Majority of the businesses need to have an EIN, and they need to show their EIN on any annual tax returns, statements, and other...
Majority of
the businesses need to have an EIN, and
they need to show their EIN on any annual tax returns, statements, and other
related documents containing tax payments of their employees, members or
shareholders. IRS form SS-4 is used while
obtaining Employer Identification Number from the IRS, which can be obtained
from the SSA office or from online. Your business tax account will get
established with the specific information that you provide while filing an EIN
application. It is important that you use your EIN in connection with your
business activities only and not as an alternative for your individual Social
Security Number (SSN)
Contents of
SS-4 Form
SS-4 form
for obtaining business EIN has many questions relating to the type of business
entity, particular reasons for the business to apply for EIN and the specific
third party designee name that the business is authorizing to receive the
entity’s EIN. It is highly recommended
that you take the assistance of reputed third party designee like federal
EIN application, which provides easy-to-use and faster online EIN
application form submission service and expedited service. The SS-4 form
provides the business to choose the exact type of identity of the business from
various options such as sole proprietor, partnership, corporation, personal
service corporation, church or church-controlled organization, Estate, trust,
Non-profit organizations, and others.
You need to
file for an EIN application if your business comes under any one of the
following categories.
New
Business
The new
businesses started by you need to have an EIN to provide a necessary report
about employment taxes or give tax statements to the tax lawyers if you are
having employees or plans to hire employees in future for your business. You need to fill in the SS-4 form with relevant
employee details such as the highest number of employees expected to be hired in your business in the corresponding
year and their expected tax liability in a full calendar year.
Changed
Type of Organization
It is
necessary for you to obtain an EIN for your commercial entity if either the
legal character of your business is changed
or there is a change in the ownership of your business. For instance, you may
want to change the present structure of your existing partnership business to a
sole proprietorship or a single owner business to partnership business. In such cases, you necessarily need to apply
for an EIN by specifying the new type of organization in the SS-4 application
form to file taxes and submit yearly tax statements of the changed type of
business.
EIN
application is necessary if you have purchased an existing business entity,
which does not have an existing EIN. In the SS-4 EIN application form, you need
to provide the exact date that you acquired the particular business along with
specific details such as the principal activity of the acquired business. You
can choose from various options given under the principal business activity
category such as construction, Real estate, manufacturing, Healthcare &
social assistance, Rental & Leasing, Finance & insurance, and others.