Guide on Acquiring a Tax Identification Number
The Internal Revenue Service (IRS) uses Employer Identification Numbers (EINs) to identify businesses in the United States. If you're starting a new business, you'll need an EIN to handle your tax affairs. Here's a simple guide on how to get a free EIN from the IRS online.
To begin, head over to the official IRS website at IRS.gov. From there, locate the "Get an Employer Identification Number (EIN)" page. Once found, click the button labeled "Apply Online Now" or "Begin Application."
Next, complete the online application form by providing the required information. This includes your legal name, Social Security Number (SSN) or Tax Identification Number (TIN), business structure, and details about your business.
Submitting the application online is straightforward. Once completed, you will receive your EIN immediately on the screen. The entire online application process typically takes about 15 minutes and is free of charge.
It's important to note that the IRS never charges for issuing an EIN. Additionally, applying online is faster and easier than applying by mail, fax, or phone. The online application is available Monday to Friday, 7 a.m. to 10 p.m. Eastern Time.
If you don't have a SSN or TIN, or if you're an international applicant, you'll need to apply by mail, fax, or phone. In such cases, the process may take longer, with mail applications taking about four weeks for the EIN to arrive.
Remember, the person submitting the form must be a responsible party in the business, such as an owner, partner, or principal officer. Also, ensure you have all necessary paperwork ready before starting the application, as this will make the process smoother.
In 2016, there were 32.5 million businesses in the United States, with 76% of these being self-employed people without employees or payrolls. So, if you're one of these entrepreneurs, getting a free EIN from the IRS online can help you manage your tax obligations with ease.
To ensure smooth management of your personal-finance and tax affairs, it's crucial to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you're self-employed. The online application process is free, straightforward, and typically takes about 15 minutes to complete, granting you immediate access to your EIN upon submission.
