Any business operating in the United States is required to apply for what's called an Employer Identification Number, or EIN. This is effectively the identification number of the business and once one has been issued to your company, it will thereafter become intrinsically linked to your business's financial activities and you will be required to use this number when filing your company taxes and opening an account with your bank.
What is an EIN number?
To start off, an EIN number is a unique nine-digit business identification number that is issued to your company by the Internal Revenue Service to serve as an easy and uniform way for governmental financial institutions to keep track of your business and its tax filings. An EIN is free and can be applied for online. The business applying for the number should be located in the US, or US territories, and an EIN number, once used, will not ever be recycled or used again.
When do you need to have an EIN number?
There are many instances where businesses are required to have an EIN number but should you be a sole proprietor with no employees, you will not be required to have an EIN number and are able to use your social security number to file your taxes and legally operate your business. Although an EIN is recommended in order to protect your personal information, it is only required if your company does the following; employs personnel, files excise or pension fund taxes, is a partnership or corporation or withholds taxes for non-wage income paid to a non-resident alien.
When are you required to apply for a new EIN number?
Should the structure of your business fundamentally change, for example, you change your business registration from a sole proprietorship to a corporation or partnership, the fundamental identity of the business changes, and then the company will need to apply for an EIN number. You will also be required to apply for a new one if your business declares bankruptcy and is subject to the relevant proceedings, or if your business is inherited or purchased from another owner.
How to find an EIN number.
An EIN is available to the public, however, only an officer of a corporation, a partner in a partnership, or general partner of a limited partnership is able to access this number and it will only be issued to them after meeting various verification requirements. The easiest way for an officer in a certain business to conduct an EIN number lookup would most likely be to search through your own records for the computer-generated confirmation issued to your company. If you are unable to find that an officer can look at the Securities and Exchange Commission EDGAR online Forms and Filings page and enter your relevant verification information and you may be able to find your EIN number there. Another way is to call the IRS directly during business hours. During the call, you will need to provide your social security number and ask some questions to verify your authenticity, and the IRS EIN Department will send your EIN number to you via fax within a few days. Another way to do an EIN lookup is through your business' documents. If you are a multi-member LLC, Corporation, or any business that has employees, you will have had to file your taxes, which will mean that you will be able to find your EIN number on those original business documents, and should you can also get your EIN from your original business's bank account documents.
An EIN number is intrinsically connected to your company and its financial operations, and so it is important that this number is not made freely available to the public. However, as an officer operating on behalf of the company, there are several channels by which you can easily access your EIN number.
