An EIN is basically a number you need before you start with the day to day functioning of your enterprise. It is a number you need to use when you file your taxes. An EIN number application is a very long process so you have to do a lot of planning and go about it the right way.

You Social Security number are not going to work when it comes to filing taxes of your organization, unless your company is a one man show. You need an Employer Identification number and if you do not have one already, here’s how the Employer Identification application process works.
The EIN is a unique nine digit number that is assigned to every organization by the IRS (Internal Revenue Service) for the purposes of identification. When it is solely used for identification it is called the Tax Identification Number and when it is used to report employer taxes, it is called the Employer Identification Number.

Most sole proprietors do not need an EIN, however it makes sense for every company to have one, as it is beneficial to use this number for business as apposed to one’s social security number.
The process for EIN number application for your company is easy; all you have to do is file Form SS-4, with the Internal Revenue Service. These forms are easily available at Social Security offices and at the Internal Revenue Service offices. The application can be made via phone, fax or through an online application. The EIN number Application is free but the process is extremely long and could take anything up to 4 weeks till you get your Employer Identification Number.

If you belong to a state that charge their own rate of income tax, then your EIN number application needs to be for a State. The process is long, so you need to make sure that your application is applied in a planned fashion. Just in case you haven’t received an EIN, and it’s time to file your returns, you can simply tag ‘Applied for’ and file your taxes. Do not forget to put the date of the application in the space that asks for the identification number.