According to the Internal Revenue Service (IRS), every business owner has to have an Employer Identification Number (EIN) which is also known as the Federal Tax Identification Number. Even if you are a home-care service recipient acting as a sole proprietor or as a household employer, you need to apply for an EIN. An EIN is a unique 9-digit number assigned by the IRS to business entities operating in the United States for the purposes of identification. The IRS uses this identification number to identify your company.

Once an EIN has been assigned to an employer, he or she need not have to re-apply for a new EIN. The EIN has no expiry date. If you are not able to locate your EIN due to whatever reason, you can go to the IRS website and follow the instructions on the “Lost or Misplaced Your EIN” webpage. Application for an Employer Identification Number (EIN) is free and this service is offered by the Internal Revenue Service, so beware of any internet websites that are charging for this free service. You can either apply for EIN online, or through the traditional method by filling up the form and sending it through the mail or submit to the IRS office in person.

Online application for the EIN is the preferred method for customers to apply for an EIN. Once the application is completed and the information is validated, the EIN is issued immediately. The LLC filing online application process is available for all entities whose principal business, office or legal residence in the case of an individual is located in the United States. In order to have access to the online application, the principal officer, general partner, owner, etc. must have a valid Taxpayer Identification Number such as the Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number. Application can also be done through fax, mail, or through the telephone service.

Here are some criteria to show whether your company need a Federal tax ID number.

  • If you have employees working in your company
  • If you have registered your company as a corporation
  • If you are withholding taxes on income other than wages
  • If you have dealing with organizations listed with the IRS, and etc.

Certain details are required before applying for the tax ID. Such details include the name and taxpayers ID number of the company’s principal officer, owner, general partner, or grantor, and etc. will be required.