Filing for an Employer Identification Number (EIN) is a crucial step for many businesses, especially when it comes to tax reporting and establishing a business identity. The EIN, obtained by completing SS-4 Form, is essential for various purposes, including opening a business bank account, hiring employees, and filing taxes.
What is SS-4 Form?
SS-4 Form is an application form used to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) in the United States. The EIN, often referred to as a federal tax identification number, is used to identify a business entity for tax purposes. It is primarily used by businesses, including corporations, partnerships, and sole proprietors, to obtain an EIN, which is essential for various activities such as opening a business bank account, hiring employees, and filing tax returns.
What is an Employer Identification Number?
An EIN, or Employer Identification Number, is a unique 9-digit tax number given by the IRS to identify your LLC in the US. It is required by many US banks and institutions for business operations. Once you have your EIN, you can open US business bank accounts and set up US payment gateways. The IRS uses the EIN to track how companies report their taxes.
Uses of EIN:
- Open business bank accounts
- Easily file tax returns for your business.
- Separate your personal and business affairs by keeping your SSN private (if you have one) and exclusively using the EIN for business activities
- Acquire certain business permits, if required for your business.
How Do I Complete Form SS-4?
Step 1: Gather Required Information
Before you start filling out SS-4 Form, make sure you have the following information on hand:
- Legal Name of the Business
- Trade Name
- Business Address
- Responsible Party
- SSN, ITIN, or EIN
Step 2: Download SS-4 Form
You can obtain SS-4 Form from the IRS website. Ensure that you are using the most recent version of the form to avoid any issues.
Step 3: Fill Out the Form
Here’s a breakdown of each section on SS-4 Form:
- Enter the legal name of your business.
- If applicable, enter your trade name.
- Check the box for your business type (sole proprietorship, partnership, corporation, etc.).
- Provide your business address (street, city, state, ZIP code).
- Fill in a different mailing address if applicable.
- Enter the name and SSN, ITIN, or EIN of the responsible party.
- Indicate the type of entity and expected number of employees in the next 12 months.
- Specify the reason for applying for an EIN (e.g., starting a new business).
- Indicate the first date you will pay wages if filing employment tax returns.
- Provide additional information, such as the date the business was started or acquired.
Step 4: Review Your Form
Before submitting, carefully review your completed form to ensure that all information is accurate and complete. Double-check for any spelling errors or missing details, as mistakes can lead to delays in processing.
Step 5: Submit Form SS-4
You can submit Form SS-4 to the IRS in several ways:
- Online
The quickest method is to apply online through the IRS website, which provides an EIN immediately upon completion.
- By Mail
You can mail the completed form to the appropriate IRS address, which varies base on your location. Processing can take 3-8 weeks.
- By Fax
If you’re in the United States and need a faster response, you can fax the completed form to the IRS.
Step 6: Keep a Copy for Your Records
After submitting your application, make sure to keep a copy of Form SS-4 and any correspondence from the IRS for your records. This documentation may be useful for future tax filings or business dealings.
Conclusion
Completing Form SS-4 is a straightforward process if you have the necessary information ready. By following this step-by-step guide, you can ensure that you accurately apply for your Employer Identification Number (EIN), paving the way for your business to operate smoothly in US. If you have any questions or need assistance, consider consulting with Bizfyle to help guide you through the process. Our team of experts is here to provide you with the support you need for a smooth application experience.
