The administration behind starting a business can be a headache for all new business owners. Corporate law administration can be challenging and owners can be tempted not to give it the necessary importance, but it is essential that all the legal administration be done correctly for your business to keep its doors open. Once you have registered your business you have to apply for an Employee Identification Number (EIN), also known as a Federal ID number. This is a nine-digit code not only allows the Internal Revenue Service to identify your business, but without a valid Federal ID number you will not be able to open a corporate bank account or complete other tax related affairs of your business. Here we discuss corporate law and the Federal ID Number application process.
Federal ID Numbers And Your Business Structure
There are many business structures available for new business owners to choose from. These include Corporations; Sole Proprietorship; General Partnerships and Limited Liability Companies (LLC). LLC’s are among the most common business structures as they allow for a number of benefits. LLC’s limit ownership liability and allow for the development of a business structure unique to a company’s specific needs. The business structure you choose can influence your business’ registration process, compliancy requirements and your internal organizational structure.
How To Obtain A Federal ID Number
To obtain a Federal ID Number, you will have to apply for one from the Internal Revenue Service. This can be done online or in person. The way you apply can influence your application procedure and the documents required for a successful application. Here are some of the ways to apply:
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Applying Online
All businesses that function primarily or who’s legal residence is in the United States or within U.S. Territories can make use of the online application procedure. The internet EIN application is widely used and preferred by customers as the application can be validated during one session and an EIN can be provided immediately. To apply, your business owner must have one of the three recognized Taxpayer Identification means. A Social Security Number will be sufficient to make use of the online application.
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Applying By Fax
To apply for your Federal ID number for your corporation, you will have to download and complete a SS-4 form. Once completed, this form will reflect all the information about your company required for registration. The completed form is to be saved in PDF format and should be faxed to the provided fax number. If completed correctly, your EIN will be faxed to the fax number you have provided in your application, within four business days.
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Applying By Mail
Applications by mail are the slowest application procedure as it takes up to four weeks for the successful processing of your Federal ID Number application. Applicants are to download the SS-4 form, complete it and mail it to the provided address. If successful, the corporation’s EIN will be mailed to the provided address.
Who Should Apply On Behalf Of Your Company?
The IRS limits the number of parties responsible for Federal ID Number application to one person per day. This means that it is in your best interest to assign one person to handle your corporation’s EIN registration. The process can be complex and requires knowledge of corporate law. It is best to contact an experienced professional to ensure that your registration happens efficiently and correctly. At Gary I. Handin, P.A., we have years of experience in corporate law, making us the ideal candidates to apply on behalf of your company.
Contact Gary I. Handin, P.A., today for all your corporate law needs.