EIN

What is an EIN?

EIN, Employer Identification Number is a unique nine-digit number issued by the IRS to business entities operating in US, for the purpose of identification.

• If you have an employee
• If you file excise or pension plan returns
• If you are a partnership/corporation
• To register for your State's employer taxes

That's pretty much every business out there.

The only exception is if you're a sole proprietorship without an employee. Then you don't legally need an EIN. You can use your SSN in most of the cases.

Why is EIN helpful?

Now you might wonder why such an identification is useful.

As it turns out, it is pretty important for a lot of things:

• EIN is how the IRS tracks your business for tax purposes.
• EIN is required to identify you as an employer so you can pay your employees.
• EIN helps to maintain the corporate veil if you are an LLC.
• Banks, credit unions, and brokerage houses often require EIN to open accounts.
• EIN is required in Amazon FBA, Google Ads, Shopify, PayPal, Stripe merchant accounts.

Even if you're a sole proprietorship, most banks and other financial institutions ask you for an EIN.

And it is pretty easy to get an EIN.

How to apply for an EIN?

If you have any sort of Taxpayer Identification Number( SSN or ITIN), you can apply for EIN online. It is absolutely free.

You just have to fill up the application form on IRS website.

After completing the form, you'll immediately get your EIN. You can download and print your EIN confirmation notice.

Alternatively, you can apply for EIN offline by sending your Form SS-4 by mail or fax(855) 641-6935.

Also, if you are an LLC or a corporation, you must register your business and get approved before getting an EIN. Because IRS will ask for your legal business name and its date of formation while applying for EIN.

For non-residents

If you do not have an EIN, you can apply for EIN only offline, by mail. Once approved, IRS can can ship your EIN Confirmation Letter internationally, but it will take much longer. You can instead give a local US address and get it forwarded to you internationally.

And how long will it take to receive EIN?

• 01If you apply online, you'll get it immediately.
• 02If you mailed in your Form SS-4, it will take about 4-5 weeks to reach you.

EIN Confirmation Letter

After IRS issues an EIN for your business, they will send you a EIN confirmation letter in Form CP 575 in about 8-10 weeks.

They do not email or fax it. They only send it by mail.

Certain banks or vendors may ask for this confirmation letter inorder to open accounts. So, it is a good idea to keep it safe.

Here's how an EIN confirmation Letter looks like:

And if you happen to lose this original letter, don't worry. You can request IRS for a replacement letter called 147c letter.

If you wanna get same day 147c letter online:

That's it. It is not the smoothest process, but it works.

How to cancel an EIN?

EIN in general, is never cancelled. It is never reassigned to another business, even if your business never used it.

But, if you're shutting down your business, you can close your business account with the IRS and that will cancel your EIN.

To close the account, send a letter to the IRS and include the following:

• The complete legal name of the business
• The business EIN
• The business address
• The reason you wish to close the account
• EIN confirmation notice you received when it was assigned to you.

IRS will close your business account only after you have filed all the required returns and paid all the taxes.