Tax Topic #755 |
2008 Tax Year |
Topic 755 - Employer Identification Number (EIN) � How to Apply
Generally, an employer is a person or organization for whom a worker performs
services as an employee. As an employer, you are generally required to withhold,
deposit and report employment taxes. To file the various tax returns, including
employment tax returns, you need a Taxpayer Identification Number (TIN). Specifically,
you need an Employer Identification Number (EIN). However, a sole proprietor
may use his or her social security number as the TIN if the business has no
employees and is not required to file excise, employment, alcohol, tobacco,
or firearms returns. A sole proprietorship is the only type of business that
may use a social security number as its TIN.
An entity is considered to be a sole proprietorship for Federal tax purposes
if an individual operates his or her business through a domestic Limited Liability
Company (LLC) owned solely by the individual and does not elect for that LLC
to be taxed as a corporation using Form 8832 (PDF), Entity
Classification Election. In such a case, the LLC is disregarded for Federal
tax purposes. Generally, the disregarded LLC without employees should not request its own EIN. However, the owner of a disregarded
LLC must pay all employment taxes and file employment tax returns with respect
to wages paid to employees performing services for the disregarded LLC using
the disregarded LLC's own name and EIN.
There are four ways to apply for an EIN:
- 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 principle 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, trustee 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.
- You may obtain an EIN immediately by telephone 5 days a week, Monday through
Friday from 7:00 a.m. to 10:00 p.m. (local time), by calling IRS at (800)
829–4933. You may use this EIN immediately to file a paper return or
make a payment of tax.
- You may obtain an EIN by completing Form SS-4 (PDF), Application
For Employer Identification Number, and faxing it to the IRS for processing.
The IRS Fax numbers are provided in the Form SS-4 Instructions.
An EIN applied for by fax will be issued within 4 business days.
- You may also obtain an EIN by completing the Form SS-4 and mailing it
to the IRS service center address listed on the Form SS-4 Instructions. By
mailing the completed Form SS-4 to the appropriate service center, you can
obtain an EIN within 4 to 5 weeks.
If you already have an EIN and the organization or ownership of your business
changes, you may need to apply for a new number. For more information, refer
to Publication 1635 (PDF), Understanding Your EIN. If you
prefer, you may call 800–829–4933 for more information.
Page Last Reviewed or Updated: December 22, 2008
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