What is an EIN?
An EIN (Employer Identification Number) is a 9-digit identification number issued by the IRS to US businesses. Its main use is filing your tax return and identifying your company to the authorities. It is the business equivalent of the Social Security Number, which individuals in the US use for identification almost everywhere. Banks, financial service providers, credit bureaus and other companies also often use the EIN as a unique identifier, for example to check a company's creditworthiness. Employers, corporations, partnerships, trusts and sole proprietors can request one, and so can certain individuals.
How long it takes to get an EIN
We apply for your Employer Identification Number online, by fax or by mail. Online applications are only possible if the manager or member responsible for the company has an SSN, ITIN or EIN and the company has its seat or business operations in the US. If the responsible person has none of these numbers, we apply by fax or by mail; international applicants can also apply to the IRS by phone.
Who is this service for?
This service is designed for clients who have formed a US company that has not yet been registered for tax. That is the exception, since most formation agencies also handle tax registration for your US company. But if, for whatever reason, it hasn't happened or your provider isn't making progress, we can apply for the EIN for you. It is important that no EIN has been applied for yet. If an application is already pending, or a tax ID has been issued but never reached you, a second application will only cause further delays. If in doubt, let us check with the IRS whether there really is no pending application, or whether you are simply waiting for your EIN to be recorded.
What is an EIN used for?
You will quickly find that in day-to-day business, the EIN is simply essential. You need it, for example, to file your company's tax return, to open a business account with the bank of your choice, or to obtain the business licenses you need. You also need the EIN to hire employees, and it helps you keep your personal transactions clearly separate from your company's.
What information is needed to apply?
To help you keep track of everything needed for the EIN application, here are the key points:
- The name of the principal officer, manager or business owner
- The company's address
- The date the company was formed or acquired
- The type of entity and its principal business activity
- The closing month of the company's fiscal year
- The expected number of employees
- The contact person's details
When should you apply for an EIN?
Ideally, apply for your company's Employer Identification Number during the formation process, so there are no delays later. If, for example, you want a business license but haven't applied for an EIN yet, the process can stall, and that can affect a successful start for your business in the US.
Your partner for your US company's EIN application
With Mount Bonnell Advisors, you have an experienced partner who has successfully handled the EIN application for many clients over the years. You save valuable time and effort and can stay fully focused on forming your company. Simply use our service.
Any other questions about the Employer Identification Number or other tax matters for your US company? Just get in touch for a personal consultation and we will give you the answers you need.
