Benefits of Applying for an EIN Online?
Almost every business is required to apply for an EIN (Employer Identification Number) also known as a Tax ID Number. This nine-digit number is assigned by the Internal Revenue Service to identify a business for tax purposes.
A Tax ID Number is required on all documents that are tax-related, such as returns and accounts. It may be required for certain credit cards, bank accounts, and other financial institutions as well.
Entities Required to Apply for a Tax ID Number Include:
- Corporation
- Limited Liability Corporation
- S-Corporation
- Sole Proprietor/Individual
- Partnership
- Personal Service Corporation
- Nonprofit Organization
- Church Control Organization
- Estate of Deceased Individual
- Trust
You can apply for a Tax ID number in several ways: mail, fax, or online. The most popular choice is by way of online. The majority of individuals choose this way to apply for an EIN for many reasons.
The greatest benefit of using online to apply for an EIN is the speed. Many times, this number is immediately needed by the individual who is applying.
When using mail, it takes approximately five weeks, and by fax you need to wait several days before receiving it. By applying online (irs-ein-tax-id.com), you receive your EIN the same day, many times within the hour.
However, you have a two-week waiting period before you are able to make electronic payments or electronically file a return. During this period, your EIN is available to use for other purposes, such as filing a paper return or opening bank accounts.
Another benefit when you apply for a Tax ID Number online is the simplified forms used by online services. By using a simplified form, the chance for error is reduced dramatically, helping to ensure your application will not be rejected.
Also, by using easy-to-fill forms, you are able to finish and submit your application quickly allowing you to return to other business matters.
Category: Taxes
