Obtaining an Employer ID Number in the US
In the United States, the Employer Identification Number or EIN is also known as the Federal Tax ID Number. When someone does business in the United States, he/she can use this EIN to identify the company and file taxes with the authorities.
In the United States, every business is required to have an Employer Identification Number. The federal government issues this unique employer identification number. In the United States, the IRS uses an Employer Identification Number to easily and quickly identify each business for tax purposes.
If someone needs to get an employer ID number from a country other than the US, the process is very simple and easy to get. In this article, we will discuss the complete procedure for obtaining an employer identification number in the United States.
What is an Employer Identification Number in the US?
A US Employer Identification Number is a unique 9-digit number assigned by the Internal Revenue Service (IRS) to every business operating in the United States. Like Social Security numbers, these employer identification numbers are unique to each entity. These numbers are used by the Internal Revenue Service (IRS) to identify entities.
Therefore, every business in the United States is required to provide this EIN on all tax-related transactions, forms, and documents. Employer ID numbers cannot be used for any purpose other than tax administration. The Employer Identification Number or EIN is also known as the Federal Tax Identification Number or Federal Employer Identification Number.
When to apply for an Employer Identification Number in the US?
To clarify the US employer ID number requirements, and who needs to apply for the same, here is a list of scenarios that are mandatory when obtaining an employer ID number in the US:
- when establishing a new business;
- Hire employees in a new business, including domestic employees in the case of a sole proprietorship;
- Opening a business bank account for the new institution;
- The ownership or organizational structure of the new enterprise has changed;
- Formation of companies, limited liability companies, partnerships, trust companies, etc.;
- Business withholding income tax on income paid to one or more non-resident aliens;
- The company has a Keogh plan, a retirement plan for self-employed individuals;
- Partners and members may file any of the following tax returns, such as excise, employment, alcohol, tobacco, and firearms tax returns;
- In the United States, corporations involve corporate structures including real estate, trusts, non-profit organizations, real estate mortgage investment channels, program administrators, and farmer cooperatives;
- The company is in the business of importing goods into the US to sell on marketplaces such as Amazon. Customs requires an Employer Identification Number when the value of the goods exceeds a certain amount or when the goods are shipped to the United States by sea.
Eligibility Criteria for Obtaining an Employer Identification Number in the United States?
The main eligibility criteria set by the Internal Revenue Service (IRS) are:
- The business must be located in US territory; and
- Applicants for EINs must have a valid Taxpayer Identification Number (TIN).
What is the procedure for obtaining an employer identification number in the United States?
In the United States, to obtain an employer identification number, citizens can apply.