What is EIN and what does it stand for?
If you are wondering what an EIN is, then it is a unique nine digit number and it stands for an employer identification number. In the USA, there are different types of Tax Identification Numbers (TINs) and EINs are one such number. The EIN issued by the Internal Revenue Service (IRS) to different forms of businesses, is also known as the Federal Employer Identification Number (FEIN) or simply as the Federal Tax Identification Number.
We can help you with getting your TIN or EIN!
IncParadise, one of the most reputable agents in the country offers a Full EIN service at just $45. Our support also covers:
- SS-4 faxed by the IRS
- IRS Form CP 575 – online retrieved letter from IRS website
- 147C letter – physical confirmation letter mailed by IRS
Why do businesses need an EIN?
In order to understand how to obtain an employer identification number, it is important to first identify the need for businesses to apply for this unique number. If you are planning to start a new business in any state in the US then you may be required to file business and state taxes, which can vary according to the jurisdiction for registration of the said entity. Most entrepreneurs face the question – of why they need an EIN for a business and the answer lies in the eligibility and requirement criteria as mentioned by the IRS.
You can form a wide variety of business structures in the USA and not every form of the structure requires you to apply for an EIN online. If you were to form a single-member LLC or sole proprietorship then you might not need an employer identification number especially if your company does not have any employees. There are certain criteria under which you may need to get EIN online. Similarly, if your business structure is that of a traditional C corporation then you will need an EIN to fulfill all your employer tax responsibilities according to the IRS.
There are other scenarios for why you need EIN for a business. For example, if the current ownership or business structure changes.
For example: If you currently operate a sole proprietorship and change the structure to a partnership or incorporate then you will need to apply for an EIN online.
There are also several other scenarios in which an existing business may need to apply for a new EIN. The rules for the requirement of an employer identification number can be different for different forms of businesses.