An Employer Identification Number (EIN) is a special nine-digit number given to businesses by the Internal Revenue Service. It’s one of the types of Tax IDs used to keep track of businesses for tax purposes.
The first two digits show where it was issued, and the next seven digits identify the business (e.g., XX-XXXXXXX).
Having an Employer Identification Number ensures that your business is not mistaken for another. Your business is assigned a unique EIN, similar to a fingerprint, which doesn’t expire and isn’t recycled for another company.
Why Do You Need an EIN?
An EIN is essential for various business activities. Here are some primary reasons why you need it:
Legal Structure and Compliance: If you are forming a corporation, partnership, or LLC, you also will need an EIN to comply with federal and state regulations.
Bank Accounts and Financial Transactions: An EIN is required to open a business bank account, apply for business credit, and manage financial transactions.
Tax Reporting: An EIN is necessary for filing federal and state tax returns and for applying for certain tax permits.
Business Licensing: Some business licenses and permits require it as part of the application process.
How to obtain Employer Identification Number by yourself
Determine Your Eligibility: Ensure your business is located in the United States or U.S. Territories.
Prepare Your Information: Gather necessary information such as the legal name of the entity, the responsible party’s SSN, and business structure.
Apply Online with the IRS: The IRS website allows you to apply for it online, and you can get your number immediately upon completion.
Apply by Mail or Fax: Complete Form SS-4 and send it to the IRS by mail or fax if you prefer a traditional approach. This process typically takes up to four weeks.
Or use GoNomad Services to get your EIN in 7 business days:
GoNomad simplifies the EIN application process by handling the paperwork within 5 days and ensuring compliance. So you can focus on running your business. Our EIN service can save you time and ensure accuracy, offering a broader package. These includes registered agent services, tax ID acquisition, mailing address setup, and more.
To supercharge your business journey we offer an exceptionally convenient and reliable way to obtain your EIN. Also complemented by a comprehensive suite of services crafted to support and help your business at every stage of its growth.
Visit GoNomad today and take the first step towards a more efficient and prosperous business future.
