An EIN number is a personal service corporation tax ID number used to identify a business or corporation. The format of this number is distinguishable in written form as it appears 00-0000000. This is different from other federal numbers such as a social security number which is written 000-00-000. The EIN system was actually created by the IRS in 1974 to create a new system for tax payer identification for the purpose of employment taxes.
A business is required to have an EIN to be able to pay employees as well as file a tax return for the business. An EIN is also needed for a group to be considered LLC, a partnership, Corporation, non-profit, etc. In the past, the first two digits of the EIN number, known as the EIN prefix, would indicate where the business is located based on a geographic region. By 2001, the IRS decided to centralize the assignment of EIN numbers at three campuses of the IRS, but there are ten campuses on offer if necessary.
Specific codes are used within the first two numbers, the prefix, in order to show the assigned IRS campus. There are also codes in place to show internet businesses. Once an EIN number has been issued to a specific entity, it will not expire or be reissued.
Filing for an EIN
When starting a new business, filing for an EIN number is quite simple. Filing services are provided by such sites as irs-ein-tax-id.com, where you can fill out the form online with a quick turnaround time for your ID number. Within one day or even a few hours, you can have your tax ID number and be ready for operation. Chat features are offered at the site to make it easy for potential business owners to fill out the essential form for EIN. Simply talk to customer service with any questions you have in order to fill out the form properly and have your new number in no time.