If you are starting a business, then you must have heard about the Employer Identification Number (EIN). You will need an EIN to open up a bank account or to pay taxes as a sole proprietor. Also, this number is often required when applying for a business loan or grant. The purpose of this article is to help you understand how you verify your EIN number and how can you get a copy of an EIN letter from the IRS by completing Form SS-4.
What is an EIN?
The EIN (Employer Identification Number) is a unique nine-digit number that the IRS assigns to businesses. This number is used by businesses when applying for a tax identification number, applying for a loan, or applying for any type of business license.
For example, if your business plans on opening a restaurant in Delaware and you want to file taxes as an LLC, you’ll need an EIN so that the IRS can recognize your business.
Why Do You Need an EIN?
You may need an EIN for any number of reasons. Maybe you want to open a business bank account, apply for a business credit card, or start borrowing money. You may also have the desire to apply for licenses and permit from your state or city government. Or perhaps you’re looking to maximize tax deductions by using your business as a loss leader (more on this later).
In general, having an EIN Number makes it easy for people like accountants and attorneys who work with businesses to deal with them in an organized fashion. This system also allows the IRS easier access should they ever need it because all financial transactions are tied back through this single identification number.
What is EIN Confirmation Letter?
An EIN confirmation letter is a letter from the IRS to a business, confirming that it has been assigned an EIN. The confirmation letter is also referred to as an Employer Identification Number (EIN) confirmation form and letter.
The letter is sent to your bank and/or other financial institutions in order to verify that the company is indeed a legitimate business with a valid EIN number.
How to Get an EIN Confirmation Letter From the IRS
If you’re still uncertain about whether or not your information is correct, there are a number of ways for you to confirm it.
- Contact the IRS: The simplest way to check that your EIN is valid is by calling the IRS directly at (800) 829-4933. You can speak with an agent who will be able to help verify your information or issue you a new one if needed.
- Use the IRS website: Another option is going online and searching for ‘EIN verification’ on the official IRS website (irs.gov). This page provides information on how to get an EIN but also offers some options for verifying whether or not yours matches up with theirs as well as how long before they expire.
- Use a tax professional: Tax professionals such as accountants and lawyers may have access to their own databases of all active numbers within their clients’ businesses so they should be able to help verify whether yours is accurate right away without having any issues getting in touch with someone on behalf of yourself if necessary.”
Getting a Copy of an EIN Letter From the Bank
One of the first steps in getting a confirmation letter is to contact the bank that issued your EIN and ask for one. The bank will likely provide you with an Authorization Letter. This document contains all of the information you need, including your company’s EIN number, date, and other details about it. You can use this confirmation letter as proof of your business’ existence if needed later on in life—for example: when applying for a loan or applying for government-issued identification such as passports or social security numbers.
In order to receive confirmation letters from banks or credit unions when working with any type of financial institution, contact them directly through phone calls or emails ahead of time (or both) so they know exactly how much time they need before sending out these important documents after opening up accounts at their organizations’ offices.
After reading this guide, you should have a better understanding of Employer Identification Number (EIN), EIN Confirmation Letter, and how to obtain one for your business. If you would like to get help from someone who can get your EIN for you, visit https://micahguru.com/ein-employer-identification-number/ for more information.
Micahguru Formation helps non-US residents start their businesses in the United States. We have an IRS Acceptance Agent who can process your EIN application, reducing the risk of rejection and speeding up the process.