Obtaining an EIN
If you create a corporate entity regardless of whether it is a for-profit or not-for-profit, you will likely need to obtain an Employer Identification Number (EIN). An EIN may be necessary for tax purposes. Obtaining an EIN is a quick and easy process once the entity is formed, although it is a bit trickier if you have already obtained an individual EIN prior to forming a corporate entity. While getting an EIN is simple, the larger process of registering your corporate entity can be quite complex. This is why many people hire a law firm to assist them.
Keep reading to learn more about getting an EIN.
What is an EIN?
An EIN is a unique number used by the IRS to distinguish your corporate entity from every other entity known to the agency. These numbers are only used by the IRS for tax administration purposes. However, other organizations may use your EIN. For example, a bank may ask you to submit your organization’s EIN if you are applying for a loan.
Georgia law does not cover obtaining an EIN because that process is regulated by the IRS, a federal entity.
What If I Already Have an Individual EIN?
Normally, you can obtain an EIN for your organization very easily through the IRS website. However, there is one exception to this. If the person filing for the organization’s EIN has already obtained an EIN individually (e.g. for a sole proprietorship), they will not be able to get the organization’s EIN online. Thankfully, the IRS offers individuals in this situation other ways to obtain their organization’s EIN.
The other methods for obtaining an EIN include submitting Form SS-4 by fax or by mail. It is far quicker to get an EIN through fax than through the mail, as the IRS will send you the EIN within four business days as long as you qualify and you have included your fax number. Getting an EIN through the mail will take roughly a month.
Steps for Obtaining an EIN
The first thing that you must do when obtaining an EIN for your organization is determine whether your organization is eligible. The business must be located within the United States.
You also have to determine the eligibility of the responsible party (the person applying for the EIN). You must have a valid Taxpayer Identification Number (TIN). This is most commonly a Social Security Number. Also, you can only obtain one EIN per day.
Complete The Online Application
The next step in the process (provided that you don’t have an individual EIN) is to complete the application on the IRS site. For security reasons, you must complete the application in one session. This won’t be a problem for most people, as the entire application can be completed in two minutes or less. Your session will end automatically after 15 minutes of inactivity.
Obtain Your EIN
The IRS will run a number of automated validation checks before issuing your EIN. These checks should only take a moment. After checks have been completed, your EIN will be displayed. It is surprisingly hard to obtain another copy of the EIN letter. So it’s a good idea to print the screen to ensure that you have your EIN saved. You may want to save both a digital copy and a hard copy.
Obtaining an EIN for a Nonprofit
There are a few things that you should keep in mind when you are obtaining an EIN for a nonprofit organization. First, you must have legally formed your organization before obtaining your EIN. This means that you must have filed articles of incorporation with the state of Georgia.
If you would like assistance with setting up your for profit or nonprofit organization in Georgia, the law firm of DeLong, Caldwell, Bridgers, Fitzpatrick, & Benjamin is here for you. We have helped many people form a variety of corporate entities in Georgia (both for profit and nonprofit). Our highly experienced staff can guide you through the process to help you get your entity formed as quickly as possible. You can also trust us to follow all applicable laws and regulations when setting up your organization. Contact us today to learn more about how we can help you set up your organization.