As an S-Corporation, there are indeed some unique aspects to your organization, but all of these have to do with tax reporting and filing. When you break down the actual organizational structure, expectations of the business, it is the same as any other type of corporation. Whether you are an S-Corporation or a C-Corporation or Partnership, you are always going to need an employer identification number (EIN). The Tax ID (EIN) number is important so that you can conduct normal business as an S-Corporation. Acquiring the number early on in the life of the organization can help you keep things running smoothly as you would expect. The goal is, following this read, you will have a better understanding of what information you need to acquire a Tax ID (EIN) number and also the steps necessary to be taken to complete the S-Corp EIN application process.
Steps to Applying for an S-Corporation Tax ID
- Gathering of the Required and Mandatory Information
- The Online Application Process
- Applying Over the Phone or through the Mail or Fax
- Quick Steps for the EIN Application
- What is the Need for the Tax ID (EIN) Number?
- Length of Time to Get the EIN
- Conclusion
1. Gathering of the Required and Mandatory Information
You need to start your journey to obtain a Tax ID (EIN) number by gathering up all of the required and mandatory information as an S-Corporation. The Internal Revenue Service will have this information as mandatory no matter how you go about doing the actual application. Whether you are applying via the phone, mail, or fax, you have to get the data together.
The first piece of information is about the actual owner of the business. To be sure the application process is as smooth as silk, you need to name someone as the business owner or responsible party to the Internal Revenue Service. When you do this, you need the personal information on the individual. The data needs include their address, phone number, as well as Social Security Number (SSN).
For the business itself you will need information such as the name of the business, the activities that the business embarks on, and the date the business formed.
2. The Online Application Process
The S-Corporation has some options when it comes to applying for and obtaining a Tax ID (EIN) number. The easiest and fastest option, though, is going to be following the online application process. As an S-Corporation, your Tax ID (EIN) number is important for you to do any type of normal business. You need it for employee tax forms, bank application documents, etc.
The online application process is extremely quick as you can simply use the online application form set up by the Internal Revenue Service. Having a Tax ID service professional help you with the form can also cut down on follow-up needs and correction requests by the IRS. All-in you can expect to be able to complete the online application form in less than 20 minutes and have a full result back to you within one hour.
3. Applying Over the Phone or through the Mail or Fax
You have three other options when it comes to obtaining your S-Corporation Tax ID (EIN) number. These include options such as applying over the telephone, through the mail, or with a fax machine.
The telephone application process is going to be the most unique in that it starts with an actual phone call to the Internal Revenue Service. If you reside in another country or have a business with a headquarters outside of the United States, the phone application method is a good starting point. You do this by calling the IRS and providing them with details. They will then request follow-up documents through the mail or fax.
The mail application method and fax application method are similar in that you will need a physical copy of the actual Internal Revenue Service application form for a Tax ID (EIN) number. Making sure the form is up to date is important as well. Once you have the form, work with a Tax ID service professional to fill everything in one line at a time. When complete, you will either then be putting it in the mail to the Internal Revenue Service, or sending it off via fax.
4. Quick Steps for the EIN Application
You may still be wondering how exactly you get a Tax ID (EIN) number for an S-Corporation. The answer to that question is all laid out in the paragraphs above. You need to start with your mandatory business information. From there, you should be working with a Tax ID service professional to proceed to one of the application methods and get everything fully submitted from start to finish. Remember, the online application process is easiest.
5. What is the Need for the Tax ID (EIN) Number?
The big need for the S-Corporation Tax ID (EIN) number all pertain to normal business operation. If you are in a situation where you are hiring employees, opening up a bank account, or even filing your taxes (which is always mandatory remember) you have to have your employer identification number. Any tax forms you may be working with, including sales and excise tax forms, all need the ID to select the appropriate income tax schedules and estimated tax forms, which will be unique to your S-Corporation status.
6. Length of Time to Get the EIN
How long will you be waiting to get your Tax ID (EIN) number? This is a common question as you usually need it as soon as possible.
The mail application process will typically require anywhere from four to six weeks for full processing and to get the complete EIN back to you.
The fax method is quicker, taking typically around five to seven business days in total. The IRS will fax you back the complete EIN.
The online application process is by far the fastest. You can complete the application in a matter of minutes and within one-hour have your EIN back.
7. Conclusion
Obtaining a Tax ID (EIN) number for your S-Corporation is something you want to hone in on early in the life of the business. As an organization, you are not doing your business justice without putting in your due diligence and getting that number in-hand timely. In the end, it is all about being able to do normal business operations and IRS compliance. The Tax ID (EIN) number enables both of those things.