U.S. Employer Identification Number Application Procedures and Fees
U.S. Employer Identification Number Application Procedures and Fees
Our service fee for handling the EIN application is USD300. The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number (FTIN), is a unique nine-digit number (for example, 12-3456789) assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. EIN just like a Social Security Number (SSN) for your personal identification number. The EIN number allows you to communicate with the Internal Revenue Service (IRS) in the dealing of all the tax matters of your company. You may also need EIN for bank account opening, business license application or other reasons.
The EIN is issued by the Internal Revenue Service (IRS) upon application. You can apply for EIN via website, fax or mail. Expedited service is not available. To complete the application, you should prepare the Form SS-4 and submit it with your company’s registration document to IRS. Kaizen will notify you through Email upon receipt of the EIN from the tax authority.
EIN does not expire. Once an EIN has been issued to an entity, it will be permanent federal taxpayer identification number for that entity. IRS cannot cancel your EIN, unless you require to close the EIN account.
This article will focus the application procedures and fees to apply the EIN for your reference.
- S. EIN Application Services and Fees
Our fees for handling the EIN application is USD300. In particular, our fee covers the following services:
(1) Answer your questions regarding the EIN application;
(2) Kaizen will certify the passport copy and company’s registration documents you provided;
(3) Prepare and send the application documents to you for the signature;
(4) Kaizen will review the signed application documents;
(5) Submit all the application documents and company’s registration documents to IRS to apply EIN.
Notes:
(1) Our fee quoted above does not cover courier charge;
(2) Our fee quoted above excludes the taxes. If tax invoice is needed, value-added tax at the prevailing rate may be charged and collected.
- Uses of an EIN
According to the IRS, your business requires an EIN under any of the following circumstances:
(1) You have employees.
(2) Your business is taxed as a corporation, partnership or limited liability company. The owner of the single-member LLC may not need to obtain an EIN unless the business has one or more employees or has an excise tax liability. It should use the name and Taxpayer Identification Number (e.g. SSN) of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC should apply for and obtain an EIN.
(3) You need to file employment taxes, excise taxes, or alcohol, tobacco, or firearm tax returns.
(4) You withhold taxes on income paid to a non-resident alien.
(5) Your business has a Keogh plan.
(6) Your business is involved with trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers’ cooperatives or plan administrators.
Even if your business doesn’t fall into any of the above categories, you may still be required to get an EIN if you want to open a business bank account, apply for business licenses or apply for a loan from a bank or financial institutions.
Please note that businesses may need a new EIN when their ownership or structure has changed.
- Procedures and Timeframe to Apply an EIN
All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN unless you are a foreigner) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.
(1) Apply Online
If the entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories and you, as the responsible party, have a valid U.S. Taxpayer Identification Number (SSN, ITIN, EIN), you can use IRS online system and submit your application online. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately.
(2) Apply by Fax or Mail
If you, as the responsible party, are foreigner or the entities whose principal business, office or agency, or legal residence (in the case of an individual), is located out of the United States or U.S. Territories, you can apply EINs by fax or mail. You could fax the completed Form SS-4 application to the appropriate fax number, after ensuring that the Form SS-4 contains all the required information. If it is determined that the entity needs an EIN, one will be assigned an EIN within 3 weeks. If you choose to apply for an EIN by mail. The processing timeframe is 4 to 5 weeks.
The application procedures for EIN are listed as follows:
| No. | Description | Time
(Business Days) |
| 1 | Kaizen was entrusted to handle the EIN application; you should prepare documents (listed in Part 5), then E-mail the whole package to Kaizen. Meanwhile, Kaizen service fees should be paid at this point; | Client schedule |
| 2 | Kaizen will certify the passport copy, U.S. Taxpayer Identification Number (if appliable) registration document and registered address you provided; | 1 |
| 3 | Kaizen will prepare the application documents, including the Form SS-4, and signature instructions; | 1 |
| 4 | Kaizen will send the application documents (mentioned in 3) to you to review and confirm the accuracy; | 1 |
| 5 | After confirmed, please sign those according the signature instructions and email back the signed application document for Kaizen review; | Client schedule |
| 6 | After review, Kaizen will submit all documents to IRS. An EIN will be issued, if approved; | 1
(apply online) 10-15 (apply via fax) 20-25 (apply via mail) |
| 7 | Kaizen will notify you through Email once received the EIN | 1 |
Note:
(1) The number of days stated above are estimated and for reference only. In addition, they are estimated based on the assumption that all documents are provided as required.
- Payment Time and Method
We currently accept Hong Kong Dollar check, cash or TT and credit card through PayPal only. If payment is settled through PayPal, extra 5% services fee will be charged. Upon receipt of your order, we will issue an invoice to you for your settlement. Because of the nature of services, we require full payment in advance. Also, once service is commenced, no service fee will be refunded except special cases.
- Documents Required to Obtain the EIN
For the purpose of applying the EIN with IRS, the following materials should be prepared and provided:
(1) The company’s registration document (for example, certificate of formation) and registered address;
(2) Passport copy of the responsible person of the company;
(3) Responsible party’s U.S. Taxpayer Identification Number (SSN, ITIN, or EIN), if apply online;
(4) Signed application form SS-4, if apply by fax or mail.
The documents mentioned above, should be certified or notarized by Kaizen, local notary at the place of the shareholder and manager, lawyer, CPA, or bank manager.
- Documents for You After the Registration
If you qualify for an EIN and your application is complete, you will receive an EIN immediately (if apply online), within 3 weeks (if apply via fax) or 4-5 weeks (if apply via mail). Please note that the processing time will be longer during pear tax time (January 15 through April 30). Expedited service is not available. Kaizen will notify you through Email once received the EIN from the tax authority.