If you own and operate your own business, you might be familiar with an Employer Identification Number, abbreviated as an EIN. This term is often used on several IRS business forms such as a Schedule C, a W-9, and other forms. Many small businesses don't need to have an EIN, but some do, depending on their industry and their staffing situation. How can you know if you need an employer identification number? If you need an EIN, how do you go about getting the IRS to issue you one.

What is an Employer Identification Number?

An Employer Identification Number is essentially a Social Security Number for a business. It serves to identify the company on government forms, especially federal and state income tax paperwork. The IRS allows any type of business to request an EIN, but it only requires certain kinds of companies to take the step of filing for a number.

How Can You Tell When You Need an Employer Identification Number?

Which companies does the IRS require to get an Employer Identification Number? This requirement applies to companies of any size that have employees, use Keogh plans, are partnerships or corporations, or are qualified non-profit organizations. Other types of companies must also apply for an EIN, including those who conduct tax withholding on payments to non-resident aliens and those who are required to file alcohol, tobacco, or firearms returns. Farming co-ops, certain real estate investment groups, and companies that are involved in estates must also get an EIN.

What's Involved in Getting an Employer Identification Number?

If your business falls under one of these categories, how can you request an Employer Identification Number from the IRS? The agency provides four methods for requesting an EIN: by mail, by fax, by Internet, or by phone. To request an EIN by mail, you can simply complete a paper copy of IRS Form SS-4 "Application for Employer Identification Number" and mail it to the address listed on the form. If you file by mail, you can expect your number in about four weeks.

To request an EIN by Internet, you can simply complete an online application on the IRS website Monday through Friday from 7 a.m. to 10 p.m. Eastern Time. You'll need to provide a valid Social Security Number or Individual Taxpayer Identification Number to complete the process. After your application is completed, you'll receive your new EIN right away. Filing by phone or by fax is simple. You can simply send your information to the correct fax number for your particular state of residence or provide your information over the phone by calling 800-829-4933.

Do you need an Employer Identification Number? If your business meets certain qualifications, you might be required to file for an EIN. The good news, though, is that the process of requesting an Employer Identification Number is very simple and straightforward, making it easy for you to get back to running your business.