What is IRS Form SS-4: A step-by-step guide to getting an EIN

Key takeaways

• IRS Form SS-4 is used to obtain an Employer Identification Number (EIN) for your business or other entity such as a trust or estate.
• The SS-4 form requires detailed information about the business, including the legal name, business type, and reason for applying.
• You can apply for an EIN directly through the IRS website or by mailing or faxing your SS-4 form.
• Filing your SS-4 online is faster and simpler, and in many cases, you’ll receive your EIN immediately.

The Federal Employer Identification Number (EIN) Application, otherwise known as IRS Form SS-4, is an official document used to request a Federal EIN. Essentially, you apply through Form SS-4 to obtain a unique nine-digit number that can be considered the Social Security number for your business entity.

Purpose of the SS-4 Form

An EIN is necessary for certain businesses, as it allows the IRS to identify your business for tax purposes when it is not appropriate to use your Social Security number. The EIN can be used in various business activities such as opening business bank accounts and paying employment taxes.

An EIN isn't just a recommendation, but it's often a requirement for many types of businesses. Let's explore some of the reasons why a business needs an EIN:

1. Business formation: When you form a business structure like a corporation or a partnership, an EIN is generally required, as it provides an ID for your business for tax purposes.
2. Hiring employees: If you're a business owner planning to hire employees, the IRS requires you to have an EIN to handle employment taxes, employee tax withholdings and reporting.
3. Opening business bank accounts: Traditional banks and online financial institutions often require an EIN to open business bank accounts. Having a separate business banking account can also help to differentiate personal finances from business transactions, aid in bookkeeping, and make tax time more straightforward.
4. Obtaining business licenses and permits: Business licenses and permits often require businesses to provide their EIN.
5. Forming certain trusts, pension plans, or non-profits: Certain entity types that aren't necessarily traditional businesses also often need an EIN. These can include trusts, pension plans, and non-profit organizations.

Required information on the SS-4 Form

The SS-4 form requires detailed information about the business. This includes the legal name and taxpayer identification number (TIN) of the sole proprietor or authorized individual, details about the business type, and the reason for applying for an EIN.

Let's break down the key elements of the SS-4 form:

• Legal name and trade name: Include your official business name and, if different, the name your business operates under.
• Executor, Administrator, Trustee, or “care of” name: The person handling the application process on the company's behalf.
• Mailing address: The primary address where the business receives official mail.
• County and state where principal business is located: The physical business location.
• Entity type: Specify your business structure (corporation, partnership, sole proprietorship, etc.).
• Reason for application: List out why you need an EIN. This can range from starting a new business, hiring employees to changing organization type.
• Third Party Designee: If a third-party is handling this process, include their info.
• Business details: Information about the goods you sell, services you provide, or other relevant activities.

The application process for an EIN

Filing online for an EIN can be done directly through the IRS website. The immediate processing of forms ensures a streamlined application process. But don't worry if you can't apply online; there are alternative methods available.

How to file online

Filing your Form SS-4 online is the faster and cleaner way to process your application. Visit the IRS website, navigate to the online registration process, and follow the step-by-step instructions.

Why file online

Filing the SS-4 form online comes with several advantages. Along with being free, it's quicker and can be done anywhere, anytime. Once you submit the form, the information is processed immediately, and, if eligible, you’ll receive your EIN instantly. This speedy process can help streamline your business operations.

TurboTax Tip: Keep a copy of your EIN in your records after completing your form SS-4. This can be useful for future reference, such as if you need to verify your EIN later and simplify your daily operations and annual tax filing.

What to do if you can’t complete it online

If you can't apply online, alternative options include mailing or faxing your SS-4 form to the IRS. Although these methods take longer, they still serve as viable ways to acquire your EIN.

Third Party Designee

If you'd rather have someone else complete the SS4 form process for you, you have the option of designating a third party to handle your application.

IRS Form SS-4 includes a section where you can specify a third party designee. This person acts on your behalf. They receive the EIN once it's assigned and can answer questions about the completion of Form SS-4.

Who can be a Third Party Designee? We're talking about either individuals you trust (like a family member or close friend) or professionals such as your accountant, attorney, or a paid tax preparer. It's someone who's familiar with your financial details and whom you trust to represent you accurately and responsibly.

The designee will need to provide their name, address, phone number, and their relationship to the business owner or company on the form.

Remember, you're giving considerable permission to your designee, so it's essential to take caution. Ensure that they fully understand their responsibilities and can handle the role effectively. Once your application is approved and you have received your EIN, the third-party designee’s authority to act on your behalf concludes.

Form SS-4: The first step in your entrepreneurial journey

Starting a business can feel complex, but the good news is the IRS SS-4 Form is straightforward and will secure the all-important EIN for your business. This isn't just paperwork; it’s concrete progress toward launching your business.

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