Does The EIN Application Process Differ For Each Entity?

by - 11/21/2017 09:05:00 AM

Related image

The employer identification number (EIN) has many uses.  Whereas the IRS identifies individual people by social security numbers, it identifies every other type of legal entity by an EIN.  Thus, the EIN can be a trust Tax ID or a Tax ID for a business, nonprofit organization, or church.  No matter what type of entity you choose, though, the EIN application process is the same.
How the EIN Application Process Works
All you have to do to get an EIN is fill out an application form.  You can find the application forms online, such as on the IRS-EIN website.  When you submit the form online, IRS-EIN will send you a confirmation by email.  The email confirmation will contain your EIN.  Therefore, you can then open a bank account for your business or apply for business insurance, filling out forms that require you to enter your EIN.  Your official confirmation from the IRS will arrive by mail within a month of when you submit the email confirmation.
Choosing Your Entity Type
The application form to get an EIN is quite short, but one question asks you to specify your entity type.  The IRS-EIN website contains brief descriptions of each type of entity.  Some of them are very straightforward.  If you are establishing a church or if you are the executor of an estate, you will know it immediately.  When it comes to business entity types, there is a little bit more flexibility.  Consult with a corporate lawyer if you are opening a business and you want to know which entity type will make it the easiest for your business to operate.
The types of entities that use EINs to file taxes are very diverse.  All of them can apply for their EINs through the same simple process.

You May Also Like