Starting a business in Virginia is an exciting endeavor, but it requires several important steps, one of which is obtaining an Employer Identification Number (EIN). An EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your business entity for tax purposes. Whether you’re a sole proprietor, partnership, corporation, or LLC, this article will provide you with a detailed guide on how to obtain an EIN for your Virginia business.
Table of Contents
Step 1: Determine Your Eligibility:
Before applying for an EIN, ensure that you meet the eligibility requirements. Generally, you need an EIN if you have employees, operate your business as a corporation or partnership, withhold taxes on income (other than wages) paid to a non-resident alien, or have a Keogh plan.
Step 2: Gather Required Information:
To complete the EIN application, you’ll need the following information:
Business Type: Determine your business structure (sole proprietorship, partnership, corporation, or LLC).
Social Security Number (SSN): If you’re a sole proprietor, you’ll need your SSN. For other business types, you’ll need the SSN or Individual Taxpayer Identification Number (ITIN) of the responsible party.
Legal Business Name: Provide the legal name of your business entity.
Trade Name (DBA): If you operate your business under a trade name (Doing Business As), provide that name.
Physical Address: Submit the physical address of your business location.
Mailing Address: If different from the physical address, provide the mailing address for correspondence.
Contact Information: Include your phone number and email address.
Business Start Date: Specify the date when your business started or will start.
Reason for Applying: Explain the reason for obtaining an EIN, such as starting a new business, hiring employees, or establishing a retirement plan.
Step 3: Choose an Application Method:
The IRS offers three methods to apply for an EIN:
Online Application: Visit the IRS website (www.irs.gov) and navigate to the “Apply for an Employer Identification Number (EIN) Online” page. Complete the online application form and submit it electronically. Once approved, you will receive your EIN immediately.
Fax Application: Download Form SS-4 from the IRS website and complete it manually. Fax the completed form to the appropriate fax number provided on the form. Within a few business days, you will receive your EIN via fax.
Mail Application: Similar to the fax method, download Form SS-4 and fill it out. Mail the completed form to the appropriate address mentioned in the instructions. The IRS will process your application, and you will receive your EIN by mail within a few weeks.
Step 4: Additional Considerations:
a. Language Requirement: If you complete the EIN application online or by phone, you must have a basic understanding of the English language.
b. Third-Party Authorization: If you want someone else to handle the EIN application on your behalf, complete Form 2848, Power of Attorney, and Declaration of Representative. This form authorizes an individual or business entity to act as your representative.
c. Business Changes: If your business undergoes changes, such as a change in ownership or legal structure, you may need to obtain a new EIN. Consult the IRS guidelines or seek professional advice to determine if you need to update your EIN.
WE CAN HELP
Obtaining an Employer Identification Number (EIN) is a crucial step for any Virginia business. The EIN serves as an identifier for tax-related purposes, allowing your business to comply with IRS regulations. By following the step-by-step guide outlined above, you can easily apply for an EIN, regardless of your business structure. Remember to gather the necessary information, choose your application method, and consider any additional requirements. By obtaining an EIN, you are setting your Virginia business on the path to success and compliance with the IRS.