Number (EIN) Explained – Mystery Solved!
A Powerful Way to Add
Credibility to Your Business.
Employer Identification Number (EIN), Federal ID Number or Tax ID
Number (TIN) is used to identify a business
entity. Each business entity has a unique EIN. One way to look at an EIN
is like a Social Security Number (SSN) for a business. An EIN is one of
two primary Taxpayer Identification Numbers (TIN); the other is a Social
In our experience, third parties including vendors, customers and other
partners perceive that you and your business have greater credibility and
are more professional when you have an EIN. We use our EIN on our customer
invoices; we believe that this says we comply with the law and will
declare the sales revenue you pay us.
EIN is a nine-digit number that IRS assigns in the following format: XX-XXXXXXX.
EIN is used to identify the tax accounts of employers and certain others
who don’t have employees. However, for employee plans an alpha (for
example, P) or the plan number may follow the EIN.
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File for your EIN today.
You need an EIN when you. . .
• Have employees.
• Operate your business as a corporation or a partnership.
•File any of these tax returns: Employment, Excise, or Alcohol,
Tobacco and Firearms.
• Withhold taxes on income, other than wages, paid to a non-resident
• Have a Keogh plan.
• Involved with any of the following types of organizations:
• Trusts, except certain grantor-owned
revocable trusts, IRAs, Exempt Organization Business Income Tax
• Real estate mortgage investment conduits
• Non-profit organizations
• Farmers' cooperatives, and
• Plan administrators (this typically applies to pension and other
employee benefit plans).
How the IRS Uses Your EIN: The IRS uses EINs to identify taxpayers that
are required to file various business tax returns.
Employers, sole proprietors, corporations, partnerships, non-profit
associations, trusts, estates of decedents, government agencies, certain
individuals, and other business entities use EINs.
In particular, EINs help ensure that a taxpayer’s information gets
properly routed to their files and records and the IRS (Internal Revenue
Service) and other taxing authorities properly apply payments to the
taxpayer’s account and issue refunds to the right taxpayer.
Be sure to use your EIN on all of the items that you send to the IRS
and the Social Security Administration.
EIN becomes your permanent number for your business, similar
to your Social Security Number and you can use your EIN immediately for
most of your business needs including: opening a bank account; applying
for business licenses; and filing a tax return by mail.
Timing of New EINs and Effective Dates. Even though The Small Business Advisors can usually obtain your new EIN in just ten (10) minutes and the
EIN becomes effective immediately, it often takes the IRS up to two weeks
before your EIN becomes part of the IRS’ permanent records.
In other words, it takes time for the IRS to work your [a new] EIN through
the IRS’ systems, records and databases. So, be sure to leave ample time
(advance notice) before you file an electronic tax return, make an
electronic payment to the IRS or pass an IRS Taxpayer Identification
Number matching program.
With just a few clicks and supplying some key information, The Small Business Advisors can obtain an Employer Identification Number (EIN) right away,
usually within 10 minutes. Then you’re ready to go.
Click Here to Get Started!