A Form SS-4, Application for Employer Identification Number (EIN), is a United States Internal Revenue Service (IRS) form used to request a nine-digit Employer Identification Number.
An EIN is a unique nine-digit number assigned to businesses for tax reporting purposes, and it serves as a Social Security Number (SSN) or Taxpayer Identification Number (TIN) for a company. It is used for many business activities, including opening a bank account, hiring employees, and filing tax returns.
When to Use?
You can use Form SS-4 if you need an EIN to file federal taxes or report information as an employer, corporation, partnership, estate, trust, or similar business entity.
The information on the SS-4 form is used to establish your business tax account, allowing the IRS to identify your business and its associated accounts.
Why Do I Need to File Form SS-4
There are many reasons why you would need to file the form and apply for an EIN, such as if you:
- Started a new business
- Hired employees
- Need to take out a small business loan
- Opened a business bank account
- Created a trust
- Created a pension plan
- Bought an ongoing business
- Are you administering an estate
- Are a multi-member LLC, or more
Only one EIN will be assigned to you per business entity, except when you enter a new partnership or own a group with multiple affiliated corporations.
How to Get an Employer Identification Number (EIN)
Obtaining an Employer Identification Number is free and can be done via phone (for international applicants), fax, mail, or online. The process involves completing Form SS-4 on the IRS website.
Essential details required on the form include the company’s main officer’s name and taxpayer ID. Information like business type, purpose of applying, start date, and principal business activity must also be provided. To apply online, the business should be within the US or its territories, with EINs assigned immediately upon validation of details.
Eligibility Criteria for EIN Application
The Internal Revenue Service mandates that an EIN application must include a designation for a “responsible party.” This individual should have direct control or influence over the entity seeking the EIN, particularly in managing its assets and financial resources. The responsible party needs to be a natural person and cannot be a separate legal entity, with the exception being applications from government bodies.
Typically, this role is filled by the entity’s owner, general partner, grantor, trustor, or principal executive officer. In cases where two individuals are equally eligible, the entity has the discretion to appoint either as the responsible party.
Should there be a change in the responsible party, the entity is required to inform the IRS of this change within a 60-day window, utilizing Form 8822-B for this notification.
Distinguishing Between a Responsible Party and a Nominee
It is common for entities to appoint a nominee to represent them during their establishment phase or for an extended period. However, a nominee who has restricted authority does not meet the criteria to be considered as the responsible party for an EIN application. Applications that list a nominee in place of an actual responsible party are subject to rejection by the IRS.
Option for Third-Party Designees
The application form includes a provision for appointing a third-party designee. This appointee is authorized to obtain the EIN on behalf of the entity and to communicate with the IRS, especially in scenarios where the responsible party prefers not to engage directly in EIN-related procedures, apart from their inclusion in the application.
TIN vs. EIN
The Individual Taxpayer Identification Number (TIN) is a broad classification encompassing various numbers issued by the government to individuals and entities for tax purposes. An Employer Identification Number, also referred to as a Federal Tax Identification Number (FTIN), falls under this category.
Alongside EINs, there are other forms of TINs, such as Social Security numbers, which are widely used by individuals, and Individual Taxpayer Identification Numbers, designed for individuals who are ineligible to receive a Social Security number.
How to Apply
Applying can be done through various methods, each with its own processing time. The IRS offers different application channels to accommodate applicants’ needs, whether they are based domestically or internationally. Below are the key options for applying for an EIN:
- Online Application: Use the IRS EIN Assistant for an instant EIN.
- Fax Application: Send Form SS-4 to the designated fax number, with a processing time of four days.
- Mail Application: Mail it to the specified address; expect up to four weeks for processing.
- For Foreign Individuals without ITIN: Call the IRS International Tax Line at +1 (267) 941-1099 to apply for an EIN.
What if I No Longer Need My EIN
After an EIN is issued, it becomes a permanent identifier for your business, as the IRS does not cancel EINs. This number is vital for financial reporting, remaining linked to the entity even if no returns are filed. If an EIN is obtained but later deemed unnecessary, you can request the IRS to close your business account associated with that EIN.
This situation often occurs with startups that don’t launch. To close the account, send a letter to the IRS, including the business’s legal name, address, EIN, and closure reason. While the EIN stays active, the IRS business account is deactivated.
Form SS-4 Sample
You can download our free SS-4 form in PDF format and fill it out independently.
Frequently Asked Questions
What Happens if You Lose or Misplace Your EIN?
If you misplace your EIN, first check the notice from the IRS issued when your EIN was assigned. You can also contact your financial institution or look at previous tax returns. If these options don’t work, call the IRS’ Business & Specialty Tax Line at 1-800-829-4933 to have your identifying information ready.
Does My Business Need an EIN?
Yes, most business entities require one. This includes entities with employees, corporations, partnerships, and those filing certain tax returns (Employment, Excise, Alcohol, Tobacco, Firearms) or withholding income taxes on income other than wages.
How Do I Find an Employer Identification Number?
An EIN can be found on a tax return, applications for bank accounts or credit, state licenses or permits, or forms related to independent contractor work or business payments.
How Long Will It Take to Get an EIN?
You can receive an EIN immediately when applying online. If applying via fax, it may take up to two weeks. For paper mail applications, the IRS usually quotes a turnaround time of four to five weeks.
Who Does Not Require an EIN?
The following use cases do not require an EIN:
- Sole Proprietors: Those operating as sole proprietors without any employees can use their personal Tax Identification Number (TIN) in place of an EIN.
- Independent Contractors: Independent contractors are not required to have an EIN and can utilize their TIN.
- Non-Income Generating Trusts and Estates: While many trusts and estates must have an EIN, those that do not generate any income are exempt from this requirement.
