The Internal Revenue Service requires all nonprofit and business entities to obtain an EIN, which can be obtained through a relatively simple application process. Once an organization receives a nine-digit EIN, it can file taxes, declare business bankruptcy, claim certain tax breaks, and open a business bank account. The vast majority of commercial and private banks in the United States require business and nonprofit entities to have an EIN if they wish to open a business bank account. Some sole proprietors may not need to worry about having an EIN, but most companies with more than one employee will. It is possible to apply for EIN online and receive a confirmation instantly.
Why Do Companies Need Business Accounts?
It is imperative for businesses and nonprofits to keep close track of their revenue and expenses. If they do not, there can be huge implications when the time to file taxes arrives. Also, it can be a massive legal liability if a business owner fails to keep their personal income and expenses separate from those of their business. Simply put, opening a business bank account allows companies and individuals to maintain better financial records.
Applying for an EIN
It is fairly simple to obtain an EIN number for business purposes, and there are several application methods to choose from. To apply for an EIN with the IRS, individuals and companies can:
- Fill out an online application
- Call the IRS directly
- Complete and submit IRS Form SS-4 and send it by mail or fax
Once an application is approved, the applicant will receive a permanent EIN which can be sued to obtain a bank account. Unless the company or organization restructures or changes ownership, the EIN can be used indefinitely.
Get in Touch With a Professional
Gov Doc Filing understands your filing concerns, and it is no secret that filing for an EIN can be confusing if you’ve never done it before. Get in touch with a Gov Doc Filing professional today by completing and submitting this online contact form.
