how to get an employer identification number
applying for an ein costs nothing applications can be made by phone for those who aren t in the united states but will do business in the country fax mail or online the process is fairly easy and uncomplicated applicants must fill out form ss 4 application for employer identification number which is available on the irs website the irs requires the following information to be included on the application in order to issue an ein such as the name of the company s principal officer grantor general partner trustor owner or any other title along with their personal taxpayer identification number some of the information that must be included on the form includes a business must be located in the u s or u s territories to apply for an ein online once the online information is validated an ein is assigned immediately the person responsible for the business regardless of their title within the company must be an individual and not an entity unless it s a government entity benefits of an employer identification numbereins are unique to the businesses to which they are assigned the numbers never expire and the same number set is never reissued to another business even if the original employer goes out of business the main advantage of getting one is being able to operate you can t run your business without it you must apply for an employer identification number before you even get started you also need an ein to do the following getting an ein allows you to keep your personal finances separate from your business ones this allows you to shield your personal information and keep it protected from identity theft self employed individuals such as subcontractors don t need an ein however they can still get one and it might be a good idea as they must give an identification number to those paying them for tax reporting purposes an ein can be used instead of their social security number to protect against identity theft businesses that change their ownership structure usually must apply for a new ein for example sole proprietors who plan to incorporate their businesses must apply for a new ein closing your employee identification numberonce you are assigned an ein that identification number will forever be associated with you and your company that ein becomes permanently associated with that entity and the irs can technically never cancel an ein an ein is a critical part in required financial reporting even if an entity never files any return the ein is still associated with it once an ein is issued the identification number can be used at a later day if the entity needs if you do receive an identification number but later decide the number was never needed the irs can close your associated business account this is often the case for startup companies that never actually launch a physical letter must be mailed indicating the legal name business address ein number and reason for the account closure the ein will remain only the irs business account will be suspended employee identification number vs taxpayer identification number tin a tax identification number tin is a broad term used to describe any type of identification number an ein is a specific type of tin a tin is a generic descriptor for an assortment of numbers that can be used on a tax form including but not limited to depending on the nature of the particular taxpayer the ein may or may not be the tin used by the irs for sole proprietors the tin is often their social security number for corporations partnerships trusts and estates their tin is often an ein 