| If you've taken the leap into the entrepreneurial world | | | | Next, there is the actual application process. The IRS |
| of "business ownership", then you may find yourself | | | | designates form SS-4 as the Application for Employer |
| immersed in a world that speaks a language that is | | | | Identification Number. All the necessary instructions, |
| business savvy, and difficult for the untrained ear to | | | | forms, and most frequently asked questions can be |
| understand. One of the most important terms, | | | | accessed via the internet at or hard copies may be |
| however, will be the choices concerning your form of | | | | obtained at your local IRS office. The internet IRS site |
| business, business ownership, and entity status. The | | | | also gives detailed information concerning the location |
| decisions made about these topics will determine your | | | | of your local IRS office. |
| need for an EIN. An EIN, or Employer Identification | | | | The length of time required to obtain your EIN will vary |
| number is a number the IRS uses to identify taxpayers | | | | depending upon the method of application you chose. |
| that are required to file various business tax returns. | | | | Online applications provide immediate EIN's, while faxed |
| EIN's are used by employers, corporations, | | | | or mailed applications can take up to 6 weeks for |
| partnerships, trusts, and estates just to name a few. | | | | processing and EIN receipt. |
| Perhaps the greatest determining factor concerning | | | | EIN's will be necessary for filing employment and |
| the need for an EIN is your choice of business | | | | excise tax, withholding tax, federal, state and local |
| organization. Are you a Sole Proprietor, a Partnership, | | | | taxes withheld from employees pay, by lending |
| or a Corporation? | | | | institutions for proper tax identification, and of course |
| If you are an individual operating a business, as a sole | | | | when the yearly business tax return is filed. |
| proprietor without employees or partners, or without | | | | In summary, if your business requires a separate |
| the need to incorporate, then you are not required to | | | | identity, the IRS requires an EIN. It is the means by |
| apply for an EIN. | | | | which the IRS identifies, tracks, records, and stores any |
| Most of the other forms of business organization will | | | | information associated with a particular business. The |
| require the use of an EIN. These forms include | | | | EIN crosses all federal, state and local tax lines, and will |
| corporations, estates, trusts, multiple businesses | | | | be used for the life of your business. Protect is |
| operated by a single individual, or if you are a sole | | | | carefully, and use it wisely. |
| proprietor subject to a bankruptcy proceeding. | | | | |