Even if you own or start a small business with few employees working for you, IRS will require an OK Tax ID. The common term for EIN is the federal tax identification number. They are free and easy to get, if you know how and where to get one. Let’s take a look at how to get the number and why IRS require them for self-employed people.
Basically the EIN is as important to a business as the social security number is to an individual. And just like the SSN, you can get the EIN free of cost. Beware of those online services offering the EIN for a fee. Note that the IRS keeps your personal information safe and so you get it for free.
Employers are not the only people who are required with EIN. Businesses involved in alcohol, tobacco, firearms, excise taxes, withholds taxes for payments to non-resident aliens, and Keogh retirement plan are required to apply for OK tax ID number. Anyone running a corporation, operating a partnership, or involved in trusts will definitely need an EIN.
In the business world, you will be using your OK tax ID number for a lifetime. When you open a bank account, apply for licenses, file tax returns or other legal transactions, the EIN is required. You will simply have to download the application form SS-4 from the IRS website or contact their toll free number. You need to follow instructions and accomplish it with accurate information to make the IRS know your business. The application process will usually take one or two weeks to process. If it is sent through fax or mail, it will take you another five weeks to get your number by mail. No other people can apply for the business’s EIN except for the person concerned.
Once you have applied, you can indicate in the tax return form “Applied for” and the date of the application in the space where the number belongs. However, without the actual OK tax ID number, you are required to send the tax return form through mailing. If you have the actual EIN, you can send the return by electronic filing and processing.