- An EIN is a unique number that the IRS issues to all business types, including churches, corporations, government bodies, partnerships, nonprofit organizations, sole proprietors, trusts and estates. The nine-digit EIN has the format xx-xxxxxxx. Businesses generally need an EIN to report taxes. They also use the EIN to apply for credit, conduct banking and make investments under the business's name.
- The IRS requires you to get an EIN for your small business if you have employees; operate your business as a corporation or partnership; file employment, excise, alcohol, tobacco and firearms tax returns; or withhold taxes on non-wage income paid to a non-resident alien. Other circumstances that require an EIN include possession of a Keogh plan and work involving trusts, estates, real estate mortgage investment conduits, non-profits, farmer's cooperatives or plan administrators.
- If you are a small business undergoing a change, you may be required to get a new EIN. A sole proprietor may need to obtain an EIN if she is subject to a bankruptcy proceeding. Also, obtain an EIN if you incorporate; take in partners and operate as a partnership; or acquire an existing business that you operate as a sole proprietorship. If you are a partnership, you'll need a new EIN if you incorporate, change to a sole proprietorship or end an old partnership and start a new one.
- The IRS's preferred method to apply for an EIN is online, but you can apply by phone, mail or fax. To apply by phone, call the IRS at 800-829-4933. To apply by fax or mail, fill out form SS-4 and fax or mail the application to the address where you normally file your tax returns. Applying for an EIN is free.
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