What's an Employer Identification Number and Why do I need one?

TAXPAYER IDENTIFICATION NUMBER

(EMPLOYER IDENTIFICATION NUMBER)

What is an Employer identification Number?

            An employer identification number (“EIN”) is also known as a taxpayer identification number (“TIN”) by some. They are the same.  The number is issued by the Internal Revenue Service (“IRS”) when you start a new business or hire your first employees. Think of the Number like your social security number. The Number is used to identify your corporation, limited liability company or other entity to the IRS.

Why you need an Employer Identification Number?

            There are multiple reasons. Opening a bank account unless the account is in your personal name requires an EIN. If you haven’t incorporated yet or formed a limited liability company or other business entity then you need an EIN to hire your first employee. Payroll taxes require you to have an EIN. To file any forms with the IRS such as Annual Tax Returns, Payroll Taxes or S Election to be treated as a S corporation also known as a Small Business Election.

What is the Form Number for an Employer Identification Number?

            Form SS-4 is the correct form to use if you are not filing electronically. You can submit the form by mail, by facsimile or electronically.

Where do you file the SS-4 form?

            Depending on where you are located there will be different addresses or facsimile numbers.

What Information do I need to file an SS-4 Form?

            You will need your business information, the primary owner’s social security number, your industry, the date you started your business and the expectation of employees over the next 12 months.