If my principal business is in the US, do I need an EIN and what are the benefits?

The IRS assigns a federal tax identification number, also known as an employer ID number to entities whose principal business is located in the US and US Territories. This nine-digit number identifies tax accounts of employers as well as other entities that do not have employees. It allows organizations to commence tax-related business legally. You will need an EIN number if:

  • Your business is a partnership or corporation
  • You withhold income taxes other than wages, paid to a non-resident alien
  • Your company has employees
  • You file Alcohol, Excise, Employment or Tobacco and Firearms tax returns
  • You have a Keogh plan

Entities other than businesses also need an EIN. They include:

  • Trusts
  • Estates
  • Farmers cooperatives
  • Plan administrators
  • Real estate mortgage investment conduits

How to Get an EIN

An SS4 form is needed to apply for an EIN. GovDocFiling has a streamlined online process and step-by-step instructions that make it easy for you to get an EIN. You may receive a Tax ID number by email the same day your file. Our network of tax professionals can help you with the LLC forms needed to create your new company. They can also help your LLC file for tax return.

Can I Open a Bank Account Without an EIN?

Banks typically require organizations to present their federal tax ID number when they set up their account or to apply for a credit card in the name of the business. This allows the bank to confirm that the company is a legal entity. It establishes that you have the right to control its finances by writing checks and making payments in the name of the organization.

An EIN also makes it easy to separate business and personal assets. By keeping finances separate, the company is protected and your liability is limited, which can benefit your business, customers and shareholders. Begin the process of filing for your EIN by selecting your entity type and filling out the online application.