10 Tips on EIN Registry

2. Why Businesses Need EIN Numbers

An EIN is a unique identifier for the business and is used mainly for tax purposes. The IRS requires any registered company with businesses, partnerships, employees, corporations, or that files excise, employment, or alcohol, tobacco, and firearms tax returns to have an EIN.

An EIN is similar to a government ID. EINs are used to:

• Open business bank accounts
• Apply for business loans
• File legal documents
• File taxes
• Get a business license

3. How to get an EIN

The application process for an EIN is easy and can be completed online via the IRS website. Applying can also be done by fax or mailing a completed Form SS-4 to the IRS.

An EIN is helpful to obtain as soon as the company is formed. While sole proprietors without employees do not need EINs, having an EIN is ideal for business owners looking to scale their businesses.

Once obtained, an EIN should be stored safely since it is easy to forget. Unlike an SSN, a business’s EIN is not used frequently. However, the company’s tax ID should be available to deal with taxes and licensing.

4. Businesses that Need an EIN

Various companies can apply for EINs, but the number is a requirement for some businesses. The industry needs an EIN if the entity:

• Withholds taxes on income that is paid to a nonresident alien and considered non-wage
• Has employees.
• Operates as a partnership or corporation.
• Files excise, employment; or alcohol, tobacco, and firearms tax returns.
• Has a Keough Plan.
• Is involved in an estate, a trust, a nonprofit, a real estate investment channel, a farmer’s cooperative, or a plan administration.

An EIN is still a wise choice for sole proprietors or owners of single-member LLCs without employees. EINs make separating personal and business taxes more manageable, and they are sometimes required to open business bank accounts or apply for licenses and permits. Without an EIN, business owners resort to using their SSNs in various capacities, therefore sharing personal information.

5. Can I apply for a new EIN if I already have one?

Rather than amending an existing EIN, the IRS asks businesses to reapply. The application process for a new EIN is the same as the first.

Why would a business need to reapply for a new EIN?

• The business changes its structure; for example, it incorporates.
• The business owner buys or inherits a new business.
• The business owner creates a trust with estate funds.
• The business is part of a bankruptcy.

6. Can I look up an EIN number?

So here are a few ways to look up an EIN:

• Contact the IRS. When a business cannot identify its EIN, it should feel free to contact the IRS: at 1-800-829-4933. The company should ensure that an authorized person is making the call, such as a partner, a corporate officer, or the sole proprietor.
• Check the Places Where the EIN Was Recorded. Looking up the business’s EIN should be a relatively simple task, and there is no need to pay for this service or hire out. EINs are used on many vital documents, making them easy to find. These documents include:

• • Tax returns from the prior year: excise, employment, or income should include the EIN.
  • CP 575 Notice: the IRS sends companies a CP 575 when their EIN is confirmed. This notice was probably issued in the manner it was received (digitally, by fax, or by mail).
  • Applications for loans, licenses, or permits
  • Banks and financial institutions: check with the bank or any other institutions that may be familiar with the number. They should have the EIN in their records.

7. Can I verify EIN online?

Some businesses regularly look up other companies’ EINs, based on the nature of their business activities. Sometimes, companies look up a business’s EIN to check its legitimacy before doing business.

If the company in question is publicly traded and registered with the Securities and Exchange Commission (SEC), the business can use the SEC’s Edgar system. This tool allows businesses to search out other companies’ EINs for free.

It is more difficult to find the EIN of a company that is not registered with the SEC, but it is not impossible. Here are some strategies that may work:

• Contact the business’s financing or accounting office and ask for their EIN. Note that they are under no obligation to provide it.
• Use a paid database or hire a service to help with the search.
• Search for the business on the website of the secretary of state, or search for other federal filings online.

8. How do I cancel a EIN number?

Sometimes, businesses apply for an EIN and realize it is unnecessary. Other times, companies shut down. In cases like these, closing the company’s business count with the IRS is the only option.

Companies that have never used their EIN can send a letter to the IRS addressing this issue. It should include the company’s legal name, the EIN, the business’s address, and the reason the account must be closed.

Companies that have already filed a tax return with their EIN must file one final return first. After that, the IRS can close the account. Companies without revenue or expenses over the prior year must file the last return. Be sure to check the box that marks the return as final.

Once the IRS assigns a specific EIN to one business, it never reassigns it. As a result, the EIN remains the permanent federal identification number for that business, even if it is defunct. This means the business owner can reopen the account and reuse the EIN for the rest of their career.