EIN for Individual

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EIN for individual is needed when you are assigning more employees into your business or want to file tax returns, apply for business loans. Well, before proceeding to the application for EIN as an individual, you must be aware of what exactly the EIN number is and how it works. Definitely, the given process for EIN is very easy for you to obtain for your business. But, it is also important to know that what the EIN number is and how it can benefit your business. Get EIN for individuals.

 

 
 

So, the EIN is the identifier that is basically for the businesses and it is assigned by the IRS authority. Not only this, but the Employer EIN can mitigate the issues and will let you get the approvals or the business loans as well as for making business-associated bank accounts.

This is the federal identification number that is with nine digits. Furthermore, if you also want to file for tax returns then you would need the employer number. Thus as being a sole proprietor, there is no need to file for the EIN number. Furthermore, in place of EIN, you can easily make use of SSN that is the social security number and it is basically for the entities without employees and those who are running alone. Therefore, get EIN for individuals as well to make use of it.

When EIN is mandatory for Sole Proprietors?

But there are a few cases when some proprietors will need the employer number. There are some additional reasons for what the sole proprietor needs EIN. Go through all the requirements when you would need the employer identification number.

  • Easily hire employees using your EIN
  • Moreover, when you want to have a Keogh or Solo 401(k) retirement plan, EIN is required
  • In case of changing the business entity ad making a new business, need EIN.
  • When want to incorporate your business
  • Even when making an LLC company
  • Also, need an Employer number for filing the bankruptcy

 Why you should have EIN If It's Not Required?

In case, if you don't have EIN and you don't require it, there are some other valid reasons for which you will have to acquire it. Even you can use the SSN number for the purpose of business requirement as showing it the tax id. But there are mentioned two important reasons for which you should have the EIN number in place of the social security number.

1. It Avoids identity theft-

The theft of identity has become a massive issue and there are the identity thieves who are doing this thing of breaching the rules and working against the terms. Along with this, thieves use the SSN numbers as well to do frauds and they can easily file for fraudulent tax returns. Henceforth, by doing all this, they easily get tax returns. Therefore, keep your SSN number safe and secure.

2. Help Establish Independent Contractor Status

When you are filing for the tax returns, at that time the business history will literally tell the status of your credibility that you are an independent businessman. When you keep the same dignity in your business position, you can easily attract more clients.

How to Obtain an EIN

It is easy to obtain the EIN number by filling in the SS4 form online by visiting the IRS website. In addition to this, applying the EIN number is totally free of cost. There are no charges imposed by IRS. If you don't want to apply online, you may also apply it by calling or fax. As well as there is another way to get the EIN number by mail.

Firstly, download the SS4 form from the official website of IRS. Furthermore, fill it and send the details by mail or fax to apply for EIN. Ultimately, you may also have the employer identification number for your business by calling to IRS between 7 to 10 pm. 

 

 
 
 

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