If you are interested and thinking of starting a small business or be a self-employed individual instead of working for someone else, then you need to apply for an EIN or an Employer Identification number, once your business is legally formed. An EIN is also known as a Federal Tax Identification Number. Application for an EIN is free and is assigned by the Internal Revenue Service to identify a business entity. Every business needs an EIN to submit their tax return.
Not every business is the same and even though many claimed that the application for EIN online is easy and free, some businesses may face some difficulties on how to apply EIN online. According to IRS or the Internal Revenue Service, the application is something like an “Interview-style” online EIN application. There is no form to be filled. The applicant need only answers the questions posted to them online. And if the applicant is unsure, there are embedded help topics and hyperlinked keywords and definitions to guide them. Once completed, the applicant will receive the EIN immediately.
If an applicant is has a unique business and needs help with the identification of the business entity type, then it is recommended that the applicant seek the help of an EIN filing service provider. These service providers are third parties that provide various individual and business document preparation and filing services for a fee. They are not legal or financial advisors but they provide assistance in EIN applications online. These service provides such as Gov Doc Filing can immediately follow up on the issuance of EIN number.
Once an EIN is issued, it has no expiry date. A business will need a new EIN only when its ownership or structure changes. You will not require a new EIN when you change the name of your business or change location, and when you operate multiple business. If you have previously been assigned an EIN as a sole proprietor or as a household employer, there is no need to apply for a new EIN if you are a home care service recipient. You can use the EIN previously assigned to you.