If you are a new business entity who has employees, you need to apply for EIN, also called the Employer Identification Number. The Internal Revenue Service assigns an EIN to a business entity for identification. The number allows the IRS to monitor the wages and other payments made by a business entity. It also helps businesses to set up a bank account for their business.
Should I Get An EIN?
You should apply for an EIN if you have:
- Just started a business
- Plans to hire employees, including household workers
- Changed the ownership or legal character of the entity
- Formed a trust, pension plan, corporation, partnership or LLC
- Represent an estate that operates a business following the owner’s death
If you are a beneficiary of an irrevocable trust, you must also obtain a Federal Tax ID number. You can find out more information on how to get an EIN for a trust here.
How Long It Takes To Get An EIN
But how long will it take you when you apply for EIN? Applying via fax to the IRS may not be a good option if you are looking to get your EIN as fast as you can. When businesses apply via fax, the IRS may take about a week to return and around two weeks for business applicants who have not included their return fax number in the form they submitted.
If you decide to apply via mail, you need to wait around four to five weeks before you can receive your EIN. For immediate processing of your EIN, log in to https://www.irs-ein-tax-id.com. The applications are processed and delivered within a few hours or on the same day. If the filing of EIN application was made past 7 p.m. EST, the EIN will be delivered on the next business day.