Internal Revenue Service (IRS) is the government body in United States that deals with most tax related issues. Once you start a business in United States, you will have to contact IRS and get your business a tax ID. This post will discover the types of Tax ID’s your business may need, which forms to fill to obtain them and how long it will take to get your EIN or ITIN.
Employer Identification Number (EIN) is a unique nine-digit identification number assigned by the Internal Revenue Service (IRS) to entities operating in the United States.
When the number is used for identification purposes rather than employment tax reporting, it is usually referred as Taxpayer Identification Number (TIN), and when used for the purposes of reporting employment taxes, it is referred to as an EIN.
EIN allows the IRS to identify taxpayers and keep track of your corporations’ tax reporting. It is important to note that banks mostly require EIN to open corporate bank accounts. Once your business has been legally registered, you can apply for an EIN. If you are not a US citizen and located outside of the US, but conducting business in the US, such as running an e-commerce business, you need to take appropriate steps to get your EIN.
IRS allows few methods to obtain an EIN for non-residents. These methods are; online application, application with mail, fax or even application via phone is an option for international applicants.
All these methods have one specific criteria, which is to file Form SS-4.
SS-4 asks questions regarding your business, including its’ U.S. mailing address, entity type of your company, your reason for applying for an EIN, and the industry you work within.
Regardless of which application method you choose, you’ll receive a SS-4 Form Notice verifying that your business has been assigned with an EIN. Hang on to that notice so you can use it to verify your EIN whenever necessary.
If you consider applying for EIN via phone, there are a few important things you need to keep in mind. First of all, before you make the call, you need to make sure that you are authorized to get the EIN either as the owner of the business or as a Third-Party Designee who has been authorized to act on behalf of the business.
Prior the call you should also make sure to fill out the Third-Party Designee section of the form if you want to authorize someone else to receive the EIN.
Regardless of being the owner or third-party designee, the person who makes the call should be able to answer questions related to Form SS-4.
You should keep in mind that filling this form beforehand will allow you to have the answers during your phone call, which will save time. At the end of your call, you will be given an EIN which you start to use right away but, in any case, IRS sends you a physical copy via mail which takes approximately 4-5 weeks.
Clemta will be your true business partner to smoothen the EIN obtaining process. You will no longer be dealing with the procedures.