A federal tax identification number, also known as an employer identification number (EIN), is used by the IRS to identify a business entity, such as a corporation, for tax and other regulatory purposes. It's similar to a Social Security number for a business. Each business has exactly one EIN, and any business that has employees or engages in certain types of activities is required to have one. This means most businesses must have an EIN. Fortunately, the application process is pretty simple.
Log into the IRS website and fill out the EIN application form. The IRS prefers that businesses apply for an EIN by filling out the form online at the link in the resources section of this article. It's faster for both you and the IRS. You can receive your new EIN in minutes.
Gather all basic information about your business. You will need to know the legal name, mailing address, type of business (e.g., corporation, sole proprietorship, partnership, etc.), whether it is a non-profit business, the number of employees, the entity's main line of business and any previous EINs assigned to the business.
Determine whether you really need an EIN. A business with no employees may not require an EIN under some circumstances. Consult the IRS website or a professional tax advisor for further details if you think you do not need an EIN.
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