Almost every new business owner must apply for an Employer Identification Number or IRS EIN number. While the process seems scary, obtaining your EIN is easier than you think no matter what coast you call home. Here is what you need to know:
Who Needs an EIN?: Pretty much every business owner who intends to hire employees’ needs to apply for an EIN. Even if you are the only one in your company, you may still wish to apply for an EIN to distinguish your business taxes from personal ones, or in case you plan on hiring later.
How to Apply for an EIN: To apply for an EIN, you must complete Form SS-4.The fastest, and easiest way to submit the form is to do so online through a trusted site. You may also mail or fax your SS-4, but you should be prepared to wait two to four weeks for a response. The good news about applying for an EIN is that you’ll only have to do it once; an assigned EIN typically remains with the business throughout its lifetime. Once you have the EIN for your business, you should keep the number recorded and avoid sharing it with others.
How Long Will It Take?: After you receive your EIN number, you can use that number to start a line of credit at a bank immediately. However, you will need to wait several weeks before filling taxes with your EIN. The total processing time will depend on your method of submission and not on the location of your business.
No matter where in the US your business resides, obtaining an EIN will take about the same about of time. If you are in a time crunch, make sure you submit the application online for the fastest results.