FAQs
Q: What is the price of EINData?
A: Our standard offering is $100/mo and includes 1,000 searches per month with full address and city fields. For larger organizations with
high search volumes or specific needs, contact our sales team here. Finally, every user can get 5 free searches on EINData for free.
Q: Does EINdata offer TIN/Name matching for large files?
A: Yes. If you wish for our team to provide batch matching services, contact our sales department.
Q: Can I easily integrate EINdata with my AP system?
A: Yes. EINdata offers annual plans that are all available via API.
Q: Does the IRS or another governmental body run EINdata?
A: No. However, much of the data found on EINdata is obtained through government agencies to ensure the highest quality.
Q: What Is An EIN?
A:
- The term EIN is commonly used interchangeably with TIN. A TIN, otherwise known as a tax identification number, is a unique number issued to a business, person, or other legal entity. There are several types of Tax Identification Numbers to include an Employer Identification Number (EIN), a social security number (SSN), or an Individual Tax Identification Number (ITIN).
- These unique nine-digit numbers are used by the Internal Revenue Service (IRS) and many other institutions such as banks and government entities to help identify a person, business or other legal entity.
Q: When Do Businesses Need An EIN?
A: Businesses need an EIN for almost everything they do. Whether you form a business entity, a trust, operate as a sole proprietorship, or self-employed, we recommend all business owners not wishing to use their Social Security Number as their TIN apply for an EIN as soon as they begin to operate.
Q: What Are EINs Used For?
A: Whether operating as a sole proprietor, self-employed or as a business entity, EINs are used almost daily. From filing a tax return or submitting a document to the IRS or other government entity, to opening a bank account or applying for a loan or credit, EINs are used to identify the individual or business providing the record.
Q: When Do You Need Another Company's EIN?
A: EINs are regularly used to identify the existence of an entity by many institutions and government bodies. Thus, you may need a company’s EIN when seeking to validate/verify their information. Some of the most common places you would need a company’s EIN is when preparing a Form 1099 to submit to the IRS, preparing a business’ tax return, or looking to process an important application such as opening a bank account, a loan application, or insurance underwriting.
Q: Why Are EINs Beneficial To Have?
A: An EIN is a unique identifier to your business or legal entity. Often times, individuals want to protect their Social Security Numbers (and rightfully so). Using an EIN to identify your business allows you to protect your personal social security number while still maintaining a recognized and accepted identifier as you conduct your affairs.
Q: How do I apply for an EIN?
A:
- Applying for an EIN is done directly through the IRS website and by using Form SS-4 Application for Employer Identification Number. The Form, as well as instructions to complete the form can be found at the following links: [IRS form SS-4](https://www.irs.gov/pub/irs-pdf/fss4.pdf) (application) [IRS instructions for SS-4](https://www.irs.gov/pub/irs-pdf/iss4.pdf) (instructions).
- Additionally, the IRS allows individuals to apply for a new EIN directly online. The process takes approximately 5 to 10 minutes and you can download your EIN confirmation letter immediately. [Apply for an EIN online](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online)
Q: What occurs if you acquire an EIN but never use it?
A: If you acquire an EIN but never use it, the number remains affiliated with your entity.
Q: Is there a downside to getting an EIN?
A: Since it costs nothing to acquire or maintain an EIN, and you’re not obligated to use it, there’s no downside to getting an EIN.
Q: What information is required prior to requesting an EIN?
A: Prior to requesting an EIN, you should ensure you have access to a valid Taxpayer Identification Number (SSN, ITIN, EIN). To complete the application you will also need to have general information such as the entity name, address, date of formation, and purpose of the entity.
Q: How much time does it take to approve an EIN?
A: The turnaround time on an application is contingent upon the volume of applications the IRS has to review. Once your EIN application is submitted to the IRS, you can expect to receive a response once your application items have been validated. The IRS allows an online application and in certain instances, the EIN can be issued immediately. If you submit the application via fax or mail, it can take up to several weeks.
Q: Does my business name have to match my EIN?
A: Yes, you should ensure your EIN is associated with your business name.
Q: Does Filing Taxes Require an EIN?
A: If you are an employer paying federal taxes, you must have an EIN. There are a few exceptions such as sole proprietors. If you think an exception may apply, we suggest speaking with a tax professional.
Q: Who Requires a Federal Employer ID Number?
A:
- LLCs
- Corporations
- Partnerships
- Non-Profit Organizations
- Trusts & Estates
Q: Does a Sole Proprietorship Need an EIN?
A: A sole proprietorship can use a SSN to file taxes rather than an EIN but as always we suggest speaking with your tax professional to determine which option is best for you.
Q: Should I Register My Business Legally Before Obtaining an EIN?
A: It's not explicitly stated, but it's generally recommended to have your business legally registered before applying for an EIN.
Q: How much does getting an EIN number cost?
A: Applying for an EIN number is a service provided by the IRS, which is funded by tax payer dollars. You can apply for an EIN number for free on the IRS website.
Q: Does an EIN expire?
A: No, an EIN does not expire. However, there are certain instances in which an entity may be required to obtain a new EIN.
Q: Is a Tax ID the same as an EIN?
A: While the term Tax ID number (TIN) is often interchanged with the term Employer Identification Number, it should be noted that an EIN is a type of Tax ID number.
Q: What distinguishes an EIN from a TIN?
A: A TIN is a broader term of which is used to describe types of Tax Identification Number, of which an Employer Identification number falls into that category.
Q: When I enter a TIN validation query, what can I expect from the search results?
A: TIN validation will confirm that a name & TIN combination match.
Q: When I enter a TIN lookup query, what can I expect from the search results?
A: A TIN look up will provide missing information including these fields: Company name, City, State, Zip Code, FEIN number, Date acquired, NCOA update date, Other possible names, Other detail.
Q: Why get an EIN if you don't have to?
A: Reasons to get an EIN include: Wanting to open a bank account specifically for business income and expenses, buying items for your business with a company card, needing to take out a business loan to start or scale your business, not wanting to use your personal Social Security number.
Q: How to close an employer identification number?
A: Once you apply & create an EIN, the IRS cannot close or cancel it.
Q: How should I proceed if I lose my EIN?
A: If you need to find your EIN number, you should contact the IRS.
Q: Can I have more than one EIN?
A: You can have one EIN per entity.
Q: Which is preferable, an EIN or a Social Security number?
A: Deciding between EIN or SSN comes down to what your goals are and if you are comfortable distributing your SSN. Typically, any business entity aside from a sole proprietorship will require an EIN as might certain other legal entities. If you are primarily doing gig work and filing as a sole proprietorship, you may be comfortable with using your SSN. If you are unsure, talk to your tax professional to decide which option is best for you.
Q: How can I contact EINData?
A:
Please email us at [email protected] if you have any questions about EINData or our services.
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