To apply for an S-corp election, you must submit a Form 2553 to the IRS. You need an Employer Identification Number (EIN) to handle tax matters.
Importance of an EIN
An S-Corp uses shareholders and employees to run a business. Because of employees, it needs an EIN. The EIN is nine digits and unique to your business.
You can apply for an EIN with the IRS or GovDocFiling. With an EIN, you can hire employees, establish payroll, open business bank accounts, and get licenses.
Most S-Corps need EINs. To apply, visit irs-ein-tax-id.com. Fill out the application. You will receive the EIN within an hour.
Election Process and LLC Conversion
To elect S-Corp status, submit Election by a Small Business Corporation form. It requires your EIN. Obtain the EIN before electing S-Corp status to easily fill out the form.
You can convert an LLC to an S-Corp by filing Form 2553. The conversion doesn’t require a new EIN. The LLC’s EIN remains the same.
FAQs
Can a corporation not have an EIN?
Which form of business does not require an EIN?