Start A Business

Step 7: Employer Identification

Employer Identification Numbers (EINs) are used to identify the tax accounts of employers, sole proprietors, corporations, partnerships, estates, trusts and other entities.

If you don't already have an EIN, you need to get one if you:

• Have employees,
• Have a Keogh plan,
• Operate your business as a corporation or partnership, or
• File any of these tax returns:
• Employment
• Excise
• Alcohol, tobacco, and firearms

Applying for an EIN. Applications for EINs can be completed and submitted online at the IRS website www.irs.gov. Click on the "Businesses" link. Alternatively, taxpayers can apply by calling the IRS at 800-829-4933, or by mailing or faxing a completed Form SS-4, Application for Employer Identification Number. See the Form SS-4 instructions (at www.irs.gov) for more information. You can get Form SS-4 at IRS or Social Security Administration (SSA) offices.

You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. If you apply by telephone, you can get an EIN immediately. If you apply by mail, file Form SS-4 at least 4 to 5 weeks before you need an EIN.

If you do not receive your EIN by the time a return is due, file your return anyway. Write "Applied for" and the date you applied for the number in the space for the EIN.

Single-member LLCs. For wages paid after 2008, a single-member LLC is treated as a separate entity for employment tax (even if the LLC's income and expenses are reported on Schedule C). Thus, if they do not already have one, single-member LLCs taxed as sole proprietorships paying wages after 2008 must obtain their own EINs, which will be reported on line D.

Observation: For wages paid before 2008, a single-member LLC taxed as a sole proprietorship could report and pay employment taxes on wages paid to employees using either the LLC owner's name and EIN or the entity's name and EIN.