EIN stands for Employer Identification Number. It is a unique identification number that is issued by a company or organization. It is used for the identification of employees who must file a tax return.
How to get EIN? in order to get an EIN or Employer Identification Number, you need to have SSN or ITIN number. EIN is only difficult for a foreign individual to obtain some wonder how to get EIN without having SSN.
Importance of EIN?
EIN Number in Virginia USA. EIN is the most essential responsibility of any new businessman who is restructuring to obtain an EIN or Employer Identification Number from the IRS.
An EIN is unique and consists of a nine-digit number that uniquely identifies your business for tax purposes. It resembles SSN (Social Security Number). However, it is only related to business items.
If you want to own a business you will require an EIN to open a business bank account. Furthermore, this will help you apply for business licenses and file your tax returns. It is essential for each individual businessman to apply for it as soon as possible. This will ensure that there are no delays in getting appropriate licenses that you may need in the future.
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Why do you need it?
If you are planning to start a new business and you want to get Employer Identification Number as a foreign individual. For Employer Identification Number and SSN (Social Security Number) is required following information may help you get your Employer Identification Number.
For many who don’t know what is Employer Identification Number. It is an Employer Identification Number that is also known as Tax ID. It is a number that does not match with any other business or company. This number is assigned by the US or IRS (Internal Revenue Service)
Employer Identification Number, also known as Tax ID or Taxpayer Identification Number, is a number for your business assigned by the U.S. Internal Revenue Service (IRS).
Following are the business needs for Employer Identification Number:
- Starting a Business
- For Bank Account
- Filling Tax
What is SSN?
Many new business owners have no idea about SSN. SSN stands for Social Security Number it is a nine-digit number that is issued by the government.
These numbers are issue to individuals by the united states. As a result, it requires permanent residency or temporary aliens working in the country.
If you are not a citizen of the United States, in that case, you need to fill a form online or by hand to issue a social security number.
The form that has been discuss earlier has named SS-5 Form. Furthermore, this form checks citizenship and the immigration services office reviews your application.
When you can use EIN?
AN EIN or Employer Identification Number can be use to start and conduct business in the US. However, you can easily open a US bank account, hire employees, comply with the IRS (Internal Revenue Service), and file taxes.
EIN Application Process:
EIN consists of 3-steps. Following are the steps for EIN:
- You have to answer some questions.
- After you have completed your Question and Answer. Your third-party designee will complete your application and send it to you for review and sign it if necessary.
- After the review your third-party designee will process your application and within 5-7 working days you will receive your Employer Identification Number.
How long will it take?
Roughly it takes 5 to 7 working days to receive an Employer Identification Number. This is the least amount of time that requires you to take an IRS application. This is in the case if you don’t have an SSN (Social Security Number).