EIN application service

An Employer Identification Number (EIN) is a federal tax ID used by businesses for various tax purposes. It is free to apply for an EIN directly through the IRS. The application process can be completed online, by fax, or by mail, with online applications providing immediate receipt of the EIN for eligible U.S. applicants. International applicants can apply by phone. Businesses generally need an EIN if they have employees, operate as a corporation or partnership, or are required to file certain tax returns. Key IRS rules include applying for only one EIN per responsible party per day and forming your legal entity with the state before applying for an EIN to avoid delays. After obtaining an EIN, businesses often need to complete state-level registrations for state tax IDs, withholding, sales/use tax permits, and unemployment insurance, as well as file annual reports with the Secretary of State. Common mistakes to avoid include using paid services for EIN applications and not forming the business entity prior to applying for the EIN. Practical next steps after getting an EIN involve opening a business bank account, registering with state tax agencies, obtaining necessary permits, setting up payroll, maintaining EIN records, and filing Form 8822-B for any updates to responsible party or address.