compliance

What is an Employer Identification Number (EIN)?

A Federal Tax Identification Number (also known as a “95 Number” or “EIN Number” or just “Tax Id”) is a number assigned to a corporation or L.L.C. by the Federal Government for purposes of taxation. The Federal Tax ID Number is to a corporation or L.L.C. as a Social Security Number is to an individual.

Most banks require that a corporation or L.L.C. obtain a Federal Tax Identification Number as a prerequisite to opening a bank account regardless of whether the company will have employees. ActiveFilings.com can prepare your Federal Tax Identification Number Application (IRS Form SS4) at your request.

Once you receive the prepared application from our office, you may contact the I.R.S. with the completed form and obtain the actual “95 Number” over the telephone in just minutes!

Do I need a tax ID number?

If your LLC or corporation does business of any kind, you will need to obtain an EIN. All corporations must have a federal tax ID number to do business, and there are only rare situations (a holding company that does not pay tax of any kind) where an LLC wouldn’t need an EIN. This tax ID number will be required to fill out payroll reports, pay taxes, open a business checking account, etc. The Federal form is called a SS-4.

How to Obtain an EIN

The simplest way to get an EIN is when you hire us to incorporate your business, simply add EIN obtainment as a service. We’ll acquire your EIN for you in 24 hours or less.

However, if you want to acquire the EIN yourself, you can do so for free. Simply visit the IRS website, complete a questionaire, and you’ll have your EIN for free in about 10 minutes—if you have a US social security number. If you are a foreigner, this process is much more tedious and time consuming. You may be better off hiring us to acquire it for you on your behalf.

Does the IRS tell me how much I will have to pay for Taxes?

Neither the state or the IRS notifies of any estimated income taxes that must be paid. They will send you the returns that are required to be filed for the quarterly payroll taxes that may be due for any employees that you may have.

The IRS requires corporations and Limited Liability Companies to obtain an EIN (also called FEIN or just Tax ID). The EIN is not only required to file taxes, but also to open a checking account or any kind of business accounts.

For a very affordable fee, Active Filings can prepare your EIN application (IRS Form SS-4), send it to you for your signature and, once returned, obtain your company’s Tax ID. With ActiveFilings the signing process is as easy as going online and typing your name on the prepared form. The e-sign process is fast, reliable and releases our customers of having to print, sign and fax the document back to us.