An EIN application online with IRS is required for most types of business entities. The Internal Revenue Service (IRS) uses Employer Identification Numbers (EIN) to track legal entities and their respective tax obligations.
Like a social security number, an EIN number will be with a business in perpetuity, unless the business or owners file bankruptcy, the business becomes a new entity type, or the secretary of state distributes a new corporate charter.
EIN numbers are a type of tax ID used primarily by the IRS for identification purposes.
The IRS requires most businesses to complete an EIN application form, however, they’re not the only ones who use EIN numbers.
For example, banks and lending agencies will use an EIN number to establish accounts and credit in the name of the business. Moreover, state or locally controlled permits and licenses are furnished to businesses that have obtained an EIN.
Although the IRS has made it mandatory for most businesses to complete an EIN application form, they are not the only ones that use it.
The best way to apply for an EIN number for your business is to get an EIN online. The EIN application online with IRS can be complicated for new business owners, so third party providers have simplified the process to streamline the forms and registration.
Most online EIN applications are processed within 24 hours and delivered right to your inbox. You can also apply for an EIN by mail or by phone, but these methods can take up to two weeks to complete.
Don’t wait to get this important tax ID. Even if your business isn’t required to have an EIN number, it’s a good idea to have one to help grow your business.