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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)

 

  • Filing Names
  • Addresses & Activities
  • Confirm & Submit

Price: $149 for Standard processing / $199 Expedited / $499 for Non-US applicants

Before you Start

Help: If you do not have a Social Security number or an ITIN number assigned, you will answer yes to this question.  If you have a Social Security or ITIN number, answer No.

Note: Foreign applications will NOT be available within 1-2 business days, but will require up to 2 weeks to process.  

Basics

IRS DEFINITION: The plan administrator is a person specifically designated to carry out the plan's day to day operations. The plan administrator has a fiduciary responsibility to the participants under the plan. 

IRS DEFINITION: An estate (or decedent estate) or succession is a legal entity created as a result of a person's death. The estate consists of the real estate and/or personal property of the deceased person. The estate pays any debts owed by the decedent, and distributes the balance of the estate's assets to the beneficiaries of the estate.

IRS DEFINITION: A trust is a legal entity that is created under state law and is taxed under federal law. The trust can be created to perform one act or a series of acts.

IRS DEFINITION: A Partnership is an unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits. However, a joint undertaking merely to share expenses is not a partnership. For example, co-ownership of property maintained and rented or leased is not a partnership unless the co-owners provide services to the tenants.

IRS DEFINITION: A personal service corporation is a person or group of people who establish a legal entity by filing articles of incorporation with the state's secretary of state granting it certain legal powers, rights, privileges, and liabilities. A personal service corporation is an organization in which the activity involves the performance of services in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting.

IRS DEFINITION: Non-profit organizations include : public charities, private foundations, educational organizations, employee associations, veteran's organizations, business leagues, state-chartered credit unions, child care organizations, and teachers' retirement fund associations. This list is not all-inclusive.

IRS DEFINITION: A corporation is a legal entity established by a charter granting it certain legal powers, rights, privileges, and liabilities. A corporation can be established by a person or group of people with a charter from the state's secretary of state. After a corporation is created, it becomes its own entity and generally has an indefinite lifespan.

IRS DEFINITION: A limited liability company (LLC) is a structure allowed by state statute. An LLC is formed by filing articles of organization with the individual state's secretary of state. Owners of an LLC are called members. Members may include individuals, corporations, other LLCs, and foreign entities. An LLC can be formed by one or more members, and there is no maximum number of members.

IRS DEFINITION: A sole proprietor is one individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC). Sole proprietors may or may not have employees.

Entity Name Information

For Sole Proprietor: Enter your first name, middle initial, and last name.  Enter your individual name, not your business name. Enter your business name below as "Trade Name". Don't use abbreviations or nicknames.

For Trusts: Enter the name of the trust as it appears on the trust instrument.

For Estate of Decedent: Enter the name of the estate. For an estate that has no legal name, enter the name of the decedent followed by “Estate.”

For Partnerships: Enter the legal name of the partnership as it appears in the partnership agreement.

For Corporations: Enter the corporate name as it appears in the corporate charter or other legal document creating it.

For Plan Administrator: Enter the name of the plan administrator. A plan administrator who already has an EIN should use that number.

For Sole Proprietor: The Trade name represents the name that you are using for your business, as the legal name will be your individual name.  Please replace "N/A" with your business name.

Enter the trade name of the business if different from the legal name. The trade name is the “doing business as” (DBA) name.  If you do not have one, leave "N/A"

Tax Contact Info

For Estates: Enter the name of the executor, administrator, personal representative, or other fiduciary.  First name, Middle initial, Last Name

For Sole Proprietor: Re-Enter the name of the applicant unless you have a separate contact for Tax matters

For Trusts: Enter the name of the trustee.   First name, middle initial, Last name

Designated Tax Information Recipient: Please enter the name of the authorized person who will receive tax communications for the entity.  This can be the same as the responsible party, but must be re-entered here.

Responsible Party

Person who owns or controls the entity.  Must be an individual unless applicant is a government entity.

For Corporation, please use Name of Principal Officer

For Partnership, please use Name of Principal Officer

For Sole Proprietor, please use Owner Information. Very important to enter your name as it appears on your social security card for Sole Proprietors

For single member LLC , please use Name of  Principal Owner

For Estate, use name and information of Deceased Individual

For Trust, use Name of  GRANTOR, OWNER or TRUSTOR of the Trust

FEDERAL PRIVACY ACT - Disclosure of your Social Security number is required and authorized under law, for the purpose of tax administration and identification of any individual affected by applicable law, 42 U.S.C. §405(c)(2)(C)(i); 

Addresses / Locations

 

MAILING ADDRESS

 

PHYSICAL ADDRESS

 

BUSINESS LOCATION

If you don't know the US county, you can find it here by entering in the Zip code for the location of the business:  Find County

 

BUSINESS FORMATION LOCATION

LLC Details

Corporation Details

S-Corp: You will file form 1120s for Tax purposes.  You MUST file Form 2553 no later than the 15th day of the 3rd month of the tax year the election is to take effect. Until Form 2553 has been received and approved, you will be considered a Form 1120 filer.  You will need your assigned EIN first to be able to complete Form 2553.

C-Corp: You will file form 1120 for Tax purposes

Non-profit Details

Deceased Person Details

Plan Administrator Details

Grantor Details

EIN Application Reasons

Specify the type of business: Ex.  "The business sells new tshirts online","I opened a restaurant", "We build houses"

Specify Trust type: Ex. Split-interest Trust

Specify change: Example: "Sole Proprietor to Partnership", "Partnership to C-Corp"

Specify Type of Pension Plan

Specify purpose: Ex.  "a bowling league for depositing dues" or "an investment club for dividend and interest reporting"

Start / Acquisition Date

This is the end of the year period that you file your taxes on.  Sole Proprietors are ALWAYS on a December closing month and most companies are as well.  Only choose a month other than Decmber if you are sure and have discussed with your accountant.

Enter the starting date of the business. If the business you acquired is already operating, enter the date you acquired the business. For foreign applicants, this is the date you began or acquired a business in the United States.

Enter the date the new ownership entity began.

For Estate, use the date the Estate was funded or Date of Death.

For Trusts, use the date the trust was funded 

NOTE: By making this election, you will need to file Form 944 once each year instead of filing Form 941 every 3 months.

For foreign applicants, this is the date you began or will begin to pay income (including annuities) to a nonresident alien in the United States.

Activity of the Organization

Business Activities Continued

CONFIRMATION

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PAYMENT DETAILS

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EIN FAQs

  • 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.