How to Register for an EIN in Illinois –

One of several steps most businesses will need when starting a business in Illinois is to register for an Employer Identification Number ( EIN ) and state of matter business tax ID number. These numbers are most normally used to register a business with the federal and state government in rate to pay sales taxes, payroll taxes, and withhold taxes from employee wages .
Let ’ s review in more detail what this issue is used for when it is required, the cost, and how to register .
Also See: Guide to Starting a Business in Illinois

What is the Employer Identification Number (EIN)?

EIN is inadequate for Employer Identification Number and is sometimes referred to as a Federal Employer Identification Number, FEIN, Federal Tax Identification Number, or Federal Tax ID Number. This is a unique nine-digit numeral that is exchangeable to a social security number for an individual but alternatively identifies a clientele.

The EIN is chiefly needed to hire employees, as the EIN is used as the bill for paying payroll taxes, income tax withholdings, and unemployment taxes .
Some early uses of the EIN admit :

  • Opening a bank account – Banks need an EIN (or SSN if the EIN isn’t needed) before opening a business bank account.
  • Applying for business licenses & permits – Most Illinois business licenses and permits will require the EIN (or SSN in some cases) before registering the business.
  • Filing tax returns – To file taxes at the state and federal level, the EIN is used to identify the business.

Who needs an EIN?

The EIN is needed for Illinois businesses that are either :

  • Registered as a partnership, corporation, or multi-member Limited Liability Company, or;
  • A sole proprietorship or single-member LLC that has employees

The EIN is optional for sole proprietorships and single-member LLCs without employees. Those business entities will use the owner ’ s social security number ( SSN ) or Individual Taxpayer Identification Number ( ITIN ). While it ’ randomness not required, using an EIN in locate of the owner ’ s SSN can help protect the owner from identity larceny .
Related: How to register for an EIN without an SSN

How to apply for an EIN

The easiest and fastest means to apply for an EIN is to visit the Internal Revenue Service ( IRS ) web site, between the hours of 7 am – 10 promethium EST, Monday – Friday .
The on-line application process only takes about 5 minutes to file the EIN on-line, and the count will be cook in seconds. If apply on-line international relations and security network ’ t an option, you can besides complete an EIN application by mail or facsimile by sending Form SS-4 to the IRS facsimile number 855-641-6935 .
You can even get an EIN over the telephone if the company was formed outside the U.S. by calling 267-941-1099. If filing by call, note that it isn ’ t a toll-free count.

There is no cost to apply for an EIN .
See how to register for an EIN in this video:

If you prefer to have some guidance in applying for an EIN, companies like If you prefer to have some guidance in applying for an EIN, companies like LegalZoom can promptly take concern of the registration.  

What Information Do I Need to Get an Employer Identification Number?

Applying for an EIN is pretty square, but you will need to obtain some information ahead, such as :

  • Legal name of the business
  • Business address
  • Name(s) of the principal officer, manager, or owner
  • Name(s) and contact information of the owners, directors, officers, or members
  • Type of business and what activities the business performs
  • Date the business was started or acquired
  • Closing month of the entity’s accounting year
  • Number of employees expected to be hired
  • Contact information

Within seconds, the IRS will provide the EIN that can be used immediately. A few weeks later, the IRS will send the official paperwork, known as an EIN Confirmation Letter ( CP 575 ) .

Is an EIN the same as a tax ID number?

In accession to registering the EIN, many businesses will besides need to get an Illinois tax phone number in order to pay for a variety of state business taxes .
clientele tax numbers in Illinois are often confused with the EIN. The EIN is a separate issue that is used to federally register a business with the Internal Revenue Service ( IRS ) and may be needed in accession to the submit tax count. A clientele may need to apply for one or both numbers .
The most common reasons a business in Illinois will need to register for a commercial enterprise tax ID include :

  • Sales Tax – Businesses selling products and certain services are required to collect sales taxes and will need to register with the Illinois Department of Revenue. Learn more about registering for an Illinois sales tax number.
  • Employees – Businesses with employees will need to register with the Illinois Department of Employment Security to pay for payroll taxes.  Learn more about registering as an employer in Illinois.

How much does it cost to get an EIN in Illinois?

There is no cost for an EIN when you apply directly through the Internal Revenue Service .

Should I get an EIN or LLC first?

Be certain to register your LLC or Corporation before registering for an EIN. You should wait until the name of the entity is confirmed with the Illinois Secretary of State before registering the EIN .
Related: How to register for an LLC in Illinois

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Category : Finance

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