Obtaining an EIN Tax ID Number from the IRS
Obtaining an EIN Tax ID Number from the IRS - The Employer Identification Number, also known as the Federal Employer Identification Number or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification. An EIN is required to operate a US company and we will obtain one for you as part of our service.
What is an EIN Tax ID?
The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification.
When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN), and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN. These numbers are used for tax administration and must be not used for any other purpose. For example, the EIN should not be used in tax lien auction or sales, lotteries, etc.
An EIN isn’t a tax or legal requirement for every business, but even so, there are several advantages to applying for one. An EIN gives you flexibility as you add employees, take on clients, or otherwise grow your business. Administratively, an EIN makes it easy to apply for a loan or open a business bank account.
Who Needs and EIN?
Obtaining an EIN Tax ID from the IRS - The guidelines used by the IRS for determining if an Employer Identification Number (EIN) is required implies that most businesses must have an EIN. Besides, acquiring an EIN is an important step to establishing your business and will help you keep your legal and financial matters in order.
As soon as you launch your business, you’ll need to apply for an EIN. You can wait until you’ve registered your company in the state where you plan to do business, but you’ll need an EIN before you can open a business bank account.
A company’s EIN number is unique to each business. It’s used to file your business’s tax return and pay your employees, and most banks or credit unions won’t open a business account until they have an EIN. The nine-digit number never expires, and it will never be reissued to another business. So, no other business will ever have your EIN number assigned to them even if you go out of business. So an EIN helps protect your business’s identity in the same way that your Social Security number helps protect your identity.
1. The IRS
EIN Tax IDs are issued by the Internal Revenue Service. All companies that intend to operate in the US and use the US financial system are required to have an EIN tax ID number.
2. Getting an EIN
Part of our service is to work with the IRS to obtain an EIN for your business. Once we have filed your entity formation with the state, we will work with the IRS to obtain your EIN tax ID number.
3. US Bank Account
In order to open a US business bank account, an EIN is required by all financial institutions for tax reporting purposes to the IRS. Once you have an EIN you can proceed to open a US business bank account.
In some cases where required, we will use an online notarization service to validate your identity as the company founder or representative in order to secure a US business address. To complete this process we use a online notarization platform provided by our partner, Notarize, an online notary public.
US Business Address
To open a company in the United States, you are required to have a US business address in the state of incorporation. Once step 1 has been completed, we will obtain a registered business address for you in the state of your company formation. This address serves as a business address and registered mail forwarding address.
Filing Documents with State
For step 3 in your company formation, the filling of incorporation documents with the state or federal government is required. As part of our U.S company formation services we will file these documents on your behalf. This is part of our incorporation service.
U.S Business Bank Account
Foreigners (non-U.S. residents) can open a U.S. business bank account. We have partnered up with an online bank that specializes in providing U.S. banking services to international, non-resident owners of U.S. companies that we can refer you to, to setup a business bank account online.
Obtaining an EIN Tax ID
An EIN Tax ID is required by the IRS and U.S Banks to track your business associated income and operate your business legally. As part of our U.S business formation services we will obtain an EIN TAX ID on your behalf for your U.S. company. This is part of our incorporation service for all of our company formation packages.
Registered Agent Services
If you’re forming a corporation or a limited liability company, you’ll need to select a registered agent for your business and provide the agent’s name and address on the formation documents you file with the state. We can provide this service on your behalf. We offer registered agent services in 50 states.
Bylaws and Resolutions
Bylaws and resolutions are the initial decisions of your corporation’s board of directors and basic "operating rules" of your corporation. As part of our U.S company formation services we will provide initial drafts of these on your behalf. This is part of our incorporation service.
International Docs Delivery
As part of our service for our clients, where you select the option for a corporate kit, we will deliver your business incorporation documents, EIN tax ID forms and any additional selected supplements to you anywhere in the country (or internationally) as part of our service offering.
Download our U.S. Company Formation Brochure -
Access our 25 page brochure on setting up a company in the United States as a non-resident - A step by step overview of our LegalTech company formation platform and services