How to Get a Free EIN Number: A Comprehensive Guide
As a business owner, one of the essential steps you need to take is obtaining an Employer Identification Number (EIN). An EIN is a nine-digit number assigned by the Internal Revenue Service (IRS) to identify businesses for tax purposes. It is also known as a Federal Tax Identification Number. Obtaining an EIN is necessary for various reasons, including opening a business bank account, filing tax returns, hiring employees, and applying for business credit. Some people believe that they have to pay to obtain an EIN, but the truth is that it is possible to obtain one for free from the IRS.
Outline the Process
Obtaining an EIN number is free, easy, and can be done online or via mail. Here is how to get a free EIN number from the IRS:
Step One: Determine eligibility
In general, any business entity with a tax obligation in the United States can apply for an EIN number. Examples include, but are not limited to:
- Sole proprietorships
- LLCs (Limited Liability Companies)
- Partnerships
- Corporations
- Non-profit organizations
Step Two: Complete the Application
Complete the online application or submit Form SS-4 via mail to the IRS. Answer all questions accurately. The online application is the most straightforward way to apply for an EIN and can be found on the IRS’s website. The online application is available from Monday to Friday, from 7:00 am to 10:00 pm Eastern Time.
Step Three: Submit your Application
Submit your completed application online or via mail to the IRS. If you submit via mail, you can expect a response within four weeks.
Tips for Filling Out the Application
- Make sure you spell your name(s) and address correctly.
- Have all your documentation ready before starting the application.
- If you are submitting the application via mail, ensure it is clear and legible, and all required information is included.
List Requirements
Before you apply for a free EIN number, ensure you have these essential requirements:
- A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Proof of identity, such as a valid driver’s license, passport, or state ID.
- Information about your business entity type (for example, LLC, sole proprietorship et cetera), name, and address.
Discuss Benefits
Obtaining a free EIN number for your business comes with various benefits. Here are a few:
- Applying for business credit becomes easier with an EIN number. By using an EIN number, you can create a business credit profile separate from your personal credit history.
- You can open a business bank account by using your EIN number.
- Hiring employees becomes easier with the use of an EIN number.
- It safeguards your SSN from identity theft. When you use your SSN instead of an EIN number, you are putting your personal information at risk.
Obtaining an EIN number for your business is a simple and effective step to take to ensure its success.
Compare Paid Options
Various companies offer paid options to help business owners obtain an EIN number. These options include filing services or third-party websites that offer to obtain an EIN on your behalf. While these services may be convenient, they come with fees. In some cases, these fees are quite high. Therefore, obtaining a free EIN number from the IRS is the best option to avoid unnecessary additional expenses.
Share Personal Experience
Obtaining a free EIN number from the IRS was an easy and straightforward process for me. I was able to complete the online application in under 15 minutes, and my EIN number was available almost immediately. I filled out the necessary information accurately, double-checked everything, and hit the submit button.
Overall, obtaining a free EIN number from the IRS is an effective way to get started with your business without additional expense.
Targeted Advice for Different Audiences
Freelancers
If you are a freelancer, obtaining a free EIN number is still necessary, especially if you plan to make over $400 in a year. For example, if you work as an independent contractor and receive 1099-MISC forms, you will need an EIN number to report your income to the IRS.
Independent Contractors
If you are an independent contractor or work for a start-up, obtaining an EIN number is necessary to separate your personal finances from your business finances. An EIN number helps you establish business credit and opens opportunities for your business to grow.
Start-Ups
If you’re a start-up business, having an EIN number is crucial. You will need it to create a business bank account, apply for business credit, and for tax purposes. Furthermore, having a separate EIN number can help you protect your personal assets from business debts or legal actions your company may face. Start building your business’s credit and reputation by applying for a free EIN number from the IRS.
Conclusion
Obtaining a free EIN number from the IRS is a smart investment in the future of your business. A free EIN number can offer substantial benefits and simplify the process of reporting your income and hiring employees. Avoid costly fees by bypassing third-party websites and applying directly with the IRS. Use this guide to simplify the process and get your EIN number today.
