How to Apply For An EIN Tutorial
Do you pay withholding taxes for your employees or have a brokerage account and need to report withholding taxes? If so, you will need an EIN or employer identification number. This is a nine digit number that is assigned to employers or those that own a brokerage account. The Internal Revenue Service is the government entity that is responsible for issuing these numbers, but you do not have to go directly through this agency to get your EIN. Below you will discover several tips on how to apply for an employer identification number.
Third Party Designee
The federal government has enrolled a third party designee to assist individuals in applying for their EIN. These agencies will work alongside their clients to prepare and submit their employer identification number application for them. Of course, you will be expected to pay a small fee for this service, but in the long run it could potentially save you a lot of grief later on down the road.
If you agree to hire a third party designee or apply directly through the IRS online website, your personal data will be held in the utmost confidential manner. Both of these entities will protect the client’s information, so that the wandering eye will not come into contact with this sensitive data. You can rest assured that your data is in the best hands, if you select to go third party or through IRS to apply for your EIN.
The first step of the process is to complete the EIN application. It is important to complete each step of the application and never leave any portion of the form empty. If you fail to complete the form appropriately, it will be rejected for review. This will only delay the process, which means you will have to complete the application and resend it to IRS. This is why many individuals go through a third party designee, because they will complete the application for them. This will ensure client that the entire proceeding will go smoothly, without delay.
In order to apply or be issued an EIN number, you will have to be a resident of the United States. You will need to provide the IRS with your social security or federal tax ID number, in order for your application to be accepted. While many individuals are weary about putting this data on paper, you should not be concerned, because all applications are submitted and reviewed in a very secure manner.
No Expiration Date
After you are issued your new employer identification number, it will never expire. This will definitely offer much convenience for owner or grantor, since they will never have to worry about reapplying or updating their information.
If you own a business that pays employees or own a brokerage house, you will need to obtain an EIN number. Third party designees are always a great option for those that want to ensure that their application will be processed in a timely manner.