EIN | The Biz Knows

Employer Identification Number

Employer Identification Number (EIN), also acknowledged as a Federal Tax Identification Number, is to a business what a Social Security number is to an individual. In short, it’s used to identify a business entity. An EIN is usually required for businesses. If any of the following are true, your business requires an EIN.

Have employees

Operate business as a corporation or a partnership

File any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?

Withhold taxes on income, other than wages, paid to a non-resident alien

Have a Keogh plan (retirement plan for the self-employed and small businesses)

Involved with Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns, Estates, Real estate mortgage investment conduits, Non-profit organizations, Farmers' cooperatives, Plan administrators

You also may need a new EIN if your business structure changes. When opening a new business the EIN is typically one of the things you’ll need. It becomes the permanent Federal taxpayer identification number, once allocated to a business entity, Even if the EIN is ever used to file Federal tax returns, it is never recycled or reallocated to another business entity.

It’s relatively easy and free to obtain an EIN. Visit the IRS website or apply by telephone. You will receive your EIN by the end of the online application process, or phone call if that method is preferred. See below for contact information. Access the application online at https://sa1.www4.irs.gov/modiein/individual/index.jsp or call 800-829-4933 to start the process.

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