As a C-Corporation, you must apply for a tax identification number or employer identification number (EIN). Tax ID number or taxpayer ID are other names commonly put into use to replace employer identification number (EIN), but they are all the same. The number gets used by the Internal Revenue Service (IRS) as a tool to identify businesses and link them to their tax obligations.
Whether you need an employer identification number (EIN) as a business will depend on a variety of factors. As a C-Corporation, though, an EIN is always going to be a need.
Steps to getting a C-Corporation Tax ID (EIN) Number
- Prepare Business Owner Information
- Apply for a C-Corporation Tax ID (EIN) Number Online
- Apply for a C-Corporation Tax ID (EIN) Number by Phone, Mail or Fax
- How Do I Get a Corporation Tax ID Number?
- How Do I Get a Tax ID Number for a Small Business?
- What is the Difference Between a Corporate ID Number and a Corporation Tax ID Number?
It all starts with eligibility when it comes to an employer identification number. You may apply for a C-Corporation employer identification number if your principal business has a location within the United States or within one of the territories of the United States. The individual or responsible party (see more on this below) also must have his or her own valid taxpayer identification number. Examples of these may be a social security number or other employer identification number.
To start the process of applying for a C-Corporation employer identification number (EIN), you need to figure out all appropriate business owner information. You need to name who is going to represent your business, be the lead contact. In the world of the Internal Revenue Service, the lead contact is the responsible party. The responsible party will be the individual with ownership or control over the entity itself, in this case, the C-Corporation. It is the person who can call the shots. The responsible party also must be an individual. Another entity or business cannot be the responsible party for a C-Corporation. The responsible party also must direct the application process, dispose of funds and assets when necessary.
The simplest way to apply for an employer identification number (EIN) is online, via the Internet. You can apply for an employer identification number online in a few minutes. Online is the method the Internal Revenue Service prefers most. All business entities with a principal or legal office or residence within the United States can apply for an employer identification number online.
3. Apply for a C-Corporation Tax ID ( EIN ) Number by Phone, Mail or Fax
In the event you do not want to go through the process of applying for a C-Corporation employer identification number (EIN) online, it’s the same process as applying for an S-Corporation EIN; but you can also do so for both business types via phone, mail, or fax.
If you want to apply for the number via the mail or fax, you need to get form Form SS-4. This is a form you can download via PDF. Once you have the form, you can begin to fill it out with all the appropriate information. If you wish to fax it, you will want to send it to the Internal Revenue Service. Typically, you will get return fax with your new employer identification number roughly four business days after the submission.
When you apply via snail mail, you also need to have Form SS-4 in a complete state. You want to locate the appropriate address for the Internal Revenue Service. Once you get a reply from the Internal Revenue Service, you can expect to have your number sent to you in the mail.
You may also apply for a C-Corp employer identification number using the telephone. There is an Internal Revenue Service phone line you can call Monday through Friday. International applications can make use of phone service as well.
If you want to get a C-Corporation employer identification number, you need to meet all requirements and follow through on all the steps we detail. The Internal Revenue Service wants to make it as easy as possible in obtaining one of these numbers. It helps them in tracking your income, figuring out how much you owe from a tax liability perspective, and making the most of their monitoring capabilities.
It all starts with the application process, which you can do via online, the mail, fax, as well as via the telephone. The goal is to make it as easy as possible. If you have a Social Security Number, you can get an employer identification number easily. If you are an international responsible party for a business, you will need to first get an individual taxpayer identification number or TIN. You do this with the Form W-7: IRS Application for Individual Taxpayer Identification Number. Once you have your TIN, it is then you can proceed to continue the application process for an employer identification number.
You can go it alone in terms of getting a tax ID number, or you can hire some assistance. It depends on your level of comfort with the process that exists to obtain the number. If you are unsure of how to approach the application process, it may be best to get professional help.
Getting a Tax ID number for your small business aims to be simplistic. The purpose of the number is for tax administration. It is not for participation in any other types of activities, including tax lien auctions, sales, lotteries, etc. Outside of the tax administration space, that is all you need to know.
You may have a Corporate ID Number, but this is very different from the tax ID number. The corporate number gets an assignment from the Secretary of State for every new entity. Once the Secretary of State does this tax, it is then that you can proceed as a C-Corporation to apply for a tax ID number. The Corporate ID number just identifies your company with a particular state. It is the Tax ID number that helps your company identify with the Internal Revenue Service.
The application process for a C-Corporation employer identification number is straightforward but may require professional help. Do your research and understand your needs, how you want to apply, and why it is important before you go down the path of obtaining an employer identification number.