A Tax Identification number is highly important to fulfill tax responsibilities and other operations. The IRS allows the online application for the Employer Identification Number only. If you are opening any business or entity, you need to have an EIN for many purposes.
If you are looking to obtain the EIN as early as possible, you can check out the online application process and other details about the Tax ID here.
IRS Tax ID Application: How to Apply Online
The IRS has a tool called EIN Assistant that allows you to apply online and get your EIN online or by mail. Before you prepare for the IRS Tax ID online application, you should have the following:
- Responsible party taxpayer ID number or SSN,
- Know your business Entity Type
- Sign Authorization, if you are a third-party designee
- Other documents, as per the entity you are applying for a Tax ID.
To complete your IRS Tax ID online application, you can follow the step-by-step guide below:
- On the IRS website and click the “Apply for EIN” option in the help section.
- On the next page, again, click the Apply for EIN to go to the EIN assistant page.
- Next, in the identity section, choose your legal entity for which you are applying for an EIN.
- Now, authenticate the entity information, form business name, address, and other details.
- Once you enter all the details, such as the responsible party information, your name, and others, you can submit the online application.
Remember, the IRS will validate your information from the registered information of your legal entity with your state, and if they approve, you can get your online EIN on the same day; however, you can also request to receive it through mail to get the physical copy.
How does the Tax ID online application work?
If you are preparing to apply for the IRS Tax ID number (EIN) online, you should understand how the tool works to avoid any errors and apply smoothly:
- The IRS online application for EIN should be completed in one session, as there is no feature for saving it for later.
- The IRS tool for EIN application expires after 15 minutes of inactivity, so remember to file it; otherwise, you have to start all over again.
- The IRS tool for EIN applications can only be used once per day by each responsible party.
- The IRS online tool is only available from Monday to Friday between 7 AM to 10 PM.
- You should save or print the EIN confirmation letter when your application is approved.
Who can use the IRS tax ID online application tool?
If you are applying for the EIN for an LLC, partnership, corporation, trust, estate, or other business entity and wish to use the IRS online tool for the application, remember, you can only use it when you meet the following conditions:
- Your main business place should be in the US or its territories, and you must have registered it with the respective state.
- The responsible party who is in control of the entity in the US can apply, or the authorized representative of the entity.
- If you are not the responsible party, you must have the responsible party’s ITIN or Social Security number.
Remember, if you are someone whose main business is outside the US or you are applying as a foreign applicant, you can’t use the IRS online tool for the EIN application.
When will you require a Tax ID EIN?
For taxation purposes, the IRS uses the Tax ID number to identify and determine the assets or companies. So, you will definitely need a tax ID (EIN) when you have to file tax returns; however, their other purposes where you will require an EIN, such as:
- Pay scales and excise duties taxes
- Recruit new employees and handle their payroll taxes
- Business operation or partnership
- Handle funds or establish a business bank account
- Change the business ownership or model
- Manage the retirement plans, estates, trusts, and others.
However, if you already have an EIN, you may need a new one depending on the type of legal entity you have. For instance, Corporations have to apply for the new EIN when they have a merger, change to sole proprietorship or partnership, etc.
Other Ways to Apply for a Tax ID
If you can’t access the online IRS tool for the tax ID applications, you can move to other methods of applications, such as:
- By Fax: Download the IRS EIN Form SS-4 and fax the filled version to 855-641-6935; your EIN will be faxed in 4 working days.
- By Mail: You can post the filled form SS-4 to the IRS at “EIN Operation, Cincinnati, OH 45999” and expect your EIN in four weeks.
A Tax ID is an important document for your business or entity in the US, so when you apply online, remember to review the application multiple times and enter valid information to get it in the same day.
