Whether you are forming an LLC or a corporation, you will need to get a federal Tax ID number from the IRS. A federal Tax ID, also known as an Employer Identification Number (EIN), is like a social security number for a business. Every business needs one, and so do people who employ babysitters and housekeepers. Fortunately, it is easy to follow the steps to getting a Tax ID for your business.
Requirements for Applying for a Federal Tax ID
The eligibility requirements for applying for an EIN are quite simple. In fact, there are only two requirements. First, the business must be located in the United States or a United States territory. Second, the person submitting the application for the EIN must have a valid social security number. Only U.S. citizens, permanent residents, and nonimmigrant workers can apply for an EIN. International students and people with visitor visas cannot get an EIN. If they plan to adjust their status and wish to start a business, they need a business partner with a valid SSN. The business partner who can work legally in the U.S. must be the one to apply for the EIN.
It Is Easy to Apply for an EIN Online
To apply for an EIN online you can fill out an EIN application online to make the process even faster. You will receive a confirmation by email shortly after you submit your EIN application online. It will take about two weeks for the IRS to record your EIN. About four weeks after you submit your EIN application online, the IRS will send you a physical letter by mail. The letter will have your EIN printed on it. You can take this letter to the bank and open a bank account for your business.
Filling out an EIN application online is an easy first step to starting your business.