What You Need To Know About the Employer Identification Number (EIN)

Photo of smiling woman behind laptop illustrates blog: "What You Need To Know About the Employer Identification Number (EIN)"

If you are a business owner, sole proprietor, or run a non-profit, you are required to have an Employer Identification Number. In today’s post, we tell you everything you need to know about EINs, from a basic definition to how to get yours online. 

What Is an EIN?

The term “EIN” stands for Employer Identification Number, and as the name suggests, this is a unique number assigned to employers by the IRS. 

EINs are useful because they help the IRS identify taxpayers who have to file certain business tax returns.

Some of the organizations that usually must have an EIN include:

  • Employers
  • Sole proprietors
  • Corporations
  • Non-profit associations
  • Partnerships 
  • Trusts
  • Estates
  • Government agencies
  • Other business entities

How Do I Request My EIN?

While the IRS accepts requests by fax or email, the internet is the most popular option to get your Employer Identification Number.

To apply for your EIN online, just visit this website and provide all the information the system requests.

Before you get started, it’s important to remember that:

  • You may apply online for an EIN if your main business is located in the United States or its territories.
  • The person applying online must have a valid tax identification number (ITIN, EIN, SSN).
  • There’s a limit of one EIN per responsible party (the person who exercises effective control over the business entity) per day. 

Make Sure to Keep Your EIN Information Up to Date

As with any other form of identification, it’s important to ensure that the information associated with your EIN is always up to date. 

The IRS asks holders of EINs to report any new information within 60 days of the change taking place. 

Most changes (like changing the name of your business, for example) do NOT result in you having to get a new EIN. However, if the structure or the ownership of the business changes, then you’ll probably have to request a new number.

Have Tax Questions? Contact JT Tax Services

Need help with your EIN? Want to learn more about the tax obligations of businesses? At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our wide array of tax services.