What is a Federal Identification Number?
The EIN is issued by the IRS. It is necessary to have an EIN both to open a bank account, pay your corporate taxes and run your business. It is similar to an SSN as an individual and differentiates you from any other company.
The EIN is your permanent number and can be used immediately for most of your business needs, including opening a bank account, applying for business licenses, and filing a tax return. However, no matter how you apply (phone, fax, mail, or online), it will take up to two weeks before your EIN becomes part of the IRS' permanent records. You must wait until this occurs before you can file an electronic return, make an electronic payment, or pass an IRS Taxpayer Identification Number matching program.
Who needs an EIN?
You need an EIN if you:
- Started a new business
- Hired or will hire employees, including household employees
- Open a bank account
- Changed the legal character or ownership of your organization
- Purchased an ongoing business
- Created a trust
- Created a pension plan as a plan administrator
- Are a foreign person and need an EIN to comply with IRS withholding regulations
- Are a withholding agent for taxes on non-wage income paid to an alien
- Are a state or local agency
- Are a federal government unit or agency
- Formed a corporation or a limited liability company (LLC)
- Formed a partnership
- Administer an estate formed as a result of a person's death Represent an estate that operates a business after the owner's death.
How do I obtain an EIN?
In order to obtain an EIN you must have a SSN or an EIN previously issued to a corporation or LLC already in business. If you are an international client filing a new company in the state of Delaware and do not have either an existing EIN from another company, a SSN or ITIN number you can use our Limited Non Resident Application Services (Professional Director).
Apply for an EIN
We can either obtain an EIN on your behalf or you can contact the IRS directly. Our experience proves that when you retain us to form your corporation you should request that we process the application for you as well.
To properly submit a Form SS-4, the form and authorization should include the name, Taxpayer Identification Number and signature of the responsible party. Third party designees filing online applications are reminded of their obligation to retain a complete signed copy of the paper Form SS-4 and signed authorization statement for each entity application filed with the IRS.
If a Professional Director is used in the state formation process and the true responsible party has not yet been identified, the entity must identify that individual before applying for an EIN.
If you would like us to apply for the EIN on your behalf go to our online fee schedule. Our service fee is $45 as long as you have a SSN issued in the United States.
If you do not have a SSN we can provide Limited Non Resident Application Services (Professional Director) for processing the application for our fee of $250 payable online as well