“What is an EIN code?
” That is a common question that our organization receives from many clients. An EIN code refers to any standard EIN: employer identification number. The EIN is a nine digit number issued through the Internal Revenue Service (IRS). A key purpose of the code is to recognize all tax accounts of employers. Even some individuals with no employees must still use EIN numbers. What Is the Difference Between Tax ID and EIN?
So, why does the IRS use EIN numbers? Each number represents a certain taxpayer that must file business returns. EINs get used by more than employers. Corporations
, sole proprietors
, non-profit associations, and partnerships also use EINs. In fact, even trusts
, government agencies, and estates of decedents have EINs. The LegalRegistration.com team can help you register a new EIN today. Now, say that you already have an EIN. But ownership of your company changes. That means you will need to get a new EIN. Please give us a call right now to order your EIN over the phone.
What Are EINs?
“EIN” stands for Employer Identification Number. Some people refer to an EIN as an FEIN: Federal Employer Identification Number. Others call it a Federal Tax Identification Number. No matter what you call an EIN, it functions as a unique nine digit number. The IRS assigns EINs to all sorts of businesses and people in the United States. This way, the IRS can recognize each business by its unique code when filing taxes.
Say that you use your EIN for identification instead of employment tax reporting. That is when the IRS will refer to your number code as the TIN: Taxpayer Identification Number. Now, let’s say you only use your EIN to report employment taxes. The IRS should only refer to your code as an EIN. Remember to only use your EIN for tax administration purposes. Here is an example. Never use your code in sales, lotteries, a tax lien auction, or anything else.
Once again, there are many names that the IRS can use to refer to EINs. Each name means that the IRS is observing the identification of your business. In most cases, the IRS will refer to your code as an EIN. But sometimes your code refers to a TIN: Federal Tax Identification Number. The third most common EIN name is an FEIN: Federal Employer Identification Number.
What Is the Purpose of an EIN?
Sure, “EIN” stands for Employer Identification Number. But a number code is not only for businesses with employees. A code can get used for other business tasks. These include: hiring employees, opening a bank account, and filing tax returns. You might also need a code for EIN when applying for a business license.
IRS EIN Security Enhancement
The IRS strives for fair and equal treatment of all taxpayers. That is why the agency only provides one EIN per day, per party. It is an IRS policy that applies to all EIN submissions by mail, phone, fax, or online. This may cause inconvenience for some people and companies. But there is no way to get around this IRS tax code policy. Keep in mind that only someone with a taxpayer identification number can apply for an EIN.
Apply for an EIN Today Through Our Organization
Our third-party registration service can provide you with a new EIN today. Keep in mind that we cannot provide an EIN to a business outside of the US. Is the United States your principal place of business? If so, our experts can supply you with a new code right away. You have two options when it comes to receiving your new EIN. You can apply online here on our website or by giving us a phone call.
Say that you complete your online code application. Our legal experts can confirm your information during the online session. Through this process, most codes for EIN get provided on an immediate basis. Only an authorized third party designee can receive the EIN. The customer must have a valid taxpayer identification number: SSN, ITIN, or EIN. Please feel free to give us a phone call if you need information about online ordering.
EINs Compared to Social Security Numbers
An SSN is a social security number. It is a nine digit number that the US government assigns to citizens. The government uses an SSN to track taxes, earnings, and employment. Plus, the government also uses an SSN code providing social benefits after retirement. Each SSN gets classified as sensitive information. That is why some people take part in identity theft. As a result, a social security number should get shared in limited situations. Only share the code with government entities, employers, banks, and insurance agencies.
An EIN serves many of the same purposes that an SSN serves. But each EIN is only for a business entity instead of an individual person. Say that you own a sole proprietorship. In most cases, you can use your SSN as a business Tax ID code. This way, you won’t need to apply with the IRS for a new EIN. Now, say that the business wants to establish business credit or hire employees. That is when the IRS will enforce you to register a code for a new EIN. Unlike SSNs, EINS do not count as sensitive information. This means that businesses can distribute their EIN codes both in person and online.
Do EINs Expire?
No. An EIN never expires. Say that an EIN gets issued by the IRS to a business. That same code can never get reissued by the IRS. But the business can change or cancel its code under some conditions. Say that the business becomes a subsidiary of a second business. That is when the code might have to get changed or canceled. This is often the case when a sole proprietorship goes through bankruptcy proceedings.
Now, let’s say that your business changes its location or official name. The business will not need a new EIN. But the business must report changes like those to the IRS. Do you need to report a change of business address? If so, you can file IRS Form 8822 B. But what if you change the structure of your business? That is when you file IRS Form 8832.
Let’s say that the IRS assigns a new EIN to your business. The new code will replace the old EIN on an automatic basis. The old code then gets listed as inactive and the code cannot get reissued. This code process also applies to any business that gets resolved. The EIN becomes inactive. As a result, the IRS closes the business account. Keep in mind that the IRS will not allow anyone to remove or cancel an EIN. Why? Because the code functions as a permanent federal taxpayer identification number.
The Format of EINs
An IRS system for EINs has existed since 1974. The concept of an EIN was created under Treasury Decision (TD) 7306, 39 Fed. Reg. 9946. Authority for EINs stems from code 26 USC 6011(b). The code enforces taxpayer identification so people can pay employment taxes. Here is how the standard code of an EIN appears. The code gets written in this form: 00-0000000. Meanwhile, here is the standard code form for an SSN: 000-00-0000. Did you know that the Internet features websites of EIN decoders? They use codes to recognize which states a business registered every EIN.
We’re Standing By To Provide Your Business With an EIN
Do you or your business need an EIN? If so, our third party registration service is here to assist. Please order your EIN registration right here on our website. Or, you can pick up the phone and give us a call. Either way, our experts won’t rest until you have a new code to use as your EIN. In some cases, we can provide same-day service for new EINs. Do not stress about having to fill out all the complicated and confusing IRS paperwork. Instead, rest easy as LegalRegistration.com
fills out and files your application. We look forward to helping you receive a new EIN ASAP.
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