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2021 IRS APPLICATION
Applying for your Employer Identification Number (EIN)
Step 1: What is the form of your business/organization? (Sole Proprietor – Individual, LLC, Corporation, Trust, Estate, Etc)
Step 2: Fill out your information into our easy to use form to obtain a Federal Tax ID Number / EIN from the IRS and our team will review it prior to processing
Step 3: Your information will be submitted to the IRS EIN processing system, and you will receive your EIN via email within 1-2 business days (unless you are a foreign applicant)
What is the application process?
The application is very simple and is all online. You should be able to complete it in 5 minutes as long as you have the information handy about your business. The form and all the information entered is secure and protected by 256 bit SSL security.
What is the number format of an EIN?
The EIN is a 9 digit number. It is formatted with 2 digits followed by a dash and then 7 more digits. The numbers look something like this 12-3456789.
Are there any entities which cannot obtain an EIN?
No, all entities are allowed to apply for an obtain an EIN from the IRS.
What are some of the things I can do with my EIN besides pay taxes?
An EIN is used by banks for opening up business bank accounts. It is used to establish business credit and produce a business credit report along the lines of your personal FICO score, which can help businesses achieve access to loans and other credit from lenders. EINs are often required for obtaining business licenses in various states, and they are always required when filing your entity’s tax return at the end of each year.
I was married / divorced or otherwise changed my name, which name should I apply with?
When you update your name with the Social Security Administration, it takes 2-3 weeks for this to be reflected in the IRS. You may use your previous name or you can wait until the new name has been updated within the IRS to process your application.
What is an Entity Type?
The IRS recognized different classifications of entities for taxing purposes as there are different rules and tax forms for different types of organizations. Entity types include LLCs (Limited Liability Companies), Corporations, Partnerships, Trusts, Estates of Deceased Individuals, Non-profit organizations, To decide what entity type is right for your business, you may try different options in the drop-down and each type will have a brief description of the IRS classification for that entity.
Is an EIN needed to open a bank account for my business?
Yes, an EIN is required to open a bank account for your entity to use in place of your personal Social Security number that is tied to personal bank accounts.
What Does it Cost to File for an EIN Number?
The filing cost is $149 ($50 off for online filing) Standard US Filing (up to 2-7 days), or $199 ($50 off for online filing) Expedited US Filing (same or next business day). The cost is $499 for non-US applicants (2 Weeks Estimated Processing)
Do I require a Social Security Number to apply for a new EIN?
To apply for an EIN/Tax ID you must have a Social Security number or Indiviual Taxpayer Identification Number (ITIN). ITINs are issued to individuals who must have a US Taxpayer identification number but who do not qualify to obtain a Social Security number.
The only way to apply without a Social Security number or ITIN is if you arer listing an existing business with an existing EIN as the responsible party of the new EIN.
How do I contact Support or Make Changes to my Application?
Please E-mail : Service@txsalesanduse.tax
How quickly will I get my EIN?
It can take up to 2 weeks for the EIN to become part of the IRS’ permanent records, and available for all purposes, which can impact your ability to use the EIN during that period. You will receive your EIN within 1-2 business days.
How do I know if I need an EIN Number / Tax ID?
All business entities are required to have an EIN to identify the taxpayer. Entities with employees (including household employees for individuals) an EIN is required for tax purposes. Sole proprietors may use their social security number but can also get an EIN for their business purposes.
You need an EIN number if you are:
Started or are Starting a new business
Starting payroll for employees, including household employees
Filing business tax returns
Are opening a Bank account which requires an EIN
Setting up a business SEP IRA, 401k, Solo 401k, or Keogh Plan
Changed the legal character or ownership of your organization (for example, you change from a sole proprietorship to a partnership or an LLC)
Handling as Estate
Formed or created a Trust, Corporation, Partnership or LLC
Setting up a Non-Profit
Will I ever need to apply for a new EIN for the same business?
Businesses which change entity structure will need to file for a new EIN. For example, if you start off as a Sole Proprietorship, and get an EIN, then switch to a Partnership, you will need a new EIN. Later, if your partnership becomes a corporation, you will need a new EIN again. Even if you keep the same business name and DBA, when you change corporate structure, you will need a new EIN. If you don’t change structure, your organization will keep the same EIN for the life of the organization.
Is an EIN the same thing as a Tax ID, the same as a TIN, and FEIN?
Yes. An Employer Identification Number or EIN is the same as a Tax ID, and is also known as a Federal Tax Identification Number, or sometimes TIN, or FEIN. It is a 9-digit number that the IRS assigns to each business uniquely which helps to identify that business on IRS filings as well as for Banks. This number is different from any state tax numbers your state assigns.
How do I make changes to my EIN after it was assigned?
Certain changes can be made after your EIN / Tax ID is assigned. You will need to do this by calling the IRS / EIN line for changes at 1-800-829-4933. These changes include fixing the business name, business address, or the date that the busines started. You may be required to hand write a letter to the IRS describing the required changes, and you will be directed by the IRS staff on the steps you must take.
Can I cancel my EIN once it has been assigned?
You will need to write a letter to the IRS using the address where your entity is supposed to file its taxes, which varies state to state. It must be signed by the Principal Partner, Managing Member of the entity that was formed.
When will I get the official letter from the IRS with my EIN / Tax ID Number?
It can take as long as 4 weeks to receive the official letter from the IRS containing the paperwork for your EIN. Some banks may require this document to open a bank account, but most times you will be able to use the Tax ID number for most business purposes without the paperwork, and with just the number itself.
Do I need to wait to use my EIN / Federal Tax ID Number (FEIN) until after I receive the letter from the IRS?
No. As soon as you receive the Tax ID / EIN you can begin to use it immediately for most business needs. It can take as long as 2 weeks for the number to be updated in all IRS systems. Some banks require additional information and documentation to open a bank account. That process is up to each bank to set.
What is a Reference 101 error and what does it mean?
A Reference 101 error is a general IRS error and is very common. It does not reflect on your ability to get an EIN number or your application. An example of an error is that you have previously applied for an EIN online, and therefore we must take additional steps to process your application to obtain your EIN from the IRS, which can take 7-10 days for the IRS to process your EIN number.
TXsalesanduse.tax is a service offered by Homebuyers Alliance Organization, a Federally recognized 501c3 Non-profit organization. We offer this document preparation & filing service, but cannot provide legal, financial, or other professional advice. We do not review the information you submit on a professional, legal or accounting level as we are not, nor are we affiliated with any attorneys or accountants. You can obtain an EIN yourself at no charge with the IRS but we won’t be able to assist you. This website is not affiliated with the US Department of Treasury or the IRS.