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There are numerous types of tax IDs but you apply for EIN or Employer Identification Number, Social Security Number (SSN), and Individual Tax Identification Number (ITIN) as these are the three most used IDs for businesses.
There are 10 entities to choose from when filing for a Tax ID. These entities include:
- Sole Proprietor/Individual
- Limited Liability Company
- Estate of Deceased Individual
- Personal Service Corporation
- Non-profit Organization
- Church Controlled Organization
Working individuals in the U.S. use SSN as their tax IDs. This kind of tax ID is also used, with regards to tax returns, by Sole Proprietorships and Limited Liability Companies that don’t have employees. Learn more about a tax id application here.
Individuals on temporary visas, non-resident aliens, and other non-citizens in the U.S. only use ITINs as their identification for taxing purposes and for opening bank accounts.
The Employer Identification Number (EIN), on the other hand, is used by the following entities to build their account and establish credit with banks and to establish their business for taxation purposes.
- Sole Proprietors
- Non-profit organizations
EIN Application Process
Once you have identified the appropriate entity that you want to register, the next steps are easy. The next to do to file a one-page form called SS4. After filling out the form with pertinent details, you can review the details and submit the same.
For EIN applications submitted before 7 PM EST, your respective EINs will be released to you on the same day. For those who submitted after the said time, you can expect your EINs delivered on your email on the next business day.
Save yourself the hassle and apply for EIN online.