When you take the decision to start your corporation in the United States, one of the first things you need to do after that is to get an Employer Identification Number (EIN). This special nine-digit, assigned by the Internal Revenue Service (IRS), is a must-have for going through many important business activities such as opening a bank account, hiring workers and filing tax returns. Allocating enough time for getting EIN number in advance remains an important factor in your business setup and executing operations smoothly. This write-up is tailored towards explaining the steps involved, as well as providing tips on how you can obtain your Employer Identification Number (EIN) as soon as your company is incorporated in the USA.
The EIN Application Process
Obtaining the EIN number is not a hard process at all. The IRS provides several methods for applying: online, by fax, by mail, and, if necessary, even by telephone as rare exceptions. The most suitable and the recommended approach are online submitting through IRS website which is accessible both by the local and international applicants. While the way of applying might make a difference in the time of getting EIN, the exact amount of time is not specified in most applications.
Online Application: The Quickest Route
To almost all of the new businesses which are planning to do the incorporate company in USA and who want to apply for an EIN, the online application is the easiest and the fastest option. The application process effectively is online and you are able to get EIN immediately and few hours after you are done with the application. Generally, the EIN is issued at the end of the session and as a rule, it’s handed over to the business owner when he or she is finishing the process of founding an enterprise. Besides, that is true for consultations that are hosted on the IRS website on Monday to Friday in hours specified by IRS itself.
Fax Application: A Matter of Days
Expect to go through the process with it a bit longer if you opt to use fax. Once you fill out IRS’s forms properly, fax them. Generally, IRS processes faxed applications within four working days, and they send out the EIN to the fax number you have provided on your application. This technique is an eligible substitute only when you fail to implement online application.
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Mail Application: The Longest Wait
Mailing in an application for EIN is of course, the slowest way to do it. It usually takes between four to six weeks to receive your Employer Identification Number once you have mailed the completed forms to the Internal Revenue Service. This approach, despite its long processing time, is less preferred, but it is a viable means of an individual who cannot or does not wish to apply using the online or fax system.
Telephone Application: For International Applicants
For college students who are international applicants and who need apply for EIN and can’t use online application system, they are provided with telephone application option. This is such a way that you can get an EIN instantaneously over the phone. Though, you should know that at times you will have to stay on hold for some time and may be confronted with waiting time whenever you call.
Factors That Can Affect the Timeline
However, the IRS has general time frames under which the EINs (Employed Identification Number) are issued, but these factors can determine how long it will take to acquire an EIN. An unsuitable or partially done application creates the barriers of delay. Apart from this, high volumes of demands or IRS system upgrades may increase the waiting time for all the methods of obtaining a refund.
Conclusion
The timeline for becoming eligible for your business EIN number varies based on the processes for the application. By being a go-to option through its online application, it has a reputation as the fastest way to obtain an EIN number, which is vital when you want to incorporate your company in USA. Regardless of the method you choose, make sure that you allocate (plan ahead) enough time for the processing and consider this in your business setup plan (timeline) to make your business beginning in the American market better.