Here is Step by step instructions on how to apply for an EIN and why it is beneficial:
Step 1. It would help if you went to this link to obtain your EIN: Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online.
At the bottom of the page, you will see a box that helps determine if you are eligible for an online account or apply over the phone by calling (800) 829–4933. The online application process is quick and simple, but make sure you have all information on hand before starting the process because there is no turning back once you start. The screen provides Step by step instructions on how to complete your application for an EIN Online, says Aron Govil.
Step 2. Upon accessing the Employer ID Numbers (EIN) Online service, you will see a series of screens to apply for your EIN.
The first screen provides general information about the online application process and includes brief instructions on proceeding. Before going any further, you must read these instructions because this section also contains an advisory about security, which is very important when obtaining personal information over the Internet. In addition to reading through this advisory statement, you should be careful when submitting social security numbers, dates of birth, and other personally identifiable information because identity thieves have become increasingly active in recent years using knowledge gained from public records or employees who have access to such data to commit fraud against individuals by filing tax returns in their names.
Step 3. The second screen provides contact and payment information for the service and a list of documents that may be required to support certain applications.
This is especially helpful when applying for business rather than individual purposes because supporting documentation would be different depending on your situation.
The third screen lists the forms that require an EIN to complete online. There are options available to individuals who must file Form 1040, Form 1040-ES, or Form 940. If you do not need any of these forms, there should be no reason you cannot proceed right away with obtaining your EIN application by clicking “Continue,” located at the bottom of the page.
If one of these listed forms applies, e-file your application right away by clicking on “Apply for an EIN.”
Step 4. The fourth screen presents a series of basic questions that will help the online system determine if you qualify to apply for your Employer Identification Number (EIN) using this service.
This is where you indicate whether you are an individual or a business. Suppose there is no option available providing your selection. In that case, this service cannot be used, and you must go through other channels such as contacting a tax professional or filing paper forms yourself. There is also a check box on the fourth screen with general information about employment taxes and how they can affect your account. It will help if you read before clicking continue at the bottom of the page to apply for your EIN further.
Step 5. The fifth screen requests that you read through carefully all of the information regarding your EIN application and verify that it includes everything that applies to you.
When you are sure that this is accurate, click on “Confirm & Continue.”
Step 6. The sixth screen provides a confirmation page with an overview of the information provided by you when applying for an Employer ID Number (EIN).
You must read through it to make sure there are no mistakes and if everything is accurate, click “Submit” at the bottom of the page to complete your application for your EIN. If something needs to be changed, click “Cancel” and return any screens which require more input from you.
Finally, the seventh screen summarizes your request for an Employer Identification Number (EIN) and provides information regarding your assigned EIN. This information is presented in email and online, depending on whether you requested to receive correspondence by email or regular mail.
Step 7. If you select to receive your EIN by email, then the final screen provides you with a confirmation number
An explanation of how to use it when filing tax returns or to apply for licenses to prove that you have registered with this federal agency. The page will also give you access to any other documents created during the application process, such as W-9’s which can be printed out if necessary.
As long as you follow the steps in order, you should have no difficulties applying for an EIN. Suppose you still require assistance before applying for your Employer Identification Number (EIN) online. In that case, taxation professionals are available to help, or paper forms may be required depending on what type of business you are running and whether employed staff will be used.
As you can see, the process is fairly straightforward, and there are no complex steps that need to be followed to apply for an EIN. If this service had not been made available by the IRS, most individuals would have limited options of obtaining one, requiring them to file paper forms or use an accountant or tax professional. As per Aron Govil, this new option makes it easier than ever before for all businesses, whether online or traditional brick-and-mortar retail stores, to complete their federal registrations with ease without having to involve third-party services.
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