4 Things That Are of Great Importance When Applying for the IRS EIN Number

4 Things That Are of Great Importance When Applying for the IRS EIN Number

The IRS has done a great job of making the application for an EIN as simple as possible. Feedback for successful applicants is given the same day for online applications. The other types of applications get feedback within a month after submission. Whether the application is done online, through the mail, fax or by telephone, there are guidelines provided for filling out the forms. With all of these provisions, there are still situations where applications are done incorrectly. An incorrectly filled out form will be an automatic rejection once it gets to the IRS for approval. Here are 4 things that are of great importance when applying for the IRS EIN number, to ensure your application is approved.

1. Your Business Should Be Registered

Before applying for an EIN, you must have submitted other official documents such as articles of incorporation to the state. With a registered company, it will be easy to get your EIN. Details provided in the form SS-4 will match those in your company registration certificate. The business registration details include the name of a business, the owners and the type of business it is. Whether it is a sole proprietorship, partnership or a limited liability company will determine how the IRS gets taxes from you.

2. You Must Have a Social Security Number

Because the application for an employer identification number is made by an individual, the applicant must have either a social security number (SSN) or individual tax identification number (ITIN). Just as the IRS uses the EIN as an identity for your business, the government uses your social security number for your identification. The IRS can learn important details such as if your tax returns are filed. Your SSN will also tell of any fraud or criminal records about an applicant.

3. Correct Information for Your Business

It is very important to have all the right information about your business. Both online or a PDF application have this requirement. You should know your business name, address, physical location and purpose of the business. All these should be filled correctly and where they should be. You should also know the legal entity of your business, to enable you to fill out the correct kind of taxation policies. A mistake on the kind of tax on the business entity will lead to a disapproval of the EIN registration.

4. Tax Compliance

The IRS uses an EIN number for taxing and checking finances of the business. This said, the EIN applicant must be tax compliant in order for his or her business to get their EIN. Being tax compliant gives confidence that you are a law-abiding individual. If your tax returns are up to date and correct it means that you will also abide by the law in your business financial transactions. Tax compliance is checked against the applicantโ€™s valid taxpayer identification number. This is either the social security number for a US citizen or an individual tax identification number for non-US citizens.

Hundreds of Business Opportunitiesย โ€“ Visit theย Home Business EXPO

The post 4 Things That Are of Great Importance When Applying for the IRS EIN Number appeared first on Home Business Magazine.

0
Like
Save

Comments

Write a comment