When you are running a business, you should be familiar with the essential legal documents you need for the smooth functioning of the company. The IRS Form SS4 is one of the most important documents you will need in various legal procedures.
You will need legal documents like Form SS-4 when you are applying for a business loan, along with when you are establishing a brand-new business. IRS Form SS4 is fundamentally your EIN or Tax ID registration card. There are several other essential aspects of this Form that you will get to know by reading this article.
Let’s get started.
What is an IRS Form SS4?
IRS is known for giving different official form numbers to various forms, documents, and applications to make it easier for business owners and IRS officials to deal with these documents.
The IRS Form SS4 represents the “Application for Employer Identification Number (EIN)” form. Businesses use this Form to request the IRS to give a unique EIN to their business. The EIN is a nine digits number. The difference between the EIN and the Social Security Number (SSN) is that SSN is assigned to individuals while EIN is given to businesses.
Submitting Form SS4 is vital to develop a tax account for your business taxation procedures with the IRS. Moreover, it is crucial to keep this document in a secure place with you because you will need it at different stages of your business.
What is the purpose of Form SS4?
A wide range of organizations, trusts, and partnerships use the IRS Form SS4 to obtain a business tax account and EIN. Generally, sole proprietors do not need EINs because they have the option of filing tax returns under SSN, but they can apply for EIN if they want to.
It is also possible that you might have to resubmit Form SS4 if there have been some significant changes in the ownership or structure of the organization. Some of the other common reasons why you will have to submit a Form SS-4 to obtain an EIN are:
- When you are establishing a new business and want to hire multiple employees
- If you want to open a business bank account, you will require an EIN.
- When there have been some significant changes in the organization structure or type of business, you will have to update the EIN registration.
- If you have bought a business and it does not have an EIN, you will have to submit the Form SS4.
- EIN is necessary for companies when they are in the process of filing income taxes.
How to obtain the IRS Form SS4?
You can easily download Form SS4 from the official website of the IRS. However, there is also another option of completing the application online so that you don’t have to download, print, and then fill the Form. You can choose whichever option suits you the best.
How to fill the Form SS4?
Once you start the process of filing the IRS Form SS4, you should be familiar with the following data at your fingertips:
- The legal name and address of your business
- The type of business entity that you want to establish, such as a corporation, LLC, or sole proprietorship
- Details about the responsible party
- An estimated number of employees in your business and the average salaries you will be paying them
- The primary reason behind applying for an EIN
- Date of your company registration
It is important to note that the business owners don’t need to submit the Form SS4 by themselves. Instead, they can assign this important responsibility to someone else and provide information about the responsible party.
You can watch the following video to get complete instructions to fill the IRS Form SS4:
How long does it take to submit an SS4 Form?
If you have all of the required information and documents, it will take you only a couple of minutes to fill and submit the IRS Form SS-4. However, IRS usually takes a couple of weeks to process the SS4 Form and assign you the EIN.
The overall duration is also dependent on how you submit the Form SS4 to the IRS. If the form is mailed, you can expect the process to take up to six weeks.
Why is Form SS4 needed for a loan?
When you are applying for a small business loan, there is a very high chance that the lender will ask you for the IRS Form SS4. They are not asking for the EIN application but for the confirmation letter that the IRS sends after your business is given an EIN.
The primary reason lenders ask you for the SS4 Form is that EIN acts as a social security number for your business. On the other hand, if you are applying for a personal loan, your SSN can be enough for the lender.
Following the general guidelines discussed in this article will help you submit the Form SS4 to the IRS and get the EIN. However, business owners should also remember that the actual process of submitting the SS-4 Form can vary based on the type of business and the available information.
It is common for business owners and managers to miss some important information while filling out Form SS4. Hence, you should always get help from professionals and IRS officials to ensure you can get through this process quickly and efficiently.