Menu
HARIK THOMPSON CPAs
  • About
    • Merger Announcement
    • Team
      • Patricia Harik
      • Kevin Thompson
    • Affiliation
  • Services
    • Accounting Services
    • Financial Planning
    • Business Consulting
    • Tax Strategies
  • Resources
  • Payments
  • News & Updates
  • Contact
  • About
    • Merger Announcement
    • Team
      • Patricia Harik
      • Kevin Thompson
    • Affiliation
  • Services
    • Accounting Services
    • Financial Planning
    • Business Consulting
    • Tax Strategies
  • Resources
  • Payments
  • News & Updates
  • Contact

What to Know About Employer ID Numbers

7/17/2019

 
In general, businesses need an EIN. There are various ways to apply for one, but the IRS is happy to let you know that you may now apply online. It's a free service.
You are urged to check your state to discover whether you need a state number or charter. The online federal EIN application is in a question-and-answer format, with embedded help topics and hyperlinked keywords and definitions. 

Once all validations are done, you'll get your EIN immediately. You can download, save and print your confirmation notice — a fast, free and user-friendly way to get your EIN.

But let's take a step back. It's best to be sure your organization is formed legally before you apply for an EIN. When you apply for an EIN, it is presumed that you're legally formed. The clock starts running on the three-year period.

If you're a sole proprietor, you will need a new EIN when there's a change of ownership or structure, but not for a name change, a change in location or if you add other locations, or if you operate multiple businesses. You're required to obtain a new EIN as a sole proprietor if:
  • You're subject to a bankruptcy proceeding.
  • You incorporate.
  • You take in partners or operate as a partnership.
  • You purchase or inherit an existing business that you operate as a sole proprietorship.

If you incorporate, you'll need to obtain a new EIN if:
  • Your corporation receives a new charter from the secretary of state.
  • You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
  • You change to a partnership or a sole proprietorship.
  • A new corporation is created after a statutory merger.

You won't need a new EIN as a corporation if:
  • You're a division of a corporation.
  • The surviving corporation uses the existing EIN after a corporate merger.
  • Your corporation declares bankruptcy.
  • Your corporate name or location changes.
  • You choose to be taxed as an S corporation.
  • Reorganization of your corporation changes only the identity or place.
  • Conversion occurs at a state level, but your business structure remains unchanged.

If your company is a partnership, you'll need a new EIN if:
  • You incorporate.
  • Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
  • You end an old partnership and begin a new one.

You won't need a new EIN as a partnership if:
  • Your partnership declares bankruptcy.
  • The partnership name changes.
  • You change the location of the partnership or add locations.
  • A new partnership is formed as a result of the termination of a partnership under IRC Section 708(b)(1)(B).
  • Fifty percent or more of the ownership of the partnership (measured by interests in capital and profits) changes hands within a 12-month period (terminated partnerships under Reg. 301.6109-1).

And if you've lost or misplaced your EIN and want to verify it, you can visit the online EIN site for instructions. The IRS is limiting EIN issuance to one per responsible party per day. The responsible party is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets.
​

When you apply for an EIN with the IRS assistance tool, your nine-digit federal tax ID becomes available immediately upon verification.

Comments are closed.

    Newsletter articles are posted every 2 weeks. ​

    If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.

    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017

    Categories

    All
    1099 Form
    2021 Adjustments
    401Ks And IRAs
    529 College Savings Plans
    941 Form
    ACA Affordable Care
    Accounts Receivables
    ADA - Americans With Disabilities Act
    Americans With Disabilities
    Annuities
    Audits
    Back Pay
    Bankruptcy
    Basis
    Benefit Transfers
    Blockchain
    Bonuses
    Box 1
    Budgeting
    Business Deductions
    Business Interest Expense
    Business Interruption Insurance
    Business Structure
    Business Tips
    Capital Gains
    CARES Act
    Cash Flow
    Charitable Gifts
    Communication
    Compensation
    Coronavirus
    Coronavirus Relief Package
    Credit Cards
    Credit Score
    Crowdfunding
    Death And Debt
    Debt
    Deductions
    Depreciation
    Disaster Relief Payments
    Disaster Tax Break
    Diversity Training
    Divorce
    D&O Insurance
    Down Payment
    Dress For Success
    Earned Income Tax Credit
    Education Credits
    EIN Employee ID Numbers
    Elder Mediation
    Employee Direct Deposit
    Employee Leave
    Employee Overpayment
    Employee Ownership
    Employees Cross State Lines
    Employment Taxes
    Entertainers
    ESOP
    Estate Planning
    Estate Taxes
    Estimated Taxes
    Executor
    Expenses And Depreciation
    Expensing Rules
    Family Businesses
    Family Leave
    Fiduciary
    Filial (Adult Child) Responsibilities
    Filing Status Options
    Financial
    Financial Advisor
    Financial Planning
    Flood Insurance
    Floods
    Franchise Ownership
    Fraud
    Freelancing
    Furloughs
    Headcount Reporting
    Health Care
    Health Savings Account
    Hiring Compliance
    Hiring Help
    Hiring Tax Credits
    Hoaxes
    Hobby Vs. Business
    Home Equity Loans
    Home Office Deduction
    Homeowners
    HSA
    Hurricanes
    IC-DISC
    Identity Theft
    Income Tax
    Information Return
    Inherited Mortgage
    Insurance
    Investing
    Investors For Your Business
    IRAs
    IRS CP2000
    IRS Disagreements
    IRS Identity Protection PIN
    IRS Rights
    Joint Tenancy
    Key Performance Indicators
    Kiddie Tax
    Layoffs
    Lease Accounting
    Leave
    Life Insurance Trusts
    Loans
    Long Term Care Insurance
    Long-Term Care Insurance
    Managing Employees
    Marriage Penalty
    Maternity And Paternity Leave
    Medicaid Trust
    Medical And Dental Deductions
    Medicare
    Mergers
    Mileage Rates
    Morale
    Mortgages
    Multistate Taxes
    Myers-Briggs Personality Types
    Net Investment Tax
    New
    Newsletters
    New Tax Law
    Noncompete Agreements
    Operating Loss
    Opportunity Zones
    Organize Your Finances
    OSHA
    Outsourced Accounting
    Overtime Exemption
    Padding
    Pandemic Planning
    Papers For Taxes
    Part-time Help Tax Rules
    Passwords
    Payable On Death Accounts
    Paycheck Protection Program
    Payday Changes
    Payday Frequency
    Payroll Cards
    Payroll Scams
    Payroll Taxes
    Pensions
    Personal Finances
    Power Of Attorney
    PPP Loan
    Private Tax Debt Collection
    Property Taxes
    Protecting Wealth
    QSEHRA Benefits
    R & D Tax Credit
    Real Estate 1031 Exchange
    Real Estate Held In IRA
    Real Estate Investment Trusts
    Reciprocal Agreements
    Records
    Remote Employees
    Reporting
    Retirement
    Revenue Recognition
    Reverse Mortgage
    Sales Tax
    SBA Loans
    Schedule C
    Self Employment Taxes
    Severance Pay
    Severence Pay
    Sexual Harassment
    Sharing Economy Tax Implications
    Sick Leave Rules
    Small Business Administration
    Social Media
    Social Security
    Spendthrift Trust
    State And Local Taxes
    Student Loans
    Success
    Succession Plan
    Supplemental Wages
    Tariffs
    Tax Brackets
    Tax Breaks
    Tax Changes
    Tax Debt Collection
    Tax Deductions
    Tax Forms
    Tax-Loss Harvesting
    Taxpayer First Act
    Tax Planning
    Tax Preparation
    Tax Reform
    Tax Refunds
    Tax Scams
    Trump's Tax Law
    Unemployment Tax
    W-2 Form
    W 4 Form
    W-4 Form
    W-4 Requests
    Wage Garnishments
    Wages And Overtime
    Wills And Trusts
    Withholdings

    RSS Feed

Proudly powered by Weebly