Any organization that will operate within the borders of the United States must have an EIN. An Employer Identification Number is a unique number that is recorded by the IRS and identifies the organization. Whether that particular organization will hire employees right now or in the future, an EIN number must be assigned to the hired employees.
If you need to get an Employer Identification Number (EIN) but don’t know how to get it, have no worries. It is a straightforward process that requires you to file a form with the IRS. So, to request your Employer Identification Number from the IRS, you need the IRS Form SS-4.
In addition to this, you can submit this form by phone, mail, or fax. On the other hand, if your organization is formed outside of the United States or its territories, you should apply for an EIN number by telephone. One thing to note about the application is that you should mark the church, church-controller organization, or non-profit organization as an entity type in the form.
Employer Identification Number is not the same as Tax Exempt Number
Most people often confuse Employer Identification Numbers with tax-exempt numbers. However, they are totally different numbers, and tax-exempt numbers should be provided by the state agency. In this way, your organization can be exempt from state sales and use taxes.
You should also legally form your organization to be able to apply for an employer identification number. You will have three years to apply for an EIN starting from the first day of the official formation of your organization.