How to apply for an EIN number

Right before you go to the bank to open a business checking account and get the appropriate license from your municipality be sure to apply for an Employer Identification Number (EIN). Don't let the name of this number fool you. You don't have to necessarily employ other people, however, anyone who owns a small business is required to have this number. The number is linked to your personal social security number. It is the IRS's way of telling that you are not only an individual taxpayer but a taxpayer who will be running a small business.

I will be honest and tell you that I sometimes start to see the concern in my students' eyes when I talk about the IRS. Lots of people seem to be afraid of those teddy bear IRS agents. You have to remember that you are doing exactly the right thing: staring a small business based on your particular skills or interests that can generate income and will provide tax deductions that will reduce or eliminate your tax bill. I was only audited once when I was running my real estate business, and I will tell you that the IRS agent that did the auditing couldn’t have been more fair and polite. There is nothing to worry about. In fact you should be proud of yourself. President Obama was quoted on his website during his campaign as encouraging to those wanting to start a small business: “Ninety-eight percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource…..Helping American small business is part of our movement for change and the end of politics as usual.” http://my.barackobama.com/page/content/sbhome/

You are not only legally arranging your lifestyle to take advantage of all the same tax laws that other business owners do, but you are providing one more financially secure, income generating, tax paying citizen (YOU!) to the roles. You have every intention to make money at your small business venture, however, that is not going to be your primary focus. The first year you do this you will be focusing on record keeping, developing your idea(s), and creating a business plan.

I discuss in depth how to start your small business in my "Why Should I Start My Own Business" page. Be sure to study those guidelines as well as consider personal coaching prior to staring your small business.

Employer Identification Number

Apply Online
The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

Apply By EIN Toll-Free Telephone Service
Taxpayers can obtain an EIN immediately by calling the Business & Specialty Tax Line at (800) 829-4933. The hours of operation are 7:00 a.m. - 10:00 p.m. local time, Monday through Friday. An assistor takes the information, assigns the EIN, and provides the number to an authorized individual over the telephone. Note: International applicants must call (215) 516-6999 (Not a toll-free number).

Apply By FAX
Taxpayers can FAX the completed Form SS-4 (PDF) application to their state FAX number (see Where to File - Business Forms and Filing Addresses), after ensuring that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type. If the taxpayer's fax number is provided, a fax will be sent back with the EIN within four (4) business days.

Apply By Mail
The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 (PDF) contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer.

Call the Google Voice number at 412-376-SAVE (7283) and your question or comment will be emailed Bowman's Money College.

"Bowman's Money College, Penn Hills - Turning poor into more"

Bowman's Money College, located in Penn Hills, is published to provide personal insights and opinions on saving and managing money, budgeting, and reducing debt. Also provided are ways to start a small business, decrease your tax liability, and build wealth. Bowman's Money College does not give professional accounting, legal, or investing counsel. The ideas, examples, and advice presented on this site are solely the opinion of the author based on his personal experiences. 412-376-SAVE © All rights reserved. Contact at LinkedIn.