Did you realize that, as a non-profit organization, you are very likely to still need to get an employer identification number Tax ID (EIN)? Even as a tax-exempt non-profit organization, the need will still exist. You will require an employer identification number to do a lot more than just file taxes on an annual basis. To start the process of obtaining your Tax ID (EIN) number, you need to understand the required information necessary as well as the steps you will be following.
Steps to Applying for a Non-Profit Tax ID
- Gathering the Required Mandatory Non-Profit Business Information
- Understanding the Online Application Process
- Grasping the Mail, Fax, As Well As Telephone Application Methods
- Final Steps to Obtain the Non-Profit Tax ID (EIN) Number
- Processing Time for the EIN
- Why Does a Non-Profit Need a Tax ID (EIN) Number?
There is mandatory information you will need to get your hands on before you can go through with the application process for an employer identification number. Preparation of the mandatory business information will help you and your Tax ID (EIN) service professional go through the application process in a flash. As a non-profit organization, you need to gather up details on the organization itself. Declaration of some information such as the name of the non-profit, its mailing address, the date the non-profit formed, as well as detailing out exactly why you need an employer identification number are all pieces of the puzzle.
Once you get beyond the details specific to the non-profit, you then need to provide information about the owner or the registered agent of the organization. As a non-profit organization, you will usually choose a board member to go through with this process. It does not have to be a board member, but you will need to name someone as the registered agent.
The registered agent needs to be designated so that he or she can go through with the application process. If there is a need for a follow-up for more information or details that need to be provided to the Internal Revenue Service, the registered agent is the individual with the authority to do so. They will be the primary point of contact for the employer identification number and the Internal Revenue Service. To be a registered agent, you need a Social Security Number or Individual taxpayer Identification Number.
Do you have a good grasp of the online application process? As a non-profit organization, you want to pay attention to the online application process as it can save you a lot of time and stress dealing with the Internal Revenue Service. Applying for a non-profit Tax ID (EIN) number online can allow you to get the number within one hour in total. to apply for the Tax ID (EIN) online, you need to do a few things.
- You need to start by collecting up all of the mandatory and required business information for the non-profit organization.
- You need to get information about the registered agent. Again, this is usually a non-profit organization board member.
- You will then work with a Tax ID (EIN) service professional to send all of the information to the Internal Revenue Service for processing.
- Once you wait a few minutes, you will have your employer identification number in your e-mail.
When you get the employer identification number back electronically, you are good to go. You can use this number to do any of your normal business as a non-profit without any concern at all.
You have some other options to obtain your Tax ID (EIN) number and these include application methods such as the telephone, mail, as well as fax methods.
The biggest difference with the mail and fax application methods is that you need a physical copy of the latest application form released by the Internal Revenue Service. You need to print out the form in full and be sure you are filling it out with all of the proper information. Again, a Tax ID (EIN) service professional is your best bet to be sure you are doing the application properly.
If you are applying via the mail, you will put the application and any supporting details into an envelope and send it off via the United States Postal Service. You also have the option to use the fax method and send a fax to the Internal Revenue Service with all of the details.
You also can apply over the phone. This is like a starter application, as you provide just enough details to get the application going. All supporting documentation then needs to be sent via mail or fax to the Internal Revenue Service for full processing.
So now that you have an understanding of the information and the various methods you can apply, just how do you get your Tax ID (EIN) number?
- You start by gathering up all of the basic information on the non-profit organization. This will include all of the details we laid out in the mandatory and required business information section.
- You then need to choose how you will be going through with the application process. Will you apply online, via mail, or fax?
- You need to then work with a Tax ID (EIN) service professional to help apply.
- If the Internal Revenue Service requests additional details, provide them.
- Wait for the results to get your Tax ID (EIN) number.
Processing times will vary to get your Tax ID (EIN) number. The typical processing times will be about one hour when you apply via the online application, five to seven business days for fax, and up to six weeks for the mail application. The online application is by far the fastest method to go with.
A non-profit organization can require a Tax ID number for a variety of reasons. You may want to hire employees, open a Non-Profit bank account, obtain a permit or license, maybe even acquire a grant. If you want to do any of these types of transactions, you need an EIN to make it happen.
While a non-profit organization may be exempt from taxes, that does not mean it does not need a Tax ID (EIN) number. Obtain one as soon as possible so you can be sure you are in good standing with the IRS and able to do business per normal.