Whether you are a person from abroad who has migrated to US for the purpose of starting your own business or whether being a resident of US , to start your own business you need to apply for certain licenses and have to obtain certain permissions to start such business . One such license out of all is Employee Identification Number (EIN) . tO apply for an EIN in US is a necessity for every startup or self employed business in US because , it works like a tax identification number and represents the business as an employing authority in US. An EIN in US is a nine digit identification number issued by government of US to an business unit where the organisation would be requiring this registration number while filling an Income tax return or a payroll tax return online in US . Application of EIN in US is as simple as applying for a credit card .
If you want to know the entire procedure to apply for an EIN in US , do read this post carefully . The most important you should understand is that you have to apply for EIN to apply for a business loan in US .
Need of Employer Identification Number in US 2024 – EIN in US
The basic reason behind application of an EIN in US is that you need to comply with the tax provisions of US . It is necessary for every business identity in US to apply for an EIN , if it hires employees then registration of EIN is required for that identity . Only entities that are based on model of Sole properietorship and Single member LLCs are not required to apply for an EIN .
While the government of US , has also specified mandatory application of EIN in US for certain entities including :
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Trusts, except certain grantor-owned revocable trusts, IRAs and Exempt Organization Business Income Tax Returns.
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Businesses that pay excise, alcohol, tobacco or firearm taxes.
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Businesses with a Keogh plan.
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Estates.
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Real estate mortgage investment conduits.
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Non profit organizations.
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Farmers’ cooperatives.
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Plan administrators.
The other reason behind keeping application of EIN for an identity in US is that it becomes easy for the government of US to identity investment and income transactions of business with that of the individuals , and also to facilitate easy credit options to the business entities .
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Application of EIN in US 2024
Before a tax season comes , holding a business entity in US you should apply for an EIN in US with which you can instant raise for a business loan . The application process of an EIN goes through IRS Platform . While the basic procedure to apply for an employer identification number is as follows :
- Assure that you are eligible for application of EIN in US , for this you can take help of a commercial advisory which on the basis of your entity creation would identify the need for application of EIN .
- File all necessary information using form SS – 4 , with all required documents and proofs of the business .
- File Online Application on the IRS Portal for EIN . The facility provides 10 to 7 application facility online only .
- Once accepted and generated , you can receive your EIN Registration online or by fax also .
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Renew and Re-application of EIN in US 2024
Once you have received your EIN , you does not require to renew it any time as it is being allotted for entire life of the business entity . Also if in case you lost the EIN by somehow , you can again retrieve your EIN from the official web portal of IRS by entering your bank account details or by entering your business details on the platform .
There are some special rules regarding amendments in Employer identification number in US , where you have to apply for a new EIN if constitution or the structure of your entity changes . In case of bankruptcy also , you have apply for a new EIN , or if either you want to opt for a business structure as a sole proprietorship .
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Hope , after reading this post you would be able to apply for an EIN in US for your business identity . If you want any assistance in application of EIN in US , then you can comment and share your feedback comments down in the comment section below .