There are many different methods for applying for an Employer’s Identification Number (EIN). However, the one we’ve liked the most is that easy and simplest “Online Application Method”. There are no complexities in it. Just a simple and quick process.
Nevertheless, if you are too much busy in your startup issues and do not want to mess up with step by step procedure to apply for an EIN, you can also hire any of the top LLC formation services from here. to let them done job for you in an affordable price.
The online application for EIN requires you to follow the simple steps discussed further in this article. However, before jumping to them, let’s first determine whether you do really need an EIN or not. Because if it is something you don’t need an EIN for, then there is no need to go through the whole hectic process.
When You Require an EIN
If you or your business is going through following business events, then you really should apply for an EIN:
- To hire employees for you company
- Planning for 401(k) retirement Plan.
- Operating your business as a partnership or corporation
- If your business is involved with any kind of trusts, estates, real estate mortgages, farmer cooperatives, etc.
- If you are going to buy or inherit an existing business
- When you are going to form an LLC.
- When you want to file for bankruptcy
When You Don’t Require an EIN
There are circumstances when you might think that you require an EIN but in actually, there is no need at all. Let’s have a look at the list of events when you don’t require an EIN:
- When giving your business a new name or changing its existing name
- If you are ending your partnership
- If you change your business’s location
- When your c- corporation or LLC choses to be taxed as S-corporation
- When you already have an existing EIN of former business
Steps to Apply for an EIN
Now, to apply for a new EIN, you’ll have to follow these simple 9 steps.
Read More: How to Get the Right Attorney for Your Startup Business
Step 1: Visit the Internal Revenue Services (IRS) Official Website
To begin with the process, you’ll have to visit the official website of Internal Revenue Service. At the bottom of the home page, you’ll see a button of “begin application” click it to proceed the process.
Step 2: Select the Structure of Your Business Entity
From the given options, choose the business structure of your company for which you want an EIN for whether it’s an LLC, non-profit corporation or C-corporation.
Step 3: Provide Your Business’s Members’ Data
If your business is an LLC or partnership, then you’ll be needed to provide the complete information of your business’s members including their names, addresses etc.
Step 4: Give the Purpose for EIN
After that, you’ll be asked to give the purpose for applying for a new EIN. State the reason, whether you want it to hire employees, file for bankruptcy or anything it is.
Step 5: Designate a Contact Person
If you are a lone owner of your business, then of course you’ll have to designate yourself as the responsible person. But if your business is formed on partnership, then you’ll have to give the contact info of one person you want to designate for receiving EIN.
Step 6: Provide the Physical Address for Your Business
Whether your business is an LLC or any other corporation, it must have a physical address, otherwise, you won’t be able to apply for EIN. So in the required space, provide them with the physical location of your business.
Step 7: Describe the Nature of Your Business
After that, you’ll have to state the nature of your business. Simply provide them with what your business does or what it is about, just for instance, if your business is related to clothe making, you’ll have put it in the given category of fashion and so on.
Step 8: Choose the Conformation Letter Method
Once all the above steps have been covered, now you’ll have to choose the method via which you want to receive your confirmation letter. Keep in mind that you are not going to receive it immediately, you’ll have to wait for some time for the process to be completed.
Step 9: Verify the process
In the end, you are required to verify the whole information you have inserted. Once verified, you can now send the application.
Takeaway
Once you have completed the process of applying for an EIN, you’ll receive your order within four weeks.
