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Who Needs an EIN | ||||||
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According to the IRS, your business requires an EIN under any of the following circumstances:
Even if your business doesn't fall into any of the above categories, you may still be required to get an EIN if you want to open a business bank account, apply for business licenses or apply for a loan from a bank or financial institutions. Please note that businesses may need a new EIN when their ownership or structure has changed. |
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2. |
How to Apply for an EIN | ||||||
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All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN unless you are a foreigner) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity. Please note effective May 21, 2012, to ensure fair and equitable treatment for all taxpayers, the Internal Revenue Service will limit Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by fax or mail.
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3. |
What Documents Are Required for EIN Application | ||||||
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For the purpose of applying the EIN with IRS, the following materials should be prepared and provided: (1) The company’s registration document (for example, certificate of formation) and registered address; (2) Passport copy of the responsible person of the company; (3) Responsible party’s U.S. Taxpayer Identification Number (SSN, ITIN, or EIN), if apply online; (4) Signed application form SS-4, if apply by fax or mail. The documents mentioned above, should be certified or notarized by Kaizen, local notary at the place of the shareholder and manager, lawyer, CPA, or bank manager. |
4. |
How Long Will It Take to Get an EIN |
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If you apply online, you can get an EIN immediately. If you prefer, you can fax a completed Form SS-4 to the service centre for your state, and you will obtain an EIN within three weeks. If you apply by mail, send your completed Form SS-4 at least four to five weeks before you need your EIN to file a return or make a deposit. If you do not have your EIN by the time a return is due, write "Applied for" and the date you applied in the space shown for the number. Do not use your social security number. If you do not have your EIN by the time a deposit is due, send your payment to the service centre address for your state. Make your check or money order payable to Internal Revenue Service and show your name (as shown on the SS-4), address, kind of tax, period covered, and the date you applied for your EIN. |
5. |
Close EIN Account |
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The IRS cannot cancel your EIN. Once an EIN has been assigned to a business entity, it becomes the permanent Federal taxpayer identification number for that entity. Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity. The EIN will still belong to the business entity and can be used at a later date, should the need arise. If you receive an EIN but later determine you do not need the number (for example, the new business never started up or the business will be dissolved), the IRS can close your business account. You can send IRS a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you wish to close your account. You must file the appropriate tax return(s) and pay all tax dues before closing your account. |
6. | Application Service Fees |
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Our service fee for handling the EIN application is USD300. We will email the EIN to you upon receipt from IRS. Kaizen U.S. office is a professional CPA firm, offers complete compliance services and business support, such as bookkeeping, financial statement audit, filing tax return, making payroll, etc. Please consult with Kaizen for more details. |
Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |