101: Easy Way To Get Your EIN
For those of you out there that haven’t yet had the pleasure of speaking with a representative here at Harvard Business Services; you will find that we are most helpful and friendly and ready to take care of your corporate needs.
So, if you have a company that is incorporated through Harvard, congratulations! Now what?
If you plan on conducting business in the United States, it is mandatory to apply for an EIN.
An employee identification number (EIN) is a nine digit number that the IRS assigns to employers, corporations, sole proprietors, partnerships, government agencies, non-profit organizations and many other business associations to identify tax accounts.
Harvard Business Services, Inc. provides a fast and efficient online service that will save you time and frustration. All you need to do to get started is click HERE. Please read further for a step by step explanation of the online application.
The first page will ask general details such as the company name, an email address, phone number and the type of company you have incorporated. This information will help HBS to be efficient with your request and allow us to contact you if necessary and forward the prepared SS-4 application via email for accuracy and signature.
Next, the IRS requires a Mailing address. This will be used to forward a formal acceptance letter which will include your Employer Identification Number. Please note the county is required. If the mailing address for the company differs from the Principal place of Business (physical location), our application allows you to include both. The final question on this page asks about a trade name aka doing business as or DBA. Kindly include the name if applicable and save and continue.
Moving on to the Responsible Party details.: As stated on the application, the responsible party must be authorized to receive correspondence from the IRS. A responsible party may be a principal officer, general partner, owner, grantor, or trustee. If the responsible party has a valid social security number, you may safely enter it here. However as noted, the online form can be submitted to HBS without the SSN, ITIN or Member EIN number. We will send the application to you for review, and you may add the number at that time. NOTE: We cannot apply as a nominee; you must sign the application before we can submit it to the IRS for you.
Once you have completed the details of the responsible party, please save and continue. You are more than half way through the application! Now, we are getting into more specific details of the company. To make this very easy, we have included options for the category that best describes your business. Please provide a description of your business activity. A short explanation will suffice. The State of incorporation and date in which the company was formed follows. If you do not know the date your company was formed, feel free to contact our office or refer to your Certificate of Incorporation.
Is your closing month of the accounting year December? If not, please adjust accordingly. If you are forming a Limited Liability Company taxed as a partnership, your year-end must be December 31.
Then, if you are applying for an LLC, please include the number of members involved. The IRS defaults a single member LLC as a Sole Proprietorship. Two or more members default as a Partnership. For Corporations, you will be asked the type of entity? The drop-down box lets you choose from C-Corp which can be described as a classic or general corporation taxed pursuant to Subchapter C. Or, an S-Corp which is a general or close corporation that elects to pass income, losses, deductions and credit to their shareholders in order to avoid double taxation. For any additional information, please call our office.
Does your company plan on hiring any employees in the next 12 months? Please be sure to keep in mind this is for US employees only. Save and Continue.
If you will be hiring employees, you will need to know the first date wages will be paid, and the highest number of agricultural (ie., farmers), household (ie., driver, maid) and other employees expected in the next 12 months. Please select the appropriate answer regarding total wages expected and continue to the next page.
The final page provides the services in which we will process your application. If you decide that our Standard service suits your needs, please expect the emailed application for review with in 24 business hours. Rather have the application in your hands before lunch time? Check out the Express Service! You’ll be on your way to opening that bank account in no time. We make it easy for you.
I Can Not Find My EIN!!! Don’t Panic,Try This:
If you know you have applied for an Employer Identification Number (EIN) or Tax Identification Number, but have misplaced it, there are several options to try. (The EIN is also known as a Federal Tax Number, and is used to identify a business entity.) If Harvard Business Services, Inc obtained the EIN number on behalf of your company we can provide the number to you right over the phone on our toll free number.
If we did not obtain the EIN, look back in your early records of starting up your business. When you first applied for an EIN, the IRS issued a computer-generated notice. This confirmed your application and serves as a receipt of the EIN. The next option to try is contacting your bank, because your EIN was required to open the business account. In addition, if you applied for any local or state license, that agency should have your EIN on record, as well as on any correspondence regarding your business.
Finally, if you have exhausted these methods and are still unable to locate the EIN for your business, you can ask the IRS to search for it. This can be accomplished by calling the Business & Specialty Tax Line (800) 829-4933. They are available Monday – Friday, 7:00am – 10:00pm. They will ask questions to make sure you are an authorized person, such as a Member, a, a corporate officer or director. When this has been established, they should provide the number to you over the telephone. Be prepared to spend some time on the phone waiting.
EIN Nominee Service…A Thing of the Past
We occasionally get a call asking for a nominee service to obtain EIN numbers. For various reasons, clients would rather not give their personal information to the IRS. In the past, some nominee services offered to obtain an EIN for a client or company by providing the IRS with a name and Social Security Number that is not affiliated with the company.
The IRS has made it clear that this is no longer acceptable. The most recent statement from the IRS concerning this matter, dated February 10, 2010, states:
The Internal Revenue Service revised Form SS-4, Application for Employer Identification Number, to clearly identify the applicant’s true owner. Effective January 2010, all mail, fax, phone, and electronic EIN applications must disclose the name and taxpayer identification number of the true “responsible party” for the entity requesting an EIN.
A nominee is an entity with delegated authority to act in name only and can never be the “responsible party” for the Form SS-4 application. The IRS does not accept the use of nominees to obtain EINs. The SS-4 must be signed by an individual with the authority to legally bind the entity; therefore, it cannot be signed by a nominee.
Prior to the SS-4 revision, taxpayers obtained EINs using nominee individuals for the EIN application process. Entities that used nominees on their applications should consider updating the information shown on the original application. Third party designees filing online applications must retain a complete copy of the paper Form SS-4, signed by the responsible party, and a signed authorization statement, for each EIN application filed with the IRS.
Using nominees in the EIN application process prevents the IRS from gathering appropriate information on entity ownership. It may also facilitate tax non-compliance by entities and their owners. Clearly identifying an entity’s true owner makes it difficult for taxpayers to conceal their income and assets. The IRS will pursue penalties, injunctions, or other enforcement action to prevent the misuse of EIN applications.
To read the entire article, click HERE.
Businesses need an EIN to open bank accounts, hire employees, and conduct business. To apply for an EIN for your business, you can file directly with the IRS or we at Harvard Business Services can eliminate the hassle and file the document for you, with your signature. We can expedite your application, for a reasonable fee and guarantee you an EIN within 24 hours. Our job is to obtain the EIN on your behalf in order to relieve you of the frustration, and allow you to do what you do best. Operate your business!
You can learn more about the fastest and easiest way to get your EIN, click HERE.
An EIN Number Never Dies
Filed Under: INC Knowledge
Tags: Closing Your Company, EIN Number, INC Knowledge, Taxes
When closing a small business, there are many things to consider. On a Federal level, typically a business must file an annual return for the year it goes out of business. Depending on the business structure or whether the business had employees, there are a number of tax forms that typically must be filed with the IRS before a business is deemed closed by the federal government. Not to mention state tax requirements…..but once the fiscal responsibilities have been met and the entity has been formally dissolved, one step that is frequently overlooked is canceling the EIN.
Many business owners think that once all final tax filings have been made, the IRS will automatically close or discontinue the entity’s EIN, but just as the title of this article implies the EIN for the business is never discontinued, reassigned or reused. Regardless of whether or not an EIN was ever used, the number is PERMANENT. An EIN cannot be canceled by the IRS; however, the business account associated with the EIN may be closed. If the EIN is needed in the future, it will still belong to the business entity even after the account is closed.
To close a business account with the IRS, a written letter is required to be sent to: Internal Revenue Service, Cincinnati, OH 45999. The letter must state the reason for closing the account and include the EIN, the complete legal name of the entity, and the business address. If a copy of the EIN Assignment Notice is available, be sure to include it with your letter. For entities that are deemed liable for business taxes or have been notified that business tax returns are due, the appropriate tax returns will need to be filed before the EIN account can be closed. To be absolutely sure that all necessary filings have been made to close your business with local, state, and federal tax agencies, Harvard Business Services strongly suggests that you seek the assistance of a qualified tax professional.
If You Are In Business – Please Identify Yourself
Some of the most common questions that we encounter incorporating our clients are regarding the definition of and necessity for an Employer Identification Number (EIN).
What is it? Do I need it? How do I get one?
An EIN or Employer Identification Number is a unique number that is assigned to a business by the Internal Revenue Service. It is sometimes referred to as a Tax Identification Number or a Tax ID Number. The number has nine digits and usually appears as follows: 12-3456789. It serves a purpose very similar to an individual’s social security number and is used on tax returns, business permits, applications for bank accounts, credit applications and many other applications. Generally, all businesses need an EIN and stiff penalties apply if you fail to get one. Specifically, if you have employees, offer a benefits or pension plans, operate as a corporation or partnership or file federal tax returns you’ll need an EIN. Banks usually require an EIN before they will open an account for a company. Also, if you withhold taxes on income other than wages paid to a non-resident alien, an EIN is required. Involvement with any of the following organizations may also require an EIN Number: Trusts, IRAs, Exempt Organization Business Income Tax Returns, Estates, Real Estate Mortgage Investment Conduits, Non-Profit Organizations, Farmer’s Cooperatives and or Plan Administrators.
Having a separate tax ID number for a business will also serve to create boundaries between any individual’s social security numbers and the respective business number. This separation serves to limit the liability of members or shareholders and protects any personal assets which are not involved with the business. Sole proprietors may also have an EIN number – but only one.
You may require a new EIN number if you change your business structure or if you are a sole proprietor filing for bankruptcy, incorporating or operating as a partnership. Generally, all types of corporate entities including corporations, partnerships and limited liability companies will need a new tax ID number when they are formed. Single member LLCs are disregarded entities, so they do not need one. Consistent identifying factors are essential to the strength and security of any business entity and the EIN is your company’s key identifier.
The IRS offers the service online at: http://www.irs.gov with the completed SS4 form. The service is free of charge with the IRS – but can be a real hassle to obtain when time is of the essence.
Obtaining an EIN is made very easy and efficient through Harvard Business Services web site. Just go to http://www.delawareinc.com/ourservices/taxid.cfm Most clients will obtain this number as part of their initial filing package, but you can file after forming a company if you initially neglected to do so. We can usually obtain your tax ID number in one to three business days with no effort or frustration on your part. The cost is minimal for the time savings of having to call the IRS and wait on hold for 45 minutes until they get to you. That’s why we operate under the motto: “We work hard to make forming a company EASY for you!”
