Are you willing to form a business in the United States? If so, then you need to know that you will have to go through a process to obtain the EIN number. Just like you, there are several people who want to start a business in the United States, thus are asking how to get EIN number for taxes. There is no doubt that the US has a lot of benefits and opportunities for business owners to enjoy which is why so many individuals are willing to form the business in the United States.
If you are a beginner, then you may not know much about all the tax ID numbers along with EIN number. We will help you explore about it in detail as well as the procedure of obtaining it. So, all those who are trying to understand how to get EIN number for taxes should read through this blog carefully and explore the entire process of EIN number.
If you need help getting an EIN number for taxes, please call us at 407-344-1012, or email us at firstname.lastname@example.org.
The Three Active Tax ID Numbers
When you form a business in a country, you get to enjoy several opportunities and benefits. Along with that, you also have to pay off taxes for the business you are running. You have to pay those taxes using the tax ID numbers. Broadly speaking, there are three types of tax ID numbers in the United States to help you pay out the taxes. The tax ID number is given depending upon the status of the person. Whether you are a business owner in the United States or are an employed individual, you do have to pay off taxes for the country.
The tax ID numbers give you the opportunity to fulfill the tax obligations and pay off taxes timely. If you want to know how to get EIN number for taxes, you should first understand the different types of tax ID numbers to pay the taxes. Previously, there were five types of tax ID numbers. Two types have been discarded and we are left with only three active types of tax ID numbers as listed below.
· Social Security Number (SSN)
The social security number (SSN) is one of the main types of tax ID numbers provided to the residents of the United States and those who are currently employed somewhere. They first have to obtain E2 visa, then they have can obtain SSN number in order to pay off the taxes. In addition to this, the social security number is provided to the individuals by the Social Security Authority (SSA). If you are trying to explore how to get EIN number for taxes, you should always remember that the permanent residents of the United States are given these numbers.
On the contrary, the ones who are not residents or are temporary residents get social security number very rarely. Additionally, these are the numbers which allow the residents to do business in the United States. If you know any individual who wants the SSN number or you are one of them then you have to fill out the SS-5 form properly. After filling the form, you have to submit it to the United States Citizenship and Immigration Service (USCIS).
Once they counter check that you have provided correct and genuine information, and see all the documentation and everything else in order, they will provide you the SSN number timely. If you are novice or do not want to complicate things, make sure that you hire a credible lawyer who can help you obtaining the SSN number without any hassle.
· Individual Taxpayer Identification Number (ITIN)
In addition to the SSN number, there is another common type of tax ID number i.e. Individual Taxpayer Identification Number (ITIN). This number is given to those people who are not eligible to get the social security number or are non-residents. Generally, it is given to the dependent individuals. It has nine-digits. When foreign investors reside in the United States for the employment or business, they likely also want to call their families to live with them. Such people are considered as dependents and are also liable to pay the taxes. Hence, they are provided ITIN numbers.
The ITIN numbers are not like the SSN numbers and they do not provide employment opportunities to the dependents or individuals. These numbers do not make you eligible to start up your own business in the United States. They can just fulfill the tax obligation and enjoy the treaty benefits. Besides the dependents, the ITIN numbers are also issued to the ones who are unable to get the SSN numbers as they are temporary or non-residents.
Those who want to obtain the ITIN number have to fill the Form W-7 properly seeing all the details carefully. You can take help from a lawyer if you want to avoid the chances of rejection. Also, make sure that you attach all the documents with it as missing out a single document can also result in denial of ITIN number. So, make sure that you fill the information properly in order to obtain the ITIN number.
· Employer Identification Number (EIN)
All those who are pondering over how to get EIN number for taxes, should first understand what it actually is. EIN number is one of the tax ID numbers that is comprised of nine digits and is give to those individuals who are willing to form and develop a business in the United States. Additionally, the employer identification number (EIN) is not like the social security number and the individual taxpayer identification number (ITIN). SSN and ITIN numbers are provided to the people seeking for employment mostly, but EIN number is given to the individuals who want to be employers in the United States.
If you want to know about how to get EIN number for taxes, you should keep in mind that the Form SS-4 is the key in obtaining the EIN number. It is issued by the Internal Revenue Service to the employers or business entities in order to fulfill tax obligation, get the tax returns and enjoy the treaty benefits.
Despite the kind of organization you are willing to develop and direct such as partnership or LLC, by obtaining the EIN number, you can seamlessly form it. All those thinking about how to get EIN number for taxes, should know that it is a complicated procedure. Make sure you provide correct information and all the needed documents in the first attempt to get the EIN number without any hassle.
The Need of EIN Number – Who Requires It?
If you want to explore how to get EIN number for taxes, you should first know whether or not there is a need of getting one. Often, this happens when people do not really know the purpose of EIN number. If you or any person you know is confused about obtaining the EIN number, you should understand the reasons below.
Whether you are forming a big or a small business, you have to get an EIN number in order to fulfill the tax obligation. No matter which type of business it is, you need to pay off the taxes. Additionally, if you have employees working in your organization on a full time or a part time basis, you do have to obtain an EIN number for that purpose too. To fully understand when you require the EIN number, you should understand the following.
- You will be required to get the EIN number if there are taxes on the income for the aliens or non-residents.
- You will also have to obtain the EIN number when you are paying up to $600 to the workers.
- You will also have to get the EIN number when you need to file for the tobacco, firearms, alcohol, excise duty etc.
- You will also have to file for the EIN number if you are developing a corporation or partnership business.
- You will also have to get the number if you are operating real estate mortgage investment conduit, trusts, estates, no-profit organization and farmer’s co-operatives.
- You also need the EIN number when you have developed a Keogh plan for the business.
If any of the things are true in your case, then you definitely require the EIN number for the business and fulfilling the tax obligation. There are also certain types of businesses that do not require you to obtain the EIN number. On the basis of these requirements, you can make an appropriate decision. We hope, now you may have understood as to whether or not you require the EIN number.
The Need of EIN Number – Who Does Not Require It?
If you are willing to form a business in the United States, you do need to get an EIN number for the payment of taxes. But there are some people who also do not require the EIN number. So, all those who do not require getting the EIN number for an LLC are the ones who are running a single ownership business such as sole proprietorship business.
Some sole proprietorship businesses do need to get the EIN number, but only if they hire employees and generate employment in their business. Those sole-proprietorship businesses which are run alone by the business owners themselves, they do not require EIN number.
EIN Number – Helping Out With Your Business
When you obtain the EIN number, it helps you with your business too. While most of you may now know what it actually does, but some of the foreigners may not necessarily know what the EIN number can do for your business in the long run. Here are some things that can help you out with your business.
- The EIN number can help you in opening up a bank account for your business.
- The EIN number can also lend as a helping hand in applying for the credit card for your business.
- This number would also help you in developing and directing the business successfully.
- The EIN number will also help you furnish your contractors.
- You will also be able to reduce the chances of thefts and also enjoy privacy using the EIN number.
Kinds of LLCs You Can Open With the EIN Number
There are different kinds of businesses that can be opened with the EIN number. If you want to learn the basics of how to get EIN number for taxes, you would have to understand people likely form LLCs which has several types. Check out the different types of LLCs you can form in the United States using the EIN number. Check them out below.
- Multiple Member Limited Liability Company
- Single Member Limited Liability Company with employees
- Single Member Limited Liability Company with no employees
- Limited Liability Company Taxed as a Corporation
How to Get EIN Number for Taxes? – Discover the Detailed Procedure Here
If you want to learn the core of how to get EIN number for taxes, then you should be reading this section very carefully. Also, if you are interested in setting up a business in the United States, you will be able to form it discovering the entire procedure here. Check out the steps you need to get through in order to obtain the EIN number.
· Step # 1: Hire a Lawyer
The first thing all beginners should keep in mind is to hire a credible lawyer for the procedure. As a novice applicant, you may not be able to fulfill all the requirements flawlessly. This is why you should hire a credible lawyer so that they are able to help you get the EIN number for your tax obligation and other benefits seamlessly. Additionally, they will be acting as the third party representative for your business.
· Step # 2: Preparation of the Application
The second and one of the most important steps is the preparation of the application for your business. The EIN number can be obtained by the applicant by filling the Form SS-4. There are a lot of complex and complicated terms involved in the application form, so you need to make sure that you fill it properly. Also, there are some instructions written in the beginning which you need to follow. Besides, your lawyer will also help you in filling the application form properly.
· Step # 3: Sending the Application
Now that you have filled the application Form SS-4, it is time to send the application to the Internal Revenue Service (IRS). Broadly speaking, there are many ways to send the application to the IRS such as fax, mail, telephone and online. The first three are the traditional methods, nowadays, people likely opt for the online method as it is easier and do not create trouble too. With the help of the lawyer, you can decide which method you should opt for, sending the application.
· Receiving the EIN Number
After the Internal Revenue Service (IRS) has received the application form, they will then check whether the information provided in the application form is correct or not. You will receive the EIN number quickly and very soon if you have filled the form with all correct information. This can reduce the chances of denial as well as help you in obtaining the EIN number successfully. Since your credible lawyer is acting as the third party, they will be receiving the EIN number on behalf of you.
Now that you know how to get EIN number for taxes, we hope you will be able to make a wise decision and will be able to obtain it seamlessly. Make sure that you hire a credible lawyer in advance so that they can help you obtain the EIN number for tax obligation and other treaty benefits. In a nut shell, getting an EIN number has become a necessity for the business. We hope you will able to obtain the EIN number without any hassle with the steps mentioned in this blog. Good luck!
If you need help getting an EIN number for taxes, please call us at 407-344-1012, or email us at email@example.com.