How to Apply For ITIN and EIN?
How to Apply For ITIN and EIN?
After incorporating your company in the US, there are several other factors you have to consider. Looking at the bigger picture, things may look complicated, but they are not impossible. You can make things easier for yourself and your business by doing some homework and finding out as much as you can about operating a business in the US to avoid any problems in the long run. Getting an ITIN and EIN may prove quite a hassle at first, but by keeping the following factors in mind, you can simplify the process:
Obtaining an Individual Taxpayer Identification Number (ITIN)
In order for you or your dependents to benefit from your tax returns, you will need a Social Security Number or an Individual Taxpayer Identification number. If you do not have either of the two, your tax return request will not be entertained by the IRS. The only way you will be permitted to work in the US is if you have a Social Security number and in case you don’t, it is about time you apply for one.
However, if, for any reason at all, you are not able to get a Social Security number, you will have to obtain a Taxpayer Identification number instead. This can be accomplished by filling the W-7 form and submitting it with the required documents to the specified IRS office. But if you are outside the US, you will have to submit these documents to the US Consulate near you.
Getting an Employer Identification Number (EIN)
The Employer Identification number is quite similar to the Social Security number. It is a nine-digit number that is required by businesses for identification. Employer identification numbers are issued by the IRS and without one, businesses will not be able to file their tax returns. But it is important to keep in mind that the EIN is available for specific types of businesses, including:
- Limited Liability Companies
- Any and all businesses that hire employees, this can also include single-member LLCs and sole proprietorships
That being said, it is worth noting that an employer identification number becomes necessary for business owners after they form an LLC. In addition to being used for tax filings, the EIN comes in handy for:
- Establishing accounts with different vendors
- Opening business checking accounts
To acquire an employer identification number, a business must fill out the SS-4 form, which is available on the official IRS website. After filling the form and submitting the required documents to the IRS, an EIN will be issued to the business.
Keeping the aforementioned factors in mind, you know everything you need to about getting an ITIN and an EIN. By following the information provided above, you will be able to easily apply for the two and also get them without any hassle and also without incurring any additional costs. After all, both the ITIN and the EIN are requirements for a business in the US so you can’t get by without acquiring the two.
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