Everything You Need To Know About How To Apply For EIN Number
Before you actually start to apply for your EIN number, you will need to familiarize yourself with the term and its importance. The employer identification number is a requirement of the Internal Revenue Service. In order for a business entity to be qualified to file a tax return, they will need to have this personal ID number on hand. Below you will discover more information about applying for the EIN.
Estates and Trusts
If you inherit a large trust or estate, you will need to apply for a personal EIN. If the trust is classified as a grantor-owned revocable, then you will not need an EIN number, when you file your tax returns. While there are some exceptions to the law, it is important to do a little research to make sure that you are in good standing with the IRS. This will prevent any delay in filing your taxes or other documents.
If you own a business and want to bid on a federal government contract, you will need to apply for an EIN. Since you will need the personal ID number for paying business taxes, you should go ahead and apply through the IRS, third party designee, or Social Security Administration. This will save you a lot of grief later on down the road, so everything will go smoothly.
Third Party Designee
Everyone that had to deal with any federal or state government entity surely knows how frustrating it can become at times. This is why many business owners will skip over these entities and go directly through a third party designee. These companies are very reliable, but they do charge a small fee for their services. If you do not want to delay the process, then you should definitely go this route, because it will save you a lot of time waiting for an IRS agent to file your application.
The SS-4 document is pretty much self-explanatory, but it is crucial to complete the entire form. Many individuals will elect to skip specific questions on the form, just because they feel like it does not apply to their business or they do not understand the question. This is a huge mistake that should be avoided at all cost. If you fail to complete the form appropriately, the order will be denied and returned to you for completion.
In order to be approved for an EIN, you will need to provide the IRS with a primary address within the United States. If you reside outside of the United States, you do not meet the qualifications that are put forth by the federal government.
If you are going to apply for your personal EIN number, you should take the time to do thorough research, before you actually begin the process. Once you submit the standard or rush delivery fee, you will not receive a refund, even if you change your mind. If you have any questions concerning the application, you should visit the IRS or Social Security Administration website.