What is Form SS-4?

Form SS-4 is the application used to obtain an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. This unique nine-digit number is assigned by the IRS and is essential for various business activities, including:

• Opening a business bank account

• Filing tax returns

• Hiring employees

• Applying for business licenses and permits

Who Can Apply for Form SS-4?

Any entity or individual that requires an EIN can apply using Form SS-4. This includes:

• Sole Proprietors: Individuals operating as sole proprietors who need an EIN for business purposes.

• Partnerships: Entities formed by two or more individuals or businesses looking to establish a partnership.

• Corporations: Both C Corporations and S Corporations need an EIN for tax reporting and compliance.

• Limited Liability Companies (LLCs): LLCs must obtain an EIN for various business activities.

• Non-Profit Organizations: Charitable organizations and other non-profits applying for tax-exempt status must also apply for an EIN.

• Estates and Trusts: Executors and trustees may need an EIN for estate and trust administration.

Requirements for Applying

To apply for an EIN using Form SS-4, you’ll need to provide the following information:

• Legal name and address of the business or individual

• Type of entity (e.g., corporation, partnership, sole proprietorship)

• Reason for applying for an EIN (e.g., starting a new business, hiring employees)

• Name and Taxpayer Identification Number (TIN) of the responsible party

• Number of employees expected in the next 12 months (if applicable)

Importance of Form SS-4

1. Legal Compliance: Obtaining an EIN is often a legal requirement for businesses, ensuring compliance with federal regulations.

2. Tax Reporting: An EIN is necessary for filing various tax returns and forms with the IRS.

3. Business Credibility: Having an EIN can enhance your business's credibility, making it easier to open bank accounts and secure financing.

4. Employee Hiring: An EIN is required for reporting employment taxes and for hiring employees legally.

5. Separation of Personal and Business Finances: An EIN helps separate your business activities from personal finances, which is important for liability protection.