HomePersonal FinanceWhat Does the IRS Have to Do With an EIN?

What Does the IRS Have to Do With an EIN?

The IRS is responsible for providing businesses with an employer identification number. Most companies will need this nine-digit Federal tax ID number to operate legally. Even if your business is one of the few that doesn’t require an EIN, they still offer plenty of benefits that may have you decide to apply for one anyway.

Benefits of Applying for an EIN

Obtaining a tax ID number for your company has several benefits. In addition to allowing you to apply for necessary licenses and permits to operate legally, an EIN also allows you to apply for bank accounts, credit cards or other types of credit in your company’s name. It may also protect your personal assets from being seized if your business were to endure financial stress.

Who Needs an EIN?

Some companies must apply for a tax ID number. If your business has employees, is a partnership or corporation, or sells tobacco, firearms or alcohol, you must apply for an EIN. Other reasons you are required to apply include if your business uses a Keogh plan, withholds taxes on income it pays to non-resident aliens, or works with the following types of organizations:

  • Plan administrators
  • Non-profit organizations
  • Estates
  • Trusts
  • Mortgage invest conduits
  • Farmers’ cooperatives

How to Obtain an EIN for Your Business

Applying for your tax ID number is simple on IRS-EIN-Tax-ID. The application, which is available 24 hours a day, is easy to fill out and takes just a few minutes. Submit it immediately and you will likely receive a response in just a day or two. You can use an IRS EIN lookup to track your number. For more information about applying for an employer identification number, talk to the professionals at IRS EIN Tax ID Filing Service. They can assist you with the process whether you live in Portland, Maine, Portland, Oregon, or anywhere between.


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