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Applying for a tax ID number, also known as an employer identification number (EIN) , is a simple process that can be completed online, by fax, or by mail. But the easiest method is always going to be to send in a form online, usually through a third-party EIN company.

Let’s take a look at why a non-profit organization might need an EIN and how they can get one.

What is a Non-Profit Organization?

A non-profit organization is defined as a company that uses its surplus revenue to achieve its goals, rather than distributing it among shareholders. Non-profits can be religious, charitable, educational, scientific, or literary in nature. They can also be political organizations or sports clubs.

Why Does a Non-Profit Organization Need an EIN?

There are a few reasons why a non-profit might need an EIN. The most common reason is to open a business bank account. Many banks will require an EIN in order to open up an account for your organization.

An EIN is also required if you have employees. You’ll need to withhold taxes from their paychecks and file quarterly tax forms. An EIN is also needed to apply for a business license or permit.

EINs may also be needed to purchase goods tax-free. Many vendors who sell to non-profits will require an EIN in order to extend the tax exemption.

How to Apply for an EIN

As we mentioned earlier, the easiest way to apply for an EIN is online. You can also apply by fax or mail, but the online method is going to be the quickest.

Here’s the step-by-step process:

1. Gather the required information. You’ll need the name and address of your organization, as well as the names and Social Security numbers of your principal officers.
2. Choose an EIN company. There are a few different companies that can help you obtain an EIN.
3. Complete the online application. This will usually involve filling out a short form with your organization’s information.
4. Receive your EIN. Once your application has been processed, you’ll receive your EIN via email. Make sure to keep this in a safe place, as you’ll need it for tax purposes.

Applying for a tax ID number should only take minutes and you should receive your EIN within a few hours.

What Happens If Your EIN is Rejected?

If you apply for an EIN and your application is rejected, don’t worry. This happens from time to time. The most common reason for rejection is that the Social Security number of one of your principal officers is entered incorrectly.

If you do receive a rejection, simply resubmit your application with the correct information. You should receive your EIN within a few hours.

This is another reason why it’s best to do this online. If you do it online, you’ll be able to reapply within minutes. If you do it through fax or mail, you may not even know that your EIN has been rejected until much later.

Do You Need an EIN Even If You Aren’t For-Profit?

If you’re not sure whether your organization needs an EIN, the safest bet is to apply for one. It’s a simple process and it’s free. Even if you don’t need an EIN right now, it’s better to have one on hand in case you need it in the future.

EINs are not just for for-profit enterprises, they’re also for a host of other things, such as filing taxes, opening bank accounts, and hiring employees.

Do You Need an EIN Even If You Don’t Have Employees?

If you don’t have any employees, you may not need an EIN. However, there are certain situations where you might still need one.

For example, if you’re going to open a business bank account, the bank will probably require an EIN.

An EIN is a lot like a social security number for a business. So, if your non-profit organization ever needs a credit check or to take out loans, you’ll still need an EIN.

Can You Get an EIN Later?

You can apply for an EIN at any time. However, if you’re already running your non-profit organization without one, you can wait until you actually need it. While there’s no harm in not having an EIN, there could be harm introduced if you find that you need one and need to wait to get one. For instance, if you need to get a loan but find out that you have to apply for an EIN first.

It doesn’t cost anything to maintain your EIN. You apply for the EIN once and it’s yours forever, as long as your entity exists and remains active. So, there’s no real reason not to get an EIN as early as possible, even if you don’t know whether you’ll need it.

Are There Limits on EINs?

No, there are no limits on the number of EINs that a single organization can have. However, each EIN can only be used for one account. So if you have multiple businesses, you’ll need to get an EIN for each one.

The only potential limit to an EIN is the fact that you will need to wait between getting multiple EINs if you need to get a lot of them in one day. You can only have a few EINs assigned to you each day if you’re acting as a representative on each form.

Conclusion: Get Your EIN Right Away

As a non-profit organization, you should get your EIN soon after creating your entity. This will make it much easier to open a bank account and apply for licenses and permits. Start applying by filling out an application online today.

Nearly everyone who owns a business needs a tax ID number for their business. This number is called an employer identification number (EIN), and it’s critical for a wide range of business functions including opening a business bank account, filing employee tax forms, and more.

To help you out, we’ve created a guide on how to apply for an EIN number. This post covers basic concepts related to EINs and outlines the process of how to obtain an EIN number.

Frequently Asked Questions

People who are launching a business for the first time have a lot of questions about EINs. We’ve collected some of the most common questions and included their answers in this section.

Is A Tax ID Number The Same as an EIN?

An employment identification number is a type of tax ID number. There are different tax ID numbers for different situations. For instance, most US citizens and permanent residents use their Social Security Number as their taxpayer identification Number. Similarly, business owners use the EIN as the tax ID for their business.

Are There Other Common Acronyms for EINs?

There are several different names for EINs. Sometimes, people call EINs Federal Employer Identification Numbers (FEIN). That is because the federal government issues these numbers. Your business may get a different number from your state for state withholding or sales tax accounts. Others refer to these numbers as business tax IDs or federal tax identification numbers (FTIN).

Do I Need a Tax ID Number?

If you’re a business owner, you need a tax ID number. The tax ID number or EIN serves as a unique identifier for your business. For banking purposes, this nine-digit number is more accurate than using your business’s name, and many banks require it for business loans and accounts. It is also required on all employee tax forms, corporate tax returns, partnership returns, and many other government forms.

How Do I Get an Employer Identification Number?

To apply for an EIN number, you can use Form SS-4. You can also hire a tax professional to help you, but the fees can be high. Alternatively, you can apply online. In most cases, an online EIN application is the easiest and fastest option.

Do I Need an EIN If I’m Self-Employed?

Self-employed people often need EINs but not always. If you hire an employee, you need an EIN. You also need an EIN if you hire an independent contractor subject to withholding. If you want to separate your business and personal finances, most banks require an EIN if you want to open an account or apply for a loan in your business’s name. Even if you don’t need an EIN now, you may want to apply for one so that it’s ready to go when you need it.

How Do I Look Up My EIN Number?

You can look up your business’s EIN by finding the confirmation letter you received when you requested the number. You can also look for the number on old tax or bank forms where you wrote down the number. It may be on tax notices or business licenses from the government, or you can pull a credit report for your business and see if it shows your EIN. If you cannot find your EIN on any of your business paperwork, you can call the government and request to receive the number.

Apply For A Tax ID (EIN) Number

Now that you understand the basics, you’re probably wondering how to get an EIN number. You can apply for an EIN number through the mail, fax, or online. If your company is based in a foreign country, you can complete the EIN application over the phone, but generally, you must call Monday through Friday during business hours.

Applying for this taxpayer identification number online is the fastest and easiest option. However, you still need to complete several steps.

7 Steps to Help You Apply for an EIN Number Online

To help you prepare, we’ve outlined a step-by-step application process.

1. Provide contact details about your business. You need the legal name, the doing-business-as (DBA) name, and the address of your business.
2. Note the responsible party. For instance, for sole proprietorships, the sole proprietor is the responsible party. For partnerships, it’s one of the partners. In all cases, the responsible party must be an individual. The responsible party cannot be a business entity.
3. List the taxpayer ID of the responsible person. Depending on their unique status, this may be a Social Security Number (SSN), an Individual Tax Identification Number (ITIN), or an EIN.
4. Note whether or not the business is a limited liability company (LLC). Sole proprietors, partnerships, and S-corps can also register as an LLC. The other business structures are for tax purposes, while an LLC is primarily for legal purposes. An LLC is a state registration, and you must note when you filed your LLC on the EIN application.
5. Choose your type of business structure. You may select from sole prop, partnership, corporation, personal services corporation, church, church-controlled organization, or other non-profit organization. However, it’s not just businesses that use this number. You may also choose from estate, plan administrator, trust, military/National Guard, farmer’s cooperative, state/local government, federal government, or Indian tribal government, if applicable.
6. Select the reason for applying. Most businesses use this number for multiple purposes. Just choose the option that’s the closest to your immediate need.
7. Make estimates about your number of employees. You can also check a box if you want to pay employment taxes annually instead of quarterly, but you can only qualify to do this if you expect to pay less than $1,000 in payroll taxes throughout the year.

Get Your EIN Number Right Away

Now that you know how to get an EIN number, it’s time to gather your details and start applying. As soon as you receive the number, you can start using it. There is no delay.

When you complete the application process online, you can often get your tax ID number right away. In contrast, phone and fax applications can take several days, and mail applications can take weeks.

When you’re a business owner, time is money. Save time by applying for an EIN online. Then, you’re ready to apply for loans, open bank accounts, file tax forms, and handle everything else that requires this number.

Almost all businesses need an employer identification number (EIN). This is a nine-digit number that identifies your business to banks and on government forms. However, the EIN application process varies depending on the structure of your business. To help you out, this guide explains how to obtain an EIN for a sole proprietorship.

Frequently Asked Questions

New business owners have all kinds of questions. They have to deal with countless challenges when they open their businesses. Luckily, obtaining an EIN is relatively simple. To show you how easy the process is, we put together answers to some of the most frequently asked questions about this topic.

What Is A Sole Proprietor?

A sole proprietor owns their own business. They don’t have partners or shareholders.

When they file their tax return, they generally report the profits and losses on a Schedule C that they include with their personal tax return. Business entities that fall into this category include unincorporated small businesses and freelancers.

When Does a Sole Proprietor Need An EIN?

A sole proprietor needs an EIN so that they can hire employees. They also need one if they’re going to collect excise taxes. In most cases, sole proprietorships also need an EIN for banking purposes, including opening a business banking account or applying for loans in the business’s name.

Why Apply For An EIN If It Isn’t Required?

Even if you don’t need an EIN right away, your business will need one in the future. By applying for an EIN when you open your business, you ensure you have it when you need it. Then, you don’t have to deal with a delay when you want to hire an employee, apply for a loan, or do other tasks that require an EIN.

How Many EINs Can a Sole Proprietor Have?

A sole proprietorship (the business) only needs one EIN. But a sole proprietor (the owner) can have multiple EINs. They can have an EIN for every business they own. However, you can only apply for one EIN per day. If you need multiple EINs, you will need to apply on several different days.

How Long Does It Take To Get An EIN For A Sole Proprietorship?

Processing time for EIN applications varies based on how you apply. If you apply for this taxpayer identification number through the mail, it can take four to six weeks. It may take longer if the Internal Revenue Service is backlogged. If you apply using fax, the IRS will mail you a number in a couple of weeks.

The fastest option is EIN applications online. If you apply online, you should get the number that day or the next business day.

Apply For A Sole Proprietor Tax ID (EIN) Number Online

The online application is the fastest way to get an EIN for a sole proprietorship. Here is an overview of the steps you need to follow to get this number.

1. Provide the legal and DBA names of your sole proprietorship.

The legal name of many sole proprietorships is the name of the owner. Then, you may also have a doing-business-as name that you use on your signage and marketing materials. Make sure you understand what your legal name is before you start the application.

2. List yourself as the responsible party.

You must list a responsible party and their Social Security number. Even if you want an accountant to file the EIN application form for you, you will still be listed as the responsible party.

3. State why you want the EIN.

You need to explain why you want an EIN. For instance, if you need the number to open a business banking account, you will note that as your reason. Similarly, if you’re hiring a new employee, you will list that as your return.

4. Specify your type of business entity.

The application lists a variety of business entities. You should choose sole proprietorship when you fill out the online application. If you have registered your business as an LLC, you are still a sole prop for tax purposes. As a result, you should mark sole prop as your business entity. Then, you should note that you’re an LLC and the date you registered the LLC.

5. Share your principal line of business.

You will also need to note your industry and describe your main products or services. You don’t have to be overly detailed in this section. You just need to note the basics. For example, you might note hospitality if you own a hotel.

6. Note your number of employees.

Even if you don’t have any employees now, you need to estimate how many you’re going to hire over the next year. You should note the number of general, household, and agricultural employees on your form.

 7. Declare if you want to file payroll tax returns annually.

In most cases, you will file your payroll returns quarterly, but if you think that you will pay less than $1,000 in payroll tax over the next year, you can use your EIN application to note that you want to file payroll returns annually.

Once you put in all the required details, you’re ready to submit the application. Then, you should receive your EIN very quickly. It will be auto-generated on your screen, and you don’t have to wait for the mail to come to receive your EIN number.

A limited liability company (LLC) gives you advantages over other types of business structures. When you register your business as an LLC, you separate yourself from the business entity, and by extension, you limit your liability for the business’s debts, lawsuits, or other liabilities.

The unique element of an LLC is that it’s a legal entity, not a tax entity. For tax purposes, your business can be a sole proprietorship (disregarded entity), a partnership, or an S-corp, but for legal purposes, it can be an LLC. However, to operate your LLC, you almost always need an EIN.

To help you out, this guide explains how to apply for employer identification numbers (EINs) for LLCs. First, we cover common questions about LLCs and EINs. Then, we dive into the process of how to obtain an EIN.

Frequently Asked Questions

LLC business owners are required to obtain an EIN for many different reasons. You need an EIN to open a business bank account and apply for loans. You also need it for a range of tax purposes including employee tax forms, excise tax returns, and partnership and S-corp tax returns.

We’ve gathered insights on some of the most commonly asked questions about LLCs and employer identification numbers (EIN).

What Are the Different LLC Types?

There are several types of LLCs including:

• Single-member LLCs that have one owner
• Multi-member LLCs with multiple owners that can include both people and other business entities
• Domestic LLCs that are formed in the United States
• Foreign LLCs that are formed outside of the United States
• Series LLCs which are multi-member LLCs where the members are LLCs
• Low-profit LLCs that exist for charitable or educational purposes and have restricted profits
• Professional LLCs (PLLCs) for professionals who require licensure such as accountants, legal advisors, and medical providers

LLCs are governed by state law. This means that there are different types of LLCs in different states. For instance, Nevada offers a restricted LLC that has special provisions for people who own multiple properties, and California is one of the few states that doesn’t allow PLLCs.

Your LLC may fall into multiple categories. For instance, it may be both a single-member LLC and a domestic LLC. Or it could be a multi-member PLLC.

Does an LLC Need an EIN?

All LLCs need an EIN if they have employees or file excise tax returns. Whether they have employees or not, multi-member LLCs also need an EIN so that they can file partnership or corporate tax forms.

Even if they don’t have employees or file excise taxes, single member LLCs need an EIN if they file Form 8832 and elect to be taxed as a corporation. LLCs may also need an EIN to open a business bank account in many states.

Should I Get an EIN for My LLC?

Your LLC should get an EIN. It is required for most LLCs. In particular, you must get this number before you hire employees and if you collect excise tax. Many banks also require businesses to have EINs to open an account, take out a credit card, or apply for a loan.

Why Apply For A Tax ID Number If It Isn’t Required?

If you don’t need an EIN now, you may need one in the future. Applying for an EIN proactively ensures that you have one when you need it. Then, you can jump into hiring employees or taking care of banking without going through a delay to obtain an EIN.

How Do I Obtain an EIN for My LLC?

You can apply for an EIN tax ID number for your LLC through the mail or by fax using Form SS4. If you are in a foreign country, you can apply over the phone. The easiest option is to apply for an EIN online

Apply For An Employer Identification Number For LLCs Online

To apply for a tax ID number for your LLC, you simply need to work through the following questions. Once you’ve gathered your answers, you have everything you need to apply for an LLC EIN online.

• What is the name of your LLC?
• Do you have a separate “doing business as” (DBA) name?
• What is your business address?
• Who is the responsible person? This must be one of the LLC owners, and it has to be a person, not a business entity or other LLC.
• What is the Social Security Number (SSN) of the responsible party? If they don’t have a SSN, you can use their individual taxpayer ID number (ITIN).
• How many members does your LLC have?
• What is your business structure?
• If you have a corporation, when were you incorporated?
• Why are you applying for an EIN? Potential answers include starting a new business, buying an existing business, hiring employees, or banking purposes.
• What date did your business start?
• How many employees do you have?
• Do you have any agricultural or household employees?
• What is your LLC’s principal business activity?

After you’ve answered these questions, you will digitally sign the online EIN application. Then, you’ll submit it. Keep in mind, however, that if you need multiple EINs, you can only get one per day. In most cases, you should get your LLC EIN very quickly. Often, you get the number the day that you apply, and you can start using the LLC instantly.

An EIN number is a nine-digit number that is assigned by the IRS. It is used to identify businesses and other entities for tax purposes.

EIN numbers are also sometimes referred to as “taxpayer identification numbers” or “TINs.”

Businesses that are required to have an EIN include corporations, partnerships, limited liability companies, and sole proprietorships. Some nonprofit organizations are also required to have an EIN.

Applying for an EIN is a relatively simple process. You can apply for one online and receive one within 24 hours.

Do I Need an EIN?

If you are starting a business or nonprofit organization, you will need to obtain an EIN.

You will also need an EIN if you are opening a bank account for your business, applying for business licenses or permits, or filing tax returns.

You will definitely need an EIN if you intend to hire people. An EIN can also help you get wholesale products for your business.

You don’t need an EIN if you’re an individual running a business as a Schedule C sole proprietor.

How Do I Get an EIN Online?

It’s easy to apply for an EIN online. You can do so through a private company that provides EIN application services.

Applying for an EIN online is simple and only takes a few minutes. Just follow the instructions on the website and have your required information ready.

You will need to provide your business name and address, the names of the business owners, the type of business entity, and other basic information.

Once you have submitted your application, you will receive your EIN within 24 hours.

How Can I Get an EIN by Phone?

You can also apply for an EIN by phone. When applying for an EIN by phone, you will be required to provide the same information as you would when applying online. But be aware that this could take a few active hours on the phone. It’s almost always better to apply for an EIN online.

How Do I Get an EIN by Mail?

You can apply for an EIN by mail, but it’s not recommended. Applying for an EIN by mail will take significantly longer- about 4 to 6 weeks- and is more complicated than applying online or by phone. If anything is wrong on your form, you’ll find out 4 to 6 weeks later and will need to begin the process from scratch.

How Else Can I Get an EIN?

Technically, you can get an EIN through fax. But people rarely do this because it takes a long time, you need access to a fax machine, and you may not be aware of the status of your EIN for some time.

What If I Forget My EIN?

If you forget your EIN, there are a few ways to find it. The easiest way is to look at any tax return that you have filed for your business.

Your EIN should be listed on the return, usually near the top. If you can’t find it there, you can also contact the IRS directly and ask for your EIN.

You will need to provide them with some basic information about your business, such as your business name and address. The IRS may also ask for your Social Security number or the names of the business owners.

Once you have your EIN, be sure to keep it in a safe place. You will need it any time you file taxes or apply for business licenses or permits.

Is My EIN My SSN?

No, your EIN is not your SSN. Your EIN is a nine-digit number that is assigned by the IRS. Your SSN is a nine-digit number that is assigned by the Social Security Administration.

You will need to provide your EIN when you file taxes or apply for business licenses or permits. You will need to provide your SSN when you apply for a credit card, loan, or other financial product.

That being said, there are forms that will ask for an EIN or an SSN. If you’re a sole proprietor filing a schedule C, your SSN can be used in place of your EIN. But they aren’t the same thing.

Can I Change My EIN?

You can file to change your EIN if your business structure has changed. But changing an EIN can be a complicated process and it’s usually not necessary. If you don’t have a good reason for changing your EIN, it likely will not be allowed.

How Long Does an EIN Last?

An EIN is a permanent identifier; it will last as long as the business does. The goal of an EIN is similar to that of a SSN. Not only does it make it possible for you to do business, but it also makes it possible for the government to track your business. This enables the tracking of things like sales taxes and employment taxes. An EIN can also contribute to your organization’s credit score, which is a separate rating from your own credit score and which can help your business procure funding.

Can I Get an EIN If I’m Not a US Resident?

Yes, you can still get an EIN even if you’re not a US resident. The process is the same as it is for US residents.

You will just need to provide your business name and address, the names of the business owners, the type of business entity, and other basic information.

An EIN is an important part of starting and running a business. Be sure to get one as soon as you can so you can get started on the right foot. You can file for an EIN online today.
 

How to Get a Tax ID (EIN) Number Online

There are a few different ways that you can get a tax ID number for your business. The most common way to get a tax ID number is to apply for one online. You can use an online tax ID service to get an EIN within a day by applying online. Once you have your EIN in hand, you can immediately start to use it.

To apply for a tax ID online, you’ll need to fill out an application and submit it. Once the application is approved, you will be given a tax ID number. If the application is incomplete or you need to add information, you’ll just have to file your application again.

What Documents Do You Need to Get a Tax ID Online?

In order to get a tax ID number online, you will need to have the following documents:

• Your business name and address
• The names of all owners and officers of the business
• The business type (e.g., LLC, corporation, partnership)
• The reason for applying for a tax ID number
• Your Social Security number or Individual Taxpayer Identification Number

Either an SSN or an ITIN will work, but they aren’t the same thing. Either way, you’ll get an EIN.

How Long Will It Take to Get a Tax ID Online?

It usually takes less than a day to get a tax ID number online. However, if you apply for an EIN through the mail, it can take up to six weeks to receive your number. If you apply over the phone, it may take all day. Likewise, filing through fax can take several days or even weeks to process.

What Are the Alternatives to Getting a Tax ID Online?

If you are not comfortable applying for a tax ID number online, you can also apply for one by mail. To do this, you will need to download and print an application form. Once you have completed the application, you will need to send it in. It will be processed and your tax ID will be sent within four to six weeks. Note that if you don’t receive your tax ID number, it may be that there’s an issue with the form. If you have to file the form again, you’ll have to wait again.

Why Do You Need an EIN?

As a business owner, you will need to have an EIN for many different reasons. For example, you will need an EIN to open a bank account in the name of your business. You will also need an EIN to file your taxes. In addition, you may need an EIN if you plan to hire employees.

An EIN is also sometimes referred to as a Tax Identification Number (TIN). However, an EIN is different from a Social Security Number (SSN). An SSN is used to track an individual’s earnings and taxes. An EIN is used to track a business’s taxes.

You can apply for an EIN online, by mail, or by fax. The easiest and quickest way to get an EIN is to apply for one online.

Does Every Business Need an EIN?

No, not every business needs an EIN. However, most businesses will need one. The only businesses that don’t need an EIN are sole proprietorships with no employees. If you have a sole proprietorship with no employees, you can use your SSN as your Tax Identification Number.

You may also need an EIN to get tax-free goods for resale.

If you are a sole proprietor with employees, or if you have a partnership, corporation, or LLC, you will need to get an EIN.

How Much Does it Cost to Get an EIN?

The cost to file for an EIN can vary depending on the service you use, but the cost shouldn’t be significant.

Do You Need to be a Citizen to Get an EIN?

No, you don’t need to be a citizen to get an EIN. You can apply for an EIN even if you are not a citizen of the United States.

When Do You Need to Get Your EIN?

You should get your EIN as soon as you start your business. This way, you will have it when you need it. Otherwise, you could find yourself missing deadlines as you wait for your EIN to process.

How Should You Use Your EIN?

Once you have your EIN, you can use it to open a bank account, file your taxes, and hire employees. You will need to give your EIN to your bank when you open a business account. You will also need to use your EIN when you file your taxes. When you hire employees, you will need to give them your EIN so that they can fill out their tax forms correctly.

If you’re a sole proprietor, sometimes your SSN or EIN may be used interchangeably. But it’s better to use your EIN when you can, as this represents your business and your business activity.

Common Mistakes When Filing for an EIN

The most common mistake is forgetting to sign the application. If you’re filing online, you may click the wrong button, or may not save the signed copy of the digital document.

Another common mistake is putting the wrong business address on the application. This can cause your EIN to be delayed, as well.

Make sure to double-check the information on your application before you submit it. This will help to ensure that you don’t make any mistakes that could delay your EIN.

Conclusion

Getting a tax ID number online is the most common and efficient way to get an EIN. It’s fast, easy, and you can have your number in hand within a day. However, if you’re not comfortable applying online, you can also apply by mail. An EIN is essential to many of the processes of operating a business and you should get an EIN when you create your business.

A tax ID number is a unique nine-digit number that represents people and other entities to the Internal Revenue Services (IRS). The IRS as well as state revenue departments use tax ID numbers to identify people and other entities. To help you understand this concept, this guide looks at the different types of tax ID numbers and explains how they are used.

Why Do Tax Agencies Use Tax ID Numbers?

Tax agencies use tax ID numbers to ensure that they are dealing with the correct entity. For example, there are hundreds or even thousands of people with names such as John Smith, Mohammed Kahn, and Jenny Wong. If people with common names used their names on tax forms, the government would not be able to accurately identify them even if it used other identifiers such as their address or place of birth.

In contrast, all of these people have a unique tax ID number. When they put that number on a form, the tax agency knows exactly who has filed the form. If a third party such as an employer files a tax form with the person’s nine-digit tax ID on it, the government can also tell exactly whom the form has been submitted on behalf of.

What Are the Types of Tax ID Numbers?

Tax ID numbers are not just used by people. Businesses, estates, trusts, and other entities also use these numbers. Here are the main types of tax ID numbers and a brief overview of who or what uses them:

• Social Security Numbers (SSN) — Used by U.S. citizens and foreign residents.
• Employer Identification Number (EIN) — Used by employers such as sole proprietorships, partnerships, and corporations, but also used by trusts and estates.
• Individual Taxpayer Identification Number (ITIN) — Used by people who need a tax ID number but who don’t qualify for a Social Security Number. For instance, if you are a foreign national who does not reside in the United States, you may need to file a tax return if you have U.S. sourced income. To do so, you will need an ITIN.
• Taxpayer Identification Number for Pending U.S. Adoptions (ATIN) — Used by infants and children who are being adopted from other countries. Eventually, these people get their own Social Security Numbers.
• Preparer Taxpayer Identification Number (PTIN) — Used by people who prepare taxes professionally so that the IRS can track who completed and filed the forms for another taxpayer.

Although all of these tax ID numbers are used by different types of entities, they have one thing in common. They are always completely unique. If you have a tax ID, no one else will have that same tax ID.

How Long Are Tax IDs?

Each of these five tax ID numbers has nine characters. An SSN, EIN, ITIN, and ATIN each have nine numbers. A PTIN, in contrast, has the letter “P” followed by nine numbers. They are written differently though.

What Is the Format of a Tax ID Number?

Traditionally, SSNs, ITINs, and ATINs are as follows: XXX-XX-XXXX. EINs appear as so: XX-XXXXXXX. Finally, PTINs look like this: PXXXXXXXX. When you enter these numbers on forms or other documents, you should expect to use these formats.

How Do You Obtain a Tax ID Number?

There are different ways to obtain a tax ID number. The process varies based on the situation. For instance, when someone gives birth to a baby in the United States, the hospital often helps with the paperwork and sends the request for a Social Security Number to the Social Security Administration.

If someone immigrates to the United States, they will obtain their tax ID number as they work through the immigration process, and if someone is adopting a baby from another country, they will also obtain the tax ID as they work through that process.

A business, trust, or estate that needs an EIN will need to apply for it from the government. Similarly, a professional tax preparer will also need to request the tax preparer’s tax ID from the government.

What Do You Need to Obtain a Tax ID Number?

The requirements for obtaining a tax ID also vary based on the situation and the type of tax ID number that you need. Essentially, when you apply for a tax ID number, you need to prove that you meet the requirements to obtain that number. To do that, you may need to provide a range of different supporting documents.

How Do You Use a Tax ID Number?

Once you have a tax ID number, you will use it in a wide range of ways. As indicated above, you will use your tax ID number on tax forms. For example, if you submit a tax return for yourself or your business, you will use your personal or business tax ID number.

Similarly, if someone reports information about you on a tax form, they will also use your tax ID. For example, when a mortgage company sends out a statement of interest paid, they will put your tax ID number on the statement. When your employer issues a wage statement for you, they will also put your tax ID on the form.

However, tax IDs aren’t just for tax forms. They are often used as identifiers for other services such as the following:

• Setting up utility or communication accounts — For instance, your phone company may request a Social Security Number.
• Applying for loans — Your bank, for example, will want an EIN before issuing a loan to your business.
• Opening bank accounts — The bank will also want a tax ID if you need to open an account.
• Managing Social Security and Medicare benefits — These programs use your tax ID to identify you, track your contributions, and disburse your benefits.

These are just a few examples. As you use your tax ID, you may notice even more scenarios where it is required.

A tax ID is critical for people, businesses, and other entities. You need a tax ID for a vast range of essential business, personal, and tax functions. They help to eliminate confusion and safeguard your identity.

Are you an estate administrator or a surviving spouse? Are you dealing with an estate that earned income? Or is it likely to earn income in the upcoming year? Then, you need to apply for a tax identification number for the estate.

Luckily, it’s easier to apply for an EIN for an estate. It’s definitely easier than making a tabouli salad recipe. Ready to get started? Then, keep reading for a look at the process to obtain a tax ID for an estate.

Frequently Asked Questions

We hear a lot of the same questions about how to apply for an EIN for an estate. To help you out, we’ve put together some of the frequently asked questions we hear when we work with an estate administrator or anyone else handling an estate.

What Is an Estate?

An estate is the sum of everything someone owns and all of the debts they owe. While someone is alive, they personally own their assets, and they have personal liability for their debts. When they pass away, their estate owns their assets and has liability for their debts.

Are Estates Required To Obtain A Tax ID (EIN) Number?

Generally, an estate only needs to obtain a tax ID number if it has taxable income. If so, it needs to file Form 1041 (US Income Tax Return for Estates and Trusts). To file this form, the estate needs an EIN tax identification number.

For instance, if the estate owns a building that earns rental income, the estate has taxable income. As a result, it must file the estate income tax return, and to do so, it needs an EIN.

How Long Does It Take To Get A Tax ID Number For An Estate?

If you apply for an EIN for an estate online, you can usually get the number the same day or shortly thereafter. If you fax in a request for an EIN, you should expect to wait a week or two. If you use snail mail, the process can take six to eight weeks

Apply For An Employer Identification Number For Estates Online

The fastest way to get an EIN number for an estate is to apply online. With an online application, you must provide the same information as you do with a paper application, but you can do the process from the convenience of your home or office. You don’t have to find a fax machine or run to the post office. Here are the steps.

1. Decide If Your Estate Needs an EIN.

As indicated above, estates usually only need an EIN if they are going to file an estate income tax return. To do this, you use Form 1041.

This is different from filing an estate tax return. These are separate returns. An estate return is Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return). To file this form, you only need the Social Security Number of the decedent. You might have to include EINs from businesses, trusts, or assets that the decedent was involved with, but you will not need an estate EIN for this form.

Form 1041 is also different from the last tax return of a deceased person. If someone dies in the middle of a tax year, their surviving spouse or whoever takes care of their matters will usually just file a 1040 (Individual Income Tax Return) and note that the taxpayer died during the year.

2. Gather information about the estate.

Before you start the online application for your estate’s EIN, you should get all the details that you need. Being ready helps to ensure that the online application doesn’t time out. It also saves you time and frustration. Here is what you need:

• Name of the decedent
• Name of the responsible party — that’s the estate administrator
• Tax ID number (Social Security Number) of the responsible party
• Address of the estate — you can have the mail sent to the personal representative of the estate
• Social Security Number of the decedent
• Reason that you’re applying for an EIN
• If the estate has employees
• If you expect to pay less than $1,000 in payroll tax for your employees

These are all the basic details you will need to complete your application.

3. Fill Out the Online Application for Estate EIN

Now that you have everything you need,fill out the questions to the best of your ability. Sometimes, it might feel like there’s more than one answer. For instance, in the section about why you need an EIN, you may want to note banking purposes if you need to open an account to deposit the estate’s income. However, you may also want to choose “other” and then note that you need an EIN for Form 1041. Just choose the option that is closest to the reason you’re currently applying.

That’s it. Now you have all the details you need to apply. To be on the safe side, you should apply as soon as possible. Then, you will have the EIN when you’re ready to file your 1041 form.

Opening a bank account for a corporation can be a little more involved than opening a personal bank account. To open a bank account for a corporation, you should first have your corporation documents (such as your state registration), your employer identification number, and your articles of incorporation. This will give your banker more information about your business. Make sure to contact your bank for an appointment. Opening a bank account for a corporation may take an hour or two.

To open a bank account for a corporation, all primary members of the corporation should be present and have their own identifying information. Their SSNs and ITINs will be recorded, as well as the corporation’s employer identification number. The banker will then usually give members a temporary check book, and debit cards will be sent through the mail. As long as you have all your documents in place, the process shouldn’t take longer than a couple hours.