As a church organization, your organization is classified as a non-profit. But do you still need a tax ID? The answer is yes: even non-profit organizations will need an EIN Number, also known as a Federal Tax ID Number. Here’s everything you need to know to get a Tax ID Number for a Church Organization.
Steps to Applying for Tax ID (EIN) Number for Church Organizations
- Prepare Mandatory Business Information
- Apply for a Church Organization Tax ID (EIN) Number Online
- Apply for a Church Organization Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Church Organization?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Church Organization?
- Why Do I Need a Tax ID (EIN) Number for my Church Organization?
1. Prepare Mandatory Business Information
Before you get started, prepare your mandatory business information. Your mandatory business information should include:
- When the church was formed.
- What the church’s official address is.
- Who is responsible for the church.
- Why the church needs an EIN Number now.
With a company, the person responsible is generally the company’s owner. With a church or other non-profit organization, there is usually a number of people responsible, who serve on a board. For the purposes of the EIN application, you can nominate a registered agent to take over the application process. This registered agent will need to list their name and their SSN or ITIN.
2. Apply for a Church Organization Tax ID (EIN) Number Online
Need your tax ID now? You can apply for a church organization Tax ID Number online. The online application process is simple and easy. Not only can the application be filled out within a few minutes, but the EIN Number will be returned to you within sixty minutes.
The easiest way to apply for an EIN Number is to go through a tax ID service. A tax ID service can tell you what information your church needs to provide, and submit the paperwork for you, so you can get an EIN number online.
3. Apply for a Church Organization Tax ID (EIN) Number via Mail or Fax
In addition to applying for a tax ID online, you can also apply for a tax ID through mail or fax. Both mail and fax options involve a physical form, which you’ll fill out with your church information and then sign as a registered agent. Once the form is mailed or faxed, you’ll receive it back after it’s processed. Depending on the method you use, the processing time can be fairly lengthy.
A faxed application should take between three and five business days to complete. A mailed application should take between four and six weeks to complete. This depends on how busy the processing office is. It’s much faster to apply online.
4. How Do I Obtain a Tax ID (EIN) Number for my Church Organization?
Getting a Tax ID Number for a church organization is a simple process! And, if you do it right, it should take only about an hour. Here are the steps to getting an EIN Number or Tax ID:
- Collect documentation regarding the church’s formation. You’ll need to know the legal name of the church, the address, and when it was formed.
- Collect information from the registered agent or a nominated board member. They will need to give their full legal name, SSN, and ITIN.
- Submit this information through a tax ID service online. A tax ID service helps you with your application, making sure that it’s filled out properly.
- Receive your tax ID number in approximately an hour. With an online tax ID service, you shouldn’t need to wait long for your tax ID.
Once you receive your Tax ID Number, you can start using it right away.
5. How Long Does it Take to Obtain a Tax ID (EIN) Number for my Church Organization?
5. How Long Does it Take to Obtain a Tax ID (EIN) Number for my Church Organization?
As long as you apply for a Tax ID (EIN) Number online, you should receive it in an hour. There’s one exception: if the application had incorrect information and needs correction before it can be processed. A tax ID service can help you with this, ensuring that your application is correct before it’s sent in.
If you apply for a Tax ID Number through mail or fax, it’s going to take longer. Mailed in applications will take up to six weeks, while faxed in applications will take up to five business days. Likewise, if there are any corrections needed, you may not find out about those corrections until the application is processed. This will reset the clock and it will take longer to get the tax ID.
6. Why Do I Need a Tax ID (EIN) Number for my Church Organization?
A church organization may be a non-taxable entity, but there are still many reasons that it needs an EIN Number. Tax ID Numbers and EIN Numbers are used for a number of operational processes:
- Opening bank accounts. To open a bank account under the church organization’s name, the church will need an EIN Number. This is also true if the church ever needs credit cards or bank loans.
- Hire employees. Hiring employees always requires an EIN Number, as an EIN Number will need to be on the initial employment forms, as well as the resulting W2 forms. You can temporarily hire an employee without an EIN Number, but you will need it (as well as your business formation documents) eventually.
- Send in returns to the IRS. Sending forms, documents, and returns to the IRS will often require an EIN Number. Even a non-profit, non-taxable entity may still need to file returns, even if payment isn’t being made.
- Accepting tax-deductible donations. In order to accept donations from other people, and have those donations be tax-deductible, a church is going to need an EIN Number.
These aren’t all of the things that you’ll need a Tax ID Number for, but it’s some of the most important things.
A Tax ID Number is extremely important, even for a non-profit, non-taxable organization. Thankfully, it’s fairly easy to get: you can get one in an hour, if you have all of the information in hand.