Business

A Step-by-Step Guide for EIN Application for Small Businesses

Every business will need Employed ID Number (EIN) or Tax ID. This form is used for legal purposes, and other banks will require you to provide one, loan applications, and for accepting credit and debit cards.

While reading this article, assume that you need an EIN because you’re planning to start a small business. This article will discuss different options for federal ein application, depending on your business legal entity type and the other necessary information you’ll need.

Once you’ve completed the form, you’ll be prepared to use this step-by-step guide because all the information you’ll need is here. This guide is intended to give general information for new business owners. The application is a bit complicated; that’s why this article was written to help you. It is not intended to give any legal or tax advice or provide a specific legal step to complete this application.

Each business has a different situation, and your tax lawyer or professional may instruct you specific directions. Always consult first to a lawyer or a CPA to ensure that you follow the federal laws.

Before You Start the Application Process

Before you begin with the EIN application process, secure a printout copy of Form SS-4. Utilize this completed form as your guide while finishing the process. If you plan to answer all the questions through the online application, it’ll take some time to complete the form; the EIN assistant will time you out. EIN online application won’t save your information and will not allow you to come back to the form again. That’s why it is essential to download first the form so you can answer the questions whenever you want.

How to Fill-Up the EIN Application Form

Below is the step-by-step guide for filling in your EIN application form:

  1. Go to IRS EIN Assistant Page 

Visit the official website of the IRS and go to the EIN assistant page for the form.

  1. Choose the Type of Your Business Legal Structure

Choose your business legal structure, when you click “Continue,” you’ll see a page that describes the income tax structure for that type of business. So, if your business is an LLC, you’ll be asked how many owners or members your business has.

  1. Reasons You Need EIN 
  • New business
  • Banking purposes
  • You need to hire employees within one year
  • Purchased an active business
  • Changed the type of your organization.
  1. Appoint Responsible Party 

You must appoint a responsible party to sign your EIN. The responsible party should be associated with the business and has the authority to sign for your company. Also, you must be aware that there’s a difference between a “responsible” and “nominee party.” If you’re not familiar with this, it is advisable to talk with your attorney.

  1. Provide Required Information About the Business 
  • Business legal name
  • Trade name or DBA if different from the legal business name
  • County, State
  • If your business is a corporation, LLC, or a partnership, state the location where the company is registered
  • The foundation date of your business.
  1. Applicable Taxes 

The application will ask the business if you engaged in these following activities that require federal taxes:

  • Gambling/wagering
  • Alcohol, firearm sales, or tobacco
  • Highway motor vehicle operation
  • Or, number of employees expected in the next year.

If you are not sure about what to fill-up, or you’re not decided whether you’ll get EIN or not, ask your CPA or attorney about this matter. And when you’re in doubt, get the EIN. It won’t cost you anything, and you’ll never know who might request it in the future.

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