How To Apply For An EIN

How To Apply For An EIN Number [Free & Easy Steps 2021]

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How To Apply For An EIN Online

How To Apply For An EIN Number

Your Employer Identification Number, or the EIN, is a number used to help identify a business identity.

Most of the time it is businesses who need this number.

You can choose from a variety of methods to apply for this number, though the online application is the easiest and most preferred method.

It is free to apply and can be a great way to keep all of your business accounts organized. 

Who Can Apply for an EIN?

Anyone can apply for their own EIN. If you run a business, you can choose to apply for this number to use on your business taxes.

Even sole proprietors can use this number if they would like to keep their SSN secret from others.

If you plan to have a nonprofit, a trust, an estate, or any business type higher than a sole proprietorship, then an EIN is required before you get started. 

Incfile can help you register an EIN and easily.

When Should I Apply for an EIN?

You will need an EIN to help run your business. Not all businesses need this though.

If you plan to be a sole proprietor, then you can just use your Social Security Number.

But if you plan to organize under a different type of business structure, then you will need to have the EIN.

The EIN is used for:

  • Opening a bank account: Your banks will need the EIN to open any business bank account. 
  • Applying for your permits and licenses: You have to present this information ahead of time. 
  • Filing tax returns: If you want to do your taxes for the business, you will need an EIN. 
  • Hiring employees: This is a great number to use to track your employment taxes as well. 

What Information is Needed to Apply for an EIN?

The exact information that you need to help you apply for an EIN will depend on what kind you want to apply for.

However, some of the information you should gather ahead of time includes:

  • Contact information
  • How many employees you expect to hire (you can change this later if your business grows)
  • The date you started or acquired the business
  • The type of business you have
  • The number of members if you start an LLC
  • Name of the owner or principle manager
  • The closing month of your accounting year
  • Business address. 

How to Apply for an EIN

When you are looking at how to apply for an EIN number, there are several options available.

Some choose to apply in person, some like to send in a physical form, and others prefer to learn how to apply for an EIN online.

  • In-person
  • Online
  • By phone
  • By fax

Let’s look at the different steps you need to take to apply for your own EIN. 

How to Apply for a Nonprofit EIN

You will need to have an EIN for your nonprofit business as well, especially if you have employees who need to file tax returns.

Just like the other options for getting an EIN, you can apply either by telephone, fax, mail, or online.

Online applications are often the easiest and can be completed in a few minutes. 

How to Apply for An EIN for an Estate

An EIN will be necessary if the personal representative of an estate would like to open a bank account for the estate at a national or local bank.

This account will then hold onto funds from the estate until all probate is wrapped up so the money can be handed out to the right parties along the way.

You can fill out a form online and click on Estate on that first page to be directed to the necessary questions to get it done. 

How to Apply for an EIN for an LLC

The easiest way to apply for your EIN as an LLC is to use the online form.

This form will ask you a few questions about your LLC, including who is involved, whether a spouse will be part of this, and other information relating to your business.

It will only take a few minutes to answer the questions. 

How to Apply for an EIN for a Trust

Applying for an EIN for a trust is easy to do. You need to determine whether an EIN is necessary for your trust.

Generally, having a tax ID is not necessary for any living trust because you can use your own social security number.

However, once you pass on, the trust will need this ID number to continue on.

If you do want to set up an EIN, just gather the right information that includes:

  • The date of funding
  • The closing month of the accounting year
  • The legal name of the trust
  • The trustee’s name
  • The type of trust
  • The mailing address 

Bring all of this along and submit the proper application to get started and that is all there is to it. 

How Much Does It Cost?

How much does it cost to apply for an EIN number? It does not cost anything to apply for your own EIN. There are some services out there that will help you do this and they may charge a fee.

But since you can do it directly through the IRS with minimal steps, there is no need to pay the extra money to get it done. 

What About Minors?

Can a minor apply for an EIN? There are no age limits to applying for an EIN. It is possible to apply for this number at any time.

This means that a minor is able to apply for an EIN, though this is usually not necessary unless they plan to start their own business and want to keep their social security number safe from others who may want it.

If you are a minor and want to apply for an EIN, you just need to follow the steps above. 

Summary

An EIN is one of the best tools that you can have when starting your own business.

It helps you to keep organized, ensures that you are able to file your business taxes the right way, and needs to be present if you plan to have employees.

There are different ways that you can apply for your EIN, but it is always free and readily available through the IRS. 

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