If you are starting a new business in New Jersey, obtaining an Employer Identification Number (EIN) is an essential step. An EIN is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify your business for tax purposes. It is commonly required for various business activities, such as hiring employees, opening a business bank account, and filing tax returns. In this article, we will guide you through the process of obtaining an EIN for your New Jersey business.
Table of Contents
Step 1: Determine Your Eligibility:
Before applying for an EIN, ensure that you meet the eligibility criteria. Generally, any business entity, including sole proprietorships, partnerships, corporations, limited liability companies (LLCs), and nonprofit organizations, can apply for an EIN.
Step 2: Gather Required Information:
To complete the application process smoothly, gather the necessary information beforehand. The following details will be required when applying for an EIN:
Legal name and mailing address of your business.
Business structure (sole proprietorship, partnership, corporation, LLC, etc.).
Responsible party’s name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Date your business started or acquired.
Reason for applying (new business, hiring employees, opening a bank account, etc.).
Step 3: Choose Your Application Method:
There are three methods to apply for an EIN: online, by mail, or by fax. While all methods are generally available, online application is the most convenient and fastest option. The online application is available on the IRS website and allows you to receive your EIN immediately upon completion.
Step 4: Apply Online for Your EIN:
To apply online, follow these steps:
Visit the IRS website: Access the IRS website and navigate to the EIN Assistant page.
Select the appropriate entity type: Choose the option that best describes your business structure.
Complete the application: Fill in the required information accurately, including your business details and the responsible party’s information.
Review and submit the application: Double-check all the details for accuracy, then submit the application.
Receive your EIN: Upon successful submission, the IRS will assign your EIN instantly. Make sure to save and print the confirmation letter for your records.
Step 5: Apply by Mail or Fax:
If you prefer to apply by mail or fax, follow these steps:
Download and complete Form SS-4: Visit the IRS website and download Form SS-4, Application for Employer Identification Number.
Fill out the form: Provide the required information on the form, ensuring its accuracy.
Submit the form: Mail or fax the completed form to the appropriate IRS office. The mailing address and fax number are specified in the form’s instructions.
Await processing: The processing time for mail or fax applications can take up to four weeks. Once approved, the IRS will mail your EIN confirmation letter to the address provided on the application.
WE CAN HELP
Obtaining an Employer Identification Number (EIN) is a crucial step when starting a new business in New Jersey. By following the steps outlined in this article, you can easily apply for an EIN and ensure compliance with IRS regulations. Remember to keep your EIN confirmation letter in a secure place, as it will be necessary for various business activities. If you have any questions or need further assistance, it is advisable to consult a tax professional or reach out to the IRS directly.