Right now is one of the best times to start a business. Some of the best companies have started during economic disruptions. As more business owners decide to venture out independently, one of the most significant items on their administrative checklist will be an EIN lookup or getting an Employer Identification Number.
Understanding why an EIN is so necessary, even if you may not be required to have one, is essential. Then, it’s vital to know if you already have one and how to get one if you don’t. Finally, you may have wrapped up an old business but still need to handle documentation around the active EIN. Below, we explore the EIN lookup in more depth.
EIN Lookup: What is an EIN or Employer Identification Number?
An EIN, or Employer Identification Number, is a 9-digit number issued by the Internal Revenue Service that serves as a business’s identifier. It is very much like a social security number for individuals. This number can be used to submit all tax filings at the federal and state levels.
Not all businesses need an EIN. For example, a sole proprietor can use his or her social security number instead of an EIN.
Why do I need an EIN?
Although not all businesses may need an EIN, certain types of companies do. Below are some examples of businesses that will be required to have their own EIN.
- A business that is hiring employees
- A business that is acquiring another business
- A business that is incorporated
- A business that is an LLC with more than one member
- A business that has set up a 401k or Keogh plan
Another point is that an EIN is meant to be public information; a social security number is not. Many businesses apply for an EIN not to have to furnish their social security number for business purposes continually.
How is an EIN different from a TIN?
An EIN is not the same as a TIN. An EIN is one form of TIN. A TIN, or a Taxpayer Identification Number, is a blanket term that is an application for different numbers used for identification purposes by the IRS. These numbers include;
SSN (Social Security Number) – An identifier used by the IRS for individuals
EIN (Employer Identification Number) – An identifier used by the IRS for businesses
ITIN (Individual Taxpayer Identification Number) – An identifier the IRS uses for non-U.S. citizens or legal residents.
Does my business already have an EIN?
Your business may already have an EIN. Your accountant or lawyer, who assisted in the registration of the business may have preemptively applied for an EIN. The EIN can be found in any one of the documents listed below.
- A business credit report
- The tax returns for a business
- Any payroll tax forms submitted at the State or Federal level
- Computer-generated receipts included in the company filing business registration documentation
If you’re still not able to locate an EIN, you can call the organizations below for additional help
- The IRS Business & Specialty Tax Line to help identify it
- Your lawyer may have filed the business registration documents.
- Your accountant who files the business taxes
- A credit agency from which a credit report may have been requested
- Your bank, if you’ve applied for a loan or have a business account with them.
- Your payroll service may file state and federal payroll tax filings on your behalf.
How To Get EIN?
Getting an EIN is a very straightforward and quick process. The application can be made by completing Form SS-4 and faxing it. Where businesses would need to fax it depends on the place of business or legal residence.
With a place of business or legal residence in the US: (855) 641-6935
With no place of business or legal residence in the US:
Fax: (855) 215-1627 (Application from within the U.S.)
Fax: (304) 707-9471 (Application from outside the U.S.)
The preferred option is to file an online EIN application through the IRS website.
Business owners can even apply for an EIN by calling the IRS Business & Specialty Tax Line at (800) 829-4933 between 7:00 a.m. and 10:00 p.m. Eastern Standard Time, from Monday to Friday.
Finally, there is also the option to mail in the application, depending on the place of business or legal residence.
With a place of business or legal residence in the US:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
With no place of business or legal residence in the US:
Internal Revenue Service
Attn: EIN International Operation
Cincinnati, OH 45999
What do I do with the EIN if my business no longer exists?
An EIN is noncancelable. Just because a business no longer exists does not mean the EIN will also cease to exist. The IRS will always record a company formed and an EIN granted to identify it.
However, if a business was closed out, the IRS should be notified so that they can record the closure of that business account in their database. The business owner would need to inform the IRS in writing of the conclusion of the business, sharing the business name, the address, the EIN issued, and the EIN Assignment Notice for good measure.
The current times are very suitable for entrepreneurs to set up new businesses. However, owners must fulfill some administrative requirements, such as getting an Employer Identification Number. Many companies that may not be legally required to get an EIN can still find it helpful to have one. There are easy ways to check if your business may already have an EIN or get one if you do not. There are specific regulatory tasks to complete regarding an already issued EIN if your business is wrapping up, and that is important to complete as well.
