Is it possible to get an EIN before incorporating? Before registering for an employment identification number with the IRS, you must first establish your company.
Is it possible to get an EIN before incorporating? Before registering for an employment identification number with the IRS, you must first establish your company. According to Form SS-4, the EIN application, the name of the appropriate business entity must be provided precisely as it appears on incorporating papers. Incorporating before applying for an EIN enables you to enter your company’s precise legal name. If you operate a sole proprietorship or partnership and do not intend to incorporate, you may use your Social Security number for tax reasons and to apply for an EIN. If this changes in the future, you may notify the appropriate authorities.
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What Exactly Is an EIN?
One of the most significant papers for your new firm, along with your business licence, is the employer identification number. While you must have your articles of incorporation on hand when filing for an EIN, you do not need to have your company licence. This, however, is dependent on your jurisdiction. If you own a sole proprietorship, you may use your Social Security number to pay company taxes.
You’ll need an EIN if you want to incorporate or recruit staff in the future. If you operate a sole proprietorship or partnership and use your Social Security number for tax purposes, you must tell tax authorities, banks, and creditors if you decide to apply for an EIN in the future. This is particularly critical if your company wants to stay in compliance with federal, state, and local labour and pay laws.
How Do You Obtain an EIN?
Fill out the digital version of Form SS-4 to apply for an EIN quickly and easily online. For verification reasons, the IRS may require a faxed version of the form together with your company’s documents of formation in certain situations. You must already have a Social Security number or an individual taxpayer identification number (ITIN) and your firm must be situated in the United States to be eligible.
Go to the IRS website.
Select the File tab, then Popular, to discover a link to an EIN application.
Read the IRS information and suggestions on each screen carefully.
Click the Apply Online Now button.
The next page will have instructions for finishing the application.
Choose the business entity that best represents your organisation.
Confirm your decision by clicking the arrow.
Include information about the state in which your company is situated as well as the number of workers.
On the following screen, confirm that this information is accurate.
Explain why you’re enrolling for an EIN, such as opening a new company or a business bank account.
Choose the person in charge of your firm. This might be a person or a company that already has an EIN. This information will not be made available to the public.
If you are the responsible person, you must include your entire legal name as well as your SSN or ITIN. Indicate whether you are a firm owner or a third party operating on behalf of the owners.
Enter your company’s legal name, as well as the state and county in which you operate.
Answer the yes/no questions on the following pages honestly and properly.
Specify the industry in which your company works.
On the next page, you will be requested to submit further information about your company activity.
Select whether you want to receive your confirmation letter through email or regular mail.
Submit your application when you have confirmed your information.
How Do You Obtain a Business License?
The county and city where your business is situated set the regulations for your business licence. You may need a licence for zoning, sales tax, or other reasons. Business licences are granted at the state level in a few states, such as Washington, and are uniform throughout all municipalities.
An EIN or tax identification number (TIN) may be needed on your business licencing application in certain localities. If you haven’t yet obtained an EIN, your Social Security number will suffice. Depending on state and municipal requirements, you may also be required to disclose the TIN or SSN of all directors, officials, and owners of the firm.