Every partnership is going to require a Tax ID (EIN) Number. Compliance with the IRS early on in the life of the partnership is crucial. Take your time early on to apply and be ready for a positive future ahead.
Steps to Applying for a Tax ID (EIN) Number for a Partnership
- Prepare Mandatory Business Information
- Apply for a Partnership Tax ID (EIN) Number Online
- Apply for a Partnership Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Partnership?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Partnership?
- Why Do I Need a Tax ID (EIN) Number for my Partnership?
To obtain a Tax ID (EIN) Number for a partnership, you need to get all of the mandatory business information together. The Internal Revenue Service requires certain data points in order to generate you the nine-digit unique Tax ID (EIN) Number for your partnership. The information is not all that extensive, nor complicated, but you do want to make sure you gather everything. Once you have it all in-hand you will be able to get through the application process is one step, rather than having too tart and stop to get more information necessary.
The responsible party is the biggest piece you need to figure out and obtain as part of the application process to get a Tax ID (EIN) Number for your partnership. With a partnership, the initial thought is you can name both individuals as the responsible parties on the application, but this is not the case. As a matter of fact, you need just one individual, not an entity, to be a responsible party. The responsible party needs to have a Social Security Number or ITIN. They also will be the individual responsible to do all communication with the Internal Revenue Service.
With all of the data points in hand, you can complete the application process pretty easily. You simply need a bit more data, such s the principal address of the partnership, industry details, as well as other basic information. You will be able to document everything so that when you have the form in-hand, ready for completion, you can just pop all of the details on the form and submit it for processing.
A partnership has options when it comes to obtaining a Tax ID (EIN) Number from the Internal Revenue Service. The most popular option, though, is going to be where you can apply for the Tax ID (EIN) Number right online. The requirement to use the online application method is simple in that you just need the mandatory business information on the partnership, you need an Internet connection, as well as a device to connect to the website of the Internal Revenue Service. In most cases, you can use a laptop or desktop. You may even be able to use a mobile device such as a tablet or a smartphone.
The online application takes the entire form requirement from the Internal Revenue Service and puts it in a virtual setting. You can input all of the information one entry point at a time. One you put everything on the site, you will verify the accuracy before submitting it to the Internal Revenue Service.
The great thing about the online method of applying for a Tax ID (EIN) Number is that it is all instant. When you enter everything you can just submit it right to the IRS near instantly. When they receive the online application form, the validation process of the data is also almost instantaneous. If they need more details they will ask, or they will just return to you the Tax ID (EIN) Number right away. The online application form makes it as easy as possible to get a Tax ID (EIN) Number for a partnership.
The online application method is not the only manner in which you can apply for and obtain a Tax ID (EIN) Number for the partnership. The other two common methods you can use for the application process include applying via mail or fax.
The mail application process is the most traditional. You are printing out the Tax ID (EIN) Number application form first and foremost. The form you will need to obtain is the SS-4 EIN (Tax ID) application. When you print out the form, it is a matter of taking the mandatory business information from the first section of this article and putting it all in the right locations. You need to input details for the responsible party, the business, and so on. The submission process for the mail application requires you to fill out an envelope with appropriate postage and put the form in for mailing submission.
The fax application method is another way in which you can apply for the Tax ID (EIN) Number for the partnership. The process for the Tax ID (EIN) Number through fax is similar to mail in that you are completing the paper form in entirety. You then need to locate the fax number for the Internal Revenue Service and submit it to them. In the end, they will fax you back the Tax ID (EIN) Number.
You have a lot of options to obtain a Tax ID (EIN) Number for your partnership. The first method you can use to obtain the number is to use the online application method. The other two popular options include the fax application and mail application methods. If none of those work for you, you can also apply over the phone by placing a call to the Internal Revenue Service.
The length of time it takes to obtain a Tax ID (EIN) Number for the partnership will largely depend on how you apply. The online application process is going to be the quickest, followed by the fax and then mail application methods.
When you apply online, you can have the unique nine-digit Tax ID (EIN) Number for your partnership in-hand in less than ten minutes. When you apply with a fax machine you can expect it to take several business days. The mail application method may take several weeks before you finally have the number back and complete.
The partnership needs a Tax ID (EIN) Number for a variety of reasons, all with the center point of Internal Revenue Service compliance and tax administration. The IRS needs to track the activity of the partnership for tax return filing purposes. You also need it for bank accounts, loans, etc. It is an identifier to track everything in relation to the partnership.
Obtaining an EIN for your partnership is easier than you think with new online application methods. Prepare the mandatory business information and submit it for IRS processing to be compliant as early as possible.