Why You Need an EIN
An Employer Identification Number (EIN) is a nine-digit number used by the Internal Revenue Service (IRS) to identify a business. The IRS requires certain businesses to get and use an EIN for tax purposes.
- You need an EIN if:
- You have employees.
- You operate your business as a corporation or partnership.
- You file Employment, Excise, or Alcohol, Tobacco and Firearms tax returns.
- You withhold taxes on income, other than wages, paid to a non-resident alien.
- You have a Keogh retirement plan.
How to Obtain an EIN
You can apply for an EIN online immediately for free from the IRS. You can also fax a completed Form SS-4 application to the IRS service center for your state. They will respond with your EIN by fax in about one week.
EIN Details and Renewal
Once obtained, your business’s EIN does not expire. It stays with the business even if the ownership or legal structure changes. For example, if a sole proprietorship incorporates or a corporation becomes a subsidiary.