find a federal business identification number – A business tax ID number or federal tax ID known as an Employer Identification Number EIN is a unique 9-digit number that identifies your business or company with the IRS. In other words, EIN is a significant tax identifier for a business or a company. The tax identifier works similarly to a Social Security number for individuals and every business needs to apply for this federal business identification number.
One of the most critical reasons for having an EIN is to identify your business or company for federal income tax purposes including applying for business bank accounts, credit cards or loans and licenses, local and state taxes and other registrations. Not having a business tax ID number can prevent you from meeting business tax deadlines or getting funding for your business. This guide will provide an overview of how you can find a federal business identification number.
Highlights of this Post
What Is An EIN How Can I Get One?
EIN stands for Employee Identification Number and is a nine-digit number that the Internal Revenue Service requires from business entrepreneurs or owners who pay their employees. However, even if you are not paying your employees as a business owner there are good reasons why you should apply for an EI.
For instance, you can use EIN to open a business bank account, apply for business loans and business licenses and file tax returns. EIN enables business owners or entrepreneurs to give out tax ID numbers different from that of their Social Security number. The primary advantages of applying for EIN are protection, safety and safeguard against identity theft.
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When Your Business Needs An EIN?
Some businesses can operate easily without applying for an EIN. Generally, any type of business can apply for an EIN however as per the IRS guidelines you need to get an EIN for your business if you.
- Start a business registered with a state for instance LLC, partnership or corporation
- Pay at least one employee
- Withhold tax on income apart from wages paid to non-resident immigrants
- File tax returns for employment, alcohol, excise, firearms and tobacco.
- Involved with the following: real estate mortgage investment conduits, trusts, tax-exempt organizations, IRS, nonprofit organizations, plan administrators, farmers cooperatives etc.
- Have a tax deferred keogh plan for the employee pensions.
If you’re not sure whether your business needs to have a federal tax identification number you can consult with a certified accountant or a tax professional and seek their guidance about your individual situation.
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Why Should You Know Your Federal Business Identification Number?
The Internal Revenue Service or IRS requires a lot of businesses and companies to apply for EIN. The exceptions to this rule are some owners of single-member LLCs and sole proprietors who can use their Social Security number instead of their business tax ID number.
However, a lot of small business entrepreneurs are applying for EIN to separate their personal and business finances. No matter whether you choose to get an EIN or if the IRS requires your business to get an EIN you will need to provide your federal business tax ID number in the following situations.
- When applying for a business loan
- When filing business tax returns or paying business tax
- When applying for a business credit card
- When opening a business account
- When issuing 1099 forms to independent contractors.
When you may not see these transactions happening regularly you’ll need to provide your EIN several times every year when you consider all of these transactions together. Therefore a federal business identification number is quite important and needs to be stored safely.
How To Apply For EIN From IRS?
There are different ways in which your business employer can apply for EIN from the IRS. The most preferred and fastest way to apply for an EIN is online. The US Small Business Administration recommends business owners apply for EIN right away after registering their business with the local or state government.
Following are the options that you can look at and choose one that aligns with your needs.
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Online
The EIN Assistant by the IRS is one of the most user-friendly online application platforms that business owners can use to request federal tax identification numbers for their companies. On using the online tool you need to complete an application form in a single session.
It is important to keep in mind there is no option to save the work and return later to pick up where you left off. In case you leave your online session inactive for 15 minutes then the security measure kicks in and you will have to start the application form from the beginning.
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Fax
Business owners can apply for an identification number of their business through Fax. For this, you need to download and complete the form SS4 from the official IRS website.
Businesses operating in the United States must fax their completed form to 855-641-9535. You can look for other fax number options by visiting the IRS website.
The processing time for mail and fax applications is longer. Within one to two weeks, an EIN can be faxed back to the IRS.
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Telephone
Business owners applying for EIN for their business from outside the United States or international locations must complete an application over the phone. You can call at 267-941-1099 Monday to Friday from 6:00 AM to 11:00 PM EST.
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Mail
The Internal Revenue Service enables business owners to apply for an EIN through Mail. You can send the mail by completing the SS4 form at the following address so long your business is operating within the United States of America.
Internal Revenue Service
Attn: EIN operations
Cincinnati OH 045999
You can check other alternative mailing addresses on the IRS website for your EIN application. It is important to verify that your business is located in the United States of America or any US territory to get an EIN number. Applicants should have a valid Social Security number or acceptable taxpayer identification number such as EIN, ITIN etc. Applying for EIN is completely free of charge unless you are hiring a third party to manage the whole process.
How Long Will It Take To Get An EIN?
You’ll get your EIN right away if you fill it out correctly. It is your responsibility to apply as soon as possible so that you can receive your number prior to submitting tax returns or other forms requiring an EIN.
The exact amount of time it takes for a business to receive EIN may vary depending on a lot of factors. The results will depend on how you are applying for your business tax ID number.
- Online: If you are applying for a business federal tax identification number online then you can get an EIN number right away
- Fax: Business owners who have faxed applications can receive a fax back with their EIN within four business days.
- Mail: You can send your EIN application through mail and have to wait around for four weeks for the processing.
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How To Find Your Business Tax ID Number?
A lot of times business owners get stuck midway through tax returns, loan applications or bank account applications since they are not aware of their business tax ID numbers. Thankfully locating your EIN is a simple and pretty straightforward solution. When you are working on a business application or document you may be asked for your EIN.
Following are the best places to find your business EIN.
- The business division website of your state if you have registered your LLC, partnership or corporation with your state.
- The document you received from the IRS or the original document of your receipt at the time of applying for your EIN
- Your business tax return from the previous year.
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You can look for your EIN on other applications and business documents including the following.
- Official tax notices from the IRS
- Old federal tax returns
- Application for business credit card
- Application for business loan
- Business bank account application, a copy of local or state license or tax permit for instance fictitious name statement or sales tax permit.
- On the 1099 NEC form you received for your work as a freelancer or independent contractor
- On the 1099 MISC form or 1099 NEC form that you have used for reporting your business payment.
You can call the IRS business and speciality tax line to get connected to a representative who can help you provide your EIN over the phone. The business and speciality tax line of the IRS is open between 7:00 AM to 7:00 PM ET Monday to Friday.
Contacting the IRS to locate your EIN should be your last resort. It is also important to keep in mind that the IRS will verify your identity to help you retrieve your business tax ID number. For instance, you need to prove you are a sole proprietor, corporate officer or partner in partnership.
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How Can You Cancel Your EIN Number?
It’s possible that you don’t have an EIN if you’re a sole proprietor. The owner’s Social Security number is fine for many sole proprietorships. However, you should have requested and received an EIN from the IRS if your sole proprietorship appoints employees.
The IRS cannot return your EIN once you have it. Like your Social Security number, your EIN is yours forever. Nothing changes if you are no longer in business and have never used your EIN to file a federal return You can use your EIN again if your business comes back later.
The IRS can close your tax account rather than canceling your EIN. Send a letter to the agency explaining why you want to close the account and including your company’s full legal name, EIN, and business address. If you still have the agency’s original EIN assignment notice, include it with the letter.
Special Situation
If you have a tax return or tax payment to file, make sure you’re taking care of that first. Take care of the tax return or tax payment you need to file first. Your account won’t be closed by the IRS until all of your paperwork is in and you have paid off all of your tax debts. When you send the IRS a letter requesting that your account need to be closed, it will let you know whether or not you still owe taxes.
If you discover that the IRS assigned you an EIN that you never requested, the situation becomes even more concerning. The worst-case scenario is that you become the victim of identity theft. However, there is also the possibility that a third party, such as your spouse, accountant, or business partner, requested the EIN for any reason.
If there’s no legitimate reason, you have a problem then you must submit Form 14039-B, to give the IRS information regarding your business as well as the receipt of the EIN and documentation of your identity. The unwanted EIN will be removed from your account if the IRS investigation reveals the issue.
How Can You Find Another Company’s EIN?
There are times when you may need to look up another company’s EIN. For instance, you can use an EIN for verifying clients’ information or a new supplier.
If you belong to the insurance industry then you need another company’s EIN for managing your daily course of business. You can use the following options to find the business federal tax ID number of another company.
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Ask The Company
You can ask the company directly about their federal tax ID number. Somewhere in the accounting or payroll department will help you to know the company’s tax ID. There is no guarantee the business will be willing to share the EIN details.
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Search SEC Filings
You can find information about a company including their business tax identification number by searching the federal and state government websites.
For instance, you can look at the official website of the Securities and Exchange Commission, if the business is publicly traded and enter the name of the company. SES filings will contain the business’s federal tax ID number.
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Confirm With The Credit Bureau
With the help of a Credit Bureau you can purchase your business credit report or see the business credit report of another company for a small fee however, these reports will not always show you the company’s income. You need to make sure the report you are considering comprises the EIN before you order it.
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Use Melissa Database For Nonprofit Organizations
You can access free federal tax ID for nonprofit organizations by accessing the Melissa database. People who have a legitimate need to locate the EIN for another company can use one of these options to look up the number.
You just need to ensure you keep your EIN secure. You need to share the EIN with a limited group of people for instance lenders, bankers, prospective suppliers etc. Safeguarding your business EIN is important just like you safeguard your Social Security number.
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How Can You Get A Tax ID Verification Letter?
Following a request for an Employer Identification Number (EIN), the Internal Revenue Service sends an official confirmation in the form of a tax ID verification letter. The application for an EIN and the subsequent verification letter are fairly straightforward. Even if the original letter is lost, you can get a new one.
If you apply for your EIN online, you will get a response right away and be able to print out your EIN confirmation notice right away. It’s a good idea to save the document so you can keep track of your transaction and documentation electronically.
The tax ID verification letter, referred to as a CP 575, will be delivered to you within four business days if you submit your application via fax using Form SS-4. The letter should arrive within four weeks if you apply via mail.
When you first get your EIN, you may never need to show anyone your tax ID verification letter again. However, you may be required to provide official verification of your EIN when applying for a loan or working with a new vendor
When Should A Business Entity Reapply For An EIN?
Businesses are required to have a new EIN in case the business makes changes in its structures. Every type of business identity is required to apply for a new EIN under the following situation.
Partnerships, if you
- Incorporate
- Terminate the previous partnership and begin a new one
- Leave the partnership when it becomes a sole proprietorship.
Partnerships that change their name, or location or declare bankruptcy are not required to apply for a new EIN. Also if more than 50% of the ownership of the partnership changes hands within 12 months (Both in capital and profits) is not required to apply for a new EIN.
Sole proprietors, if you
- Incorporate
- Inheritor purchases an existing business which will be operating a sole proprietorship
- Are subject to bankruptcy proceedings
- Become a partnership
Generally, sole proprietors are not required to reapply for EIN if they are changing their business location or name or operating multiple businesses under one name.
Corporations, if you
- Change to sole proprietorship from partnership
- Receive new corporate charter from the Secretary of State
- Become a part of a new corporation that was created after a merger
- Become a subsidiary of the parent corporation and use the parent corporation EIN
If your business is a division of a corporation then you need not apply for a new EIN. Also, corporations that change their location or name, declare bankruptcy or choose to file taxes as S Corp is not required to apply for a new EIN.
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Conclusion
Applying for an Employment Identification Number should be your topmost priority if you’re opening a new business in the United States of America. EIN or federal tax ID number is a nine-digit number that will identify your company with the IRS and work similarly to the Social Security number for individuals. Even though not every type of business needs to apply for an EIN many are required as per the IRS. Around 5.4 million businesses in the US have applied for new EINs in the year 2021. Applying for EIN for your business is completely free of cost. However, business owners have to put some legwork into the application procedure.
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Frequently Asked Questions
How Can You Get A Tax ID Number For A Small Business?
It’s easy to get a tax ID number. You can apply for an EIN through the IRS either online, via mail, fax, or phone after determining your eligibility. The application process is completely free. You can also apply for an EIN through an online legal service, but this service will cost you money.
Why Apply For An EIN or Employer Identification Number?
An EIN is unnecessary for many small businesses. You probably don’t need one if you run your business as a sole proprietorship without employees. But you must apply for an EIN if you have employees or run your business as a corporation or partnership. The establishment of a Keogh plan through your business or the filing of a tax return for firearms and tobacco also require an EIN.
Do You Need An EIN If You Are Self Employed?
An EIN is not required by law if you are an official sole proprietor and work for yourself. However, having an EIN can help you keep your personal and business finances separate, among other advantages.