An Employer ID Number (EIN), also known as a Federal Tax Identity Number, is used to identify a business entity. Applying for an EIN is one of the many important steps for managing your company.
Do I Need an EIN?
To put it simply, if you are a corporation or have employees, you will need one. EINs are important for tax compliance purposes, and you’ll also need one to open your company bank account. If you'd like to know more, the IRS has provided detailed guidance on EIN requirements. Consult your lawyer or tax advisor if you have any concerns.
Obtaining an EIN
At the beginning of the Employer Identification Number (EIN) workflow, you will be presented with two options: (1) Engage Shoobx to request your EIN or (2) Obtain your EIN from the IRS yourself and upload your EIN documentation after receiving it.
Engage Shoobx to request your EIN
If you choose the first option, Shoobx will submit a request to the IRS on your behalf for a small fee. Just answer some questions about your company, and Shoobx will send an application for your Employer Identification Number to the IRS. It will take about one week for the process to be completed. If you are a foreign national, this may be one the of simpler options available for obtaining an EIN for your company. Shoobx will generate the application after you enter the necessary information, and you will have a chance to review the document before you pay the fee and submit it. At the Checkpoint page, you should download and review the PDF and return to the "Provide EIN Information" page if any changes need to be made. Shoobx will collect the necessary signatures after you move past the Checkpoint, and we will submit the application after you pay the associated fee.
Obtain your EIN from the IRS yourself
If you choose the second option, you will have to directly request an EIN for your company from the IRS. If your company is located in the United States and the applicant has a valid taxpayer identification number (a Social Security Number, an Individual Taxpayer Identification Number, or another Employer Identification Number), you can apply for your EIN using the IRS's EIN Online Application. Any applicant can submit Form SS-4 via fax or mail.
The Shoobx workflow will guide you to apply for an EIN and upload the documentation. You can begin the process of getting an EIN once you reach the "Wait for Filing" step in the incorporation workflow.
The beginning of the workflow gives you a link that will bring you straight to the IRS's EIN application.
When you have completed the process, return to the EIN workflow to upload your documents and enter your EIN number.
It's that easy!
EINs for Foreign Nationals
If you’re a foreign national (not a U.S. citizen or resident alien and you reside outside of the U.S.) who starts a company in the United States, getting an EIN can be slightly more complex. You can’t apply for it online through the IRS unless you have an ITIN (Individual Taxpayer Identification Number). Under these circumstances, if you do not engage Shoobx, your options for obtaining an EIN are (a) get it yourself over the phone by calling the IRS directly, (b) mail or fax in the SS-4 to the IRS, or (c) hire a service provider to get the EIN for you. (You can learn more about these options in our blog post on EINs.)
When you’re done, make sure to return to the EIN workflow and update Shoobx with your EIN information.
More Information About EINs
The IRS’s website has an incredible amount of detailed information about EINs and other tax-related queries. If you have any questions, consult the IRS for the most up-to-date policies and procedures.
Article is closed for comments.