What Does the Government Do With My EIN?

According to the Internal Revenue Service (IRS), an “EIN is a unique number that identifies the organization.” The IRS uses these numbers to track business entities and hold these organizations responsible for their tax obligations.

EIN is an acronym for Employer Identification Number; they are nine-digit numbers that function like Social Security Numbers (SSN). Just like an SSN, this unique tax ID will stay with the organization forever, and can be used to do a number of things in addition to filing taxes, which include opening bank accounts and acquiring credit in the name of the company or organization.

Government involvement with tax IDs is always required. The IRS furnishes EINs and uses them for tax purposes, and state government may require their use to form specific types of business entities, such as corporations or limited liability companies (LLC). You might also need an EIN to apply for local permits or licenses, and private companies, such as banks and lending agencies, also use this tax ID number to provide business owners with relevant financial services.

Apply for an EIN Online

The fastest and easiest way to apply for an EIN is online. Online applications usually take 24-hours* to process, and you can check the status of your order at any time.

If you’re a business owner or entrepreneur, don’t wait to obtain this important tax ID number for your business. Our forms are simple to use and only take a few minutes to complete. Plus, if you have any questions, feel free to contact us for help regarding your application, or if you need assistance with regard to the formation of your business entity.

Non-Government Entities That Require Your EIN

Whenever your business interacts with state and federal tax reporting agencies or any business entity who must report your financial transactions to those entities. Examples of those institutions include:

  • Banks providing your business with credit
  • Financial management companies handling your 401(k) plans
  • Bankruptcy assistance resources, including bankruptcy lawyers

The EIN is a tax reporting number, so you can also expect that any agency you have to make tax payments to is going to require you to use it. That means local, state, and federal governments, as well as their duly recognized agencies that manage employee tax payments, since you will need to help report and manage those.

EIN Security

The EIN is not necessarily a private record. In fact, publicly traded organizations publish theirs. The contact information for the person who registered the record is listed with the IRS, and it is a public record, although not necessarily a readily accessible one. Other than that, no information about your business is shared when you share your EIN. It simply allows for accurate tax reporting and payment.

When you apply for an EIN with GovDocFiling, the process is handled on the same business day*, and your communication with the company is totally private. The only information sharing is with the IRS, to help facilitate the speedy processing of your EIN filing.

Dealing With EIN Denials

It is very rare for the IRS to reject an EIN application, but in the event they do, GovDocFiling will send you explicit instructions as well as a refund (less a processing fee), so you can easily make the changes and resubmit. That makes it easy to get your business or nonprofit entity the tax reporting identifiers you need to operate your company. Remember, you need the EIN before you can officially hire employees or start 401(k) plans for participants in your business. If you have questions about the application process, contact us. We respond to email queries promptly, usually on the same business day.

*Most EINs are processed same or next business day, unless bundled with state formations, processing times will vary.