The IRS assigns employers a unique 9-digit number. It is known as the Employer Identification Number or EIN. So, if you are thinking about setting up a new business, you will need an EIN for tax purposes.
The IRS will use this number to identify a business. Employers will use it for filing requirements and tax reporting. The initial step will be to determine your eligibility.
IRS wants you to determine if you are eligible
A citizen can only apply for an EIN if their main business is in the United States or a U.S. territory. In order to apply online, you must meet another important requirement.
Secondly, the person who needs to apply online must have an ITIN said the IRS. This is a Taxpayer Identification Number and it must be a valid one. An EIN or Social Security Number may also be accepted.
Bear in mind that the IRS claims that you are limited to just 1 Employer Identification Number per responsible party per day. By now, you may know if you are eligible for an EIN or not. If so, let’s move on to the next step.
IRS says you must understand the online application
It is essential to know the task you are carrying out because you must complete this EIN application in one session. It is not possible to save and return later to fill it out.
Try to fill it out as soon as possible since your session will expire after just 15 minutes of inactivity. That could happen if you leave it to look for any necessary information. So, be careful.
The third and final step will be to submit your application. If everything is ok, you will immediately get your EIN after completing it and getting all the necessary validations. After that, the IRS suggests downloading, saving, and printing your new EIN confirmation notice.
