An EIN can allow someone to do many different things within the world of business. The Internal Revenue Service (IRS) uses an EIN to identify your business as a working entity. As the owner of a business, you can use your EIN for all of the necessities of your business, open a business banking account, and even file taxes. IRS-EIN-Tax-ID is a website that can help you go through the process of getting your employer identification number (EIN). While typically filling out paperwork can be a hassle, they break down the process into very short, simple steps.
When applying for your EIN, you must first decide your entity. The different entities include:
- Sole Proprietor
- Individual
- Limited Liability Company
- Estate of Deceased Individual
- Partnership
- Corporation
- S-Corporation
- Personal Service Corporation
- Church Controlled Organization
- Non-Profit
- Trust
- Other
Since each entity has different requirements, you should do research and make sure you pick the correct one for you. A revocable trust, for example, can be changed and altered and does not require an EIN, only a social security number. Whereas, an irrevocable trust tax id number is required for this type because it can not be altered or changed. When the grantor releases said assets into to the trust, they lose all rights and it requires an EIN to be accessed. After deciding your entity, you can then fill out the application with your correct information, review it, and submit.
You should then receive an EIN number via email. It is important to make sure all information is filled out correctly because if one question is answered incorrectly, your application will be rejected. You will then need to go through the process of filling out another application and it will cause you to have time setbacks.
