Are you an employer who has hired employees for their business? If yes, then you require an EIN. An important fact: even if you have only one employee, you must have an EIN when running a business. And to obtain an EIN, you must file Form SS-4.

An EIN works similarly to a social security number for your business. The IRS can quickly identify your business when you pay certain taxes through this nine-digit number. That’s why, to apply for this number, you have to file EIN Form SS-4. In this article, you will understand what Form SS-4 is. You will find SS-4 instructions for applying for an EIN and how to do so.

Let’s go ahead!

What Is IRS Form SS-4?

IRS Form SS-4 is the form you must file with the Internal Revenue Service to apply for an Employer Identification Number (EIN). Businesses, non-profit organizations, trusts, estates, and other entities use it to apply for a distinctive nine-digit number from the IRS.

The EIN functions as a tax identification number for the applied entity and is needed for various purposes, including filing tax returns, opening a bank account, hiring employees, and other business-related operations.

On this Form SS-4, you must provide information about your business, including your company's legal name, address, type of business structure, and the reason for applying for an EIN.

What Is an Employer Identification Number?

An EIN is a Federal Tax ID number that most businesses in the United States require when forming a business, whether residents or non-residents. Simply put, an EIN (Employer Identification Number) is a nine-digit number that the IRS (Internal Revenue Service) issues to identify a specific business entity.

It identifies a business entity and is used for tax purposes in the United States. Each EIN is different, so the IRS can quickly identify a business entity. EINs are usually given to businesses like corporations, partnerships, LLCs, and sole proprietorships, but they can also be given to trusts, estates, and non-profit organizations. An excellent way to protect one's identity is to use an EIN instead of the business owner's Social Security Number.

What Is an Individual Taxpayer Identification Number (ITIN)?

An Individual Taxpayer Identification Number is a unique number used as a tracking number by the IRS to identify businesses, individuals, and other entities for tax-related purposes. The IRS  issues all U.S. tax ID numbers except for social security numbers. When you want to apply for employment or credit, ITINs are also required. There are different types of tax identification numbers, such as the employer identification number, the individual tax identification number, and the adoption tax identification number.

Why Do You Need EIN Form SS-4?

Before filing Form SS-4, you must know certain conditions determining whether you need an EIN number. Here are some of the reasons you might need an SS-4.

1. Employer Identification Number: The main reason for filling out an SS-4 form is to obtain an EIN. An EIN is a unique nine-digit number assigned by the IRS. It is also called a federal tax identification number.

2. Business Entity Formation: When forming a business as a sole proprietorship, partnership, corporation, limited liability company (LLC), or any other entity, you need an EIN number for tax and other legal purposes.

3. Hiring Employees: If you plan to hire employees for your company, you must have an EIN number for payroll tax reporting and withholding purposes.

4. Opening Business Bank Accounts: To open a business bank account at most banks, you need an EIN.

5. Filing Tax Returns: An EIN is used to identify your business entity when filing different tax returns, like income tax, employment tax, excise tax, and more.

What Information Do You Need for Form SS-4

To file Form SS-4, you will need the following information and documents:

• The official and legal business name and physical address.

• If your company will operate under a name other than its legal name, you must file a trade name, also known as a DBA.

• The name of the applicant and their ITIN, SSN, or EIN.

• Type of business structure.

• Mailing and street addresses of the business.

• Country and state where the principal place of business is located.

• Responsible party information- generally, it may be the owner, a general partner, or a principal officer.

• Indicate the primary reason for applying for an EIN.

• Date of your business began or acquired.

• Principal product or service of the business.

FAQ

1. How do you get Form SS-4 from the IRS?

Answer: To obtain Form SS-4 from the IRS, go to their website and search for "Form SS-4." You can also call the IRS at their toll-free number and request that the form be mailed to you.

2. If You're a Sole Proprietor, Do You Require an EIN?

Answer: When you want to operate a business as a sole proprietor, obtaining an EIN number can be beneficial as it separates your business and personal finances, especially if you plan to hire employees or open a business bank account. But if you do not have any employees, you can use your social security number for tax purposes.

3. Are EINs the same as Social Security Numbers (SSNs)?

Answer: Employer Identification Number (EIN) and Social Security Number (SSN) are not interchangeable. While an individual's SSN is utilized for personal and financial reasons, corporations and organizations use EINs for tax and legal purposes.

Bottom Line

Obtaining an Employer Identification Number (EIN) through EIN Form SS-4 is a vital requirement for all businesses, regardless of size. Like a social security number, an EIN acts as a unique identification that allows the IRS to track taxes and corporate operations.

An EIN is necessary for various purposes, including business incorporation, hiring employees, opening bank accounts, and filing tax returns. The form requires information about your company, facts about the responsible party, and the reason for the application.