an EIN.

The Bottom Line

An EIN is a unique nine-digit number that is assigned to a business entity by the IRS and must be obtained before it begins o♔perati💫ng.

Most businesses will need an EIN to report taxes and for oth🧔er financial purposes. To request an EIN, fill out Form SS-4, available on the IRS website.