At Globe Live Media we explain how to get the EIN, one of the essential documents to open your own business in the US and that can be obtained free of charge by the IRS
One of the essential documents to open your own business in the United States is the Employer Identification Number (EIN). According to the How To Start an LLC portal, this would be like your business’s Social Security Number. It is a nine-digit code that allows the Internal Revenue Service (IRS) to identify businesses for tax reporting and tax liability purposes.
The IRS requires your self-employed business to have an EIN number if you meet any of the following:
1) If your business has employees.
2) If your business is an association or a corporation.
3) If your business declares consumption taxes.
4) If your business withholds taxes for income paid to a foreigner who is not a resident.
This means, in a nutshell, that unless you are your own business and have no employees, your business will most likely require an EIN number in order to function properly.
In fact, most banks require you to have an EIN number in order to open a business bank account, which will simplify your business expenses and allow you to access credit and different forms of financing.
In addition, you will need an EIN number in order to have a business credit card, which can help you not only cover expenses related to your business, but will allow you to build a credit history that could help you get loans.
Finally (although it is not the only thing you may need), an EIN number is required to be able to make employment contracts.
How can I get an EIN number for free for my own business in the US?
Fortunately, obtaining an EIN number is a fairly simple procedure and, most importantly, free. You only have to request one through the IRS portal with the EIN Assistant.
To do this, you must take into account the following factors:
1) The hours of operation in which the IRS can provide you with an EIN is from 7:00 AM to 10:00 PM, Monday through Friday.
2) Only businesses in the United States (ie, located on US soil) are eligible to have an EIN.
3) You must have a taxpayer identification number.
4) The responsible business owner can only apply once a day.
5) Your application must be filled out in one session and cannot be saved.
6) Your session will end after 15 minutes if you are not using it.
7) You will get an EIN immediately after the form has been filled out.
You can also apply for an EIN by mail by completing form SS-4.
It is important that you know that the IRS will request information about your business, including the date of formation and its legal name, as well as an official registration of your business and the approval of its name.
If you have other questions, you can call the number (800) 829-1040 for more information. This is the IRS customer service number.