When registering a company in the US, most business owners may fail to register for an employer identification number (EIN), forgetting that they will need it sooner or later. An EIN is required for federal tax filings, opening a bank account, applying for business licenses or permits, submitting BOI reports, and meeting other compliance requirements.
An EIN is essential for any business to stay compliant and enhance credibility. The number needs to be obtained during the formation of your company or when hiring employees. This process can be complex, especially with budding entrepreneurs or those new to the US legal system and IRS procedures. BusinAssist’s EIN application services are fast and efficient, offering support to US and non-US residents.
Our process is hassle-free. You will only need to tell us about your business. Using your information, we will fill out and file your EIN application directly with the IRS and send it to your email once it is approved.
Why get an EIN?
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Compliance requirement
As the name suggests, a federal tax ID number is legally required to complete tax returns and submit the Beneficial Ownership Report.
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Hire employees
An EIN is required to process payroll tax reporting. You must apply if you plan to hire employees immediately or within the next 12 months.
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Open a US business bank account
When opening a bank account for your business in the US, you'll be required to submit an EIN.
EIN Application Package
What is an EIN?
The federal tax ID number (EIN) is a unique code assigned to businesses in the USA. The nine-digit ID number is formatted as XX-XXXXXXX. Whether you own an LLC, sole proprietorship, corporation, or partnership, you will need an EIN to pay your employees, pay taxes, open a business bank account, and so on.
An EIN is obtained from the Internal Revenue Service (IRS), which uses it to identify businesses for tax purposes. The number has no expiration date and cannot be assigned to another business.
Types of businesses that need an EIN
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Sole Proprietorship
• You have employees or plan to hire them in the next 12 months.
• If the business must file alcohol or firearm tax returns.
• Businesses with a tax-deferred retirement plan.
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Limited Liability Company (LLC)
• Multimember LLC with more than one member. An EIN will be required for tax purposes.
• Single-LLC that is foreign-owned, with employees, or being taxed as a corporation.
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Corporation or Partnership
• Corporations and partnerships must obtain an EIN even if it doesn’t have employees.
Frequently Asked Questions
What does it mean to have an EIN?
Having an EIN means your business can file for taxes, hire employees, open a business bank account, and easily submit a BOI report. It also enhances the credibility of your business, building trust with customers and suppliers.
Do EIN and SSN mean the same thing?
Both are used as tax identification; however, an SSN is used to file taxes for sole proprietors and single-member LLCs with no employees. In contrast, an EIN is required by most businesses that need or plan to hire employees.
Is an SSN necessary to obtain an EIN?
You do not require an SSN to obtain an EIN. If US residents have an SSN, they can include it in their application; however, non-US residents do not need it for the EIN application process.
What are the requirements for getting an EIN?
You will need details of the company such as:
- Business structure
- Legal name of the business
- Address
- Country of incorporation
- Personal details of the company owner, partner, and principal officer
- Officials' personal Social Security numbers
- Date of business formation
- Business activities
BusinAssist will further ask for ID documents for the company officials (the company director, business owner, and members for verification).
Do foreign companies need an EIN?
Yes, foreign companies doing business and earning in the US must apply for an EIN without a US address, SSN, or ITIN.
How long does the EIN application process take?
The time may vary depending on the residency status and the type of business structure. A US resident’s application can take 1 to 2 business days. For non-residents, the application process may take 1 to 2 weeks since submission is done via fax or mail.
What is your cancellation and refund policy for the EIN application service?
You can cancel the service before we submit your application to the IRS. We will charge a discretionary fee of $10 for the work done in the preparation before refunding the balance to you. If you choose to cancel the service after the application is submitted to the IRS, no refund can be claimed even after changing your mind on applying for an EIN.
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