- An employer identification number is a nine-digit code used to identify a company. It is similar to a Social Security number, which identifies an individual. You need an EIN if you operate the business as a separate entity from yourself (such as a corporation), hire employees, have a Keogh plan or have to file certain special tax returns. The IRS allows you to apply for an EIN online, via fax, through the mail or by phone. Before you do, make sure you have a few basic pieces of information.
- The owner or a representative of the company must be a responsible party on the employer ID number application. So you need a valid Social Security number for that person in order to complete the EIN filing. In addition to the SSN, you must provide the name and address of the person responsible for the application.
- If the company or the responsible party, which can be an organization, is registered as an official corporation or partnership, it's important to have your business registration paperwork handy. That may include articles of incorporation, state registration forms and the partnership agreement. You must transfer the information requested by the EIN application, including the business address and additional details, as shown on your official paperwork.
- While it's not always required for every type of business, you may need to provide a fictitious name (also called a "doing business as" name) to complete the EIN application. Corporations, trusts and partnerships have to use a separate entity name for identification purposes. In this case, you must have a registered fictitious business name form from your state in order to file for the federal employer ID number. A sole proprietor must use a personal name when filing.
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