In operating a successful business with employees looking to help you achieve your goals and objectives, the EIN and EIN confirmation letter is usually one of the first things you have to settle before your business takes off the ground running. Therefore, to avoid any confusion as you start processing the establishment of your business, this article will look into the EIN, EIN confirmation letter, and the various intricacies embedded in this discourse. The information given in this article will help you set up your business professionally and avoid any issues with any authority.
What is an EIN?
The EIN is an acronym for Employer Identification Number. To put simply, the EIN is to businesses, as the social security numbers are to individuals. The EIN is an identification number through the IRS and other authorities use to identify organizations. In addition, EIN is used to report income tax-related operations and ensure that the IRS is kept abreast of any tax activity.
The IRS uses the EIN to identify a company and its ideals, and it is usually issued for corporations looking to start their businesses. However, for a business to employ staff or employees, there is a need for an EIN.
What is an EIN Confirmation Letter?
The EIN confirmation letter is the document that business owners recover after completing the EIN registration. This letter serves as a confirmation of your EIN, and the tax ID certificate can be saved. The EIN confirmation letter is also called CP 575 and is sent out by the IRS eight to ten weeks after a business has been issued the EIN. Although the EIN confirmation letter can be downloaded, the IRS will send the letter after eight to ten weeks to the address mentioned on the SS-4 form.
Why do you need this?
Both the EIN and the EIN confirmation letter are integral to the success of a Limited Liability Corporation, asides from being one of the ways of identification by the IRS. The EIN is used to file tax returns, but it is also necessary to open an LLC bank account.
Furthermore, the EIN is imperative when an organization obtains business licenses and industrial permits to expand the business.
The submission of form 1099 for contracting works also requires the EIN and the EIN confirmation letter. Plus, many business owners need the EIN to avoid using their social security numbers for business activities. Finally, the EIN is necessary for your business, as investors, authorities, and vendors looking to partner with the company usually request it.
CP575 v/s 147C
LLC or business owners can sometimes misplace the EIN confirmation letter that the IRS issued. Unfortunately, the CP575, also known as the EIN confirmation letter, is computer generated and can only be issued once. Therefore, most business owners are in disarray as even when they call the IRS, there is no way they can replicate the CP575 again for the business since we understand the importance of the EIN confirmation letter in opening LLC bank accounts and other parts of a business. Therefore, the IRS has sought a solution to alleviate the fears of LLC business owners.
On the other hand, the 147C services as a replacement for the EIN confirmation letter issued by the IRS. This is the document that business owners use when they cannot find their CP575.
How to Obtain an EIN from the IRS?
We understand that the IRS is responsible for issuing the EIN to the LLC. However, there are different ways through which you, as a business owner, can obtain the EIN.
There are some most popular ways through which you can get this done as below:
By calling IRS
Follow the steps mentioned below to obtain EIN by calling IRS:
Generate your fax number
Not many people use fax anymore. Therefore, you can generate your fax number using a virtual fax service.
Prepare your company’s essential documents
It is essential that before you place the call to the IRS, you need to prepare all the documents related to the business. The IRS agent who will receive the call will want you to confirm the company’s information to show that you are related to the business. Therefore, be sure to have the company name, address, EIN, incorporation date, number of employees, and other relevant information about your company.
Call the IRS tax line
You must be an accredited member of the LLC to get across to the IRS to request the EIN confirmation letter. Therefore, the tax line is 800–829–4933, but you will have to stay on the line for about an hour to speak to a representative.
Request an EIN confirmation letter
After waiting patiently, you can request that the representative fax the EIN Confirmation letter to you.
Provide information as being asked of you
Remember to have all the company information with you that was earlier last so that there will be no issues when the representative is asking you questions. Bear in mind that the IRS is doing its job; hence if they detect any form of abnormality, there may be issues in getting the EIN.
Receive the EIN confirmation letter
Once you have verified all the requirements that the IRS representative has requested, you can proceed to ask that your EIN Confirmation letter be sent via fax or email.
If your contact information is the same as when you applied for the WIN, you can provide the IRS with your FAX number. However, it is best to have a secure fax service provider as a third party can intercept the data that may come through.
By applying online
This is the easiest way to obtain the EIN and the confirmation letter, as the process can be completed within minutes. Here are the steps for applying online:
Approach IRS website
You can apply on the IRS website and obtain the EIN and the confirmation letter seconds later. Consequently, you can choose to download the letter as proof of your registration.
Complete the application process
The application process follows an in-style interview method that requires you to answer the questions with relevant answers regarding the business.
Provide required information
You need to complete the application in one session. Therefore, you need to have all the necessary information at your disposal to avoid any issues. The information you will need is the company’s registered name, current business address, business structure, primary business operations, and the reasons for obtaining the EIN.
Get an EIN confirmation letter immediately
Once you have completed the application process, you immediately get the EIN Confirmation letter, which you can download.
From other resources
Although getting a confirmation letter from the IRS is the usual route. Some people prefer taking a shorter approach to obtain the EIN confirmation letter for businesses. Here, we will look at the different ways through which you can obtain the EIN confirmation letter.
Getting your EIN confirmation letter will usually take up to eight to ten weeks. In some cases, you may need the verification letter urgently. For example, a vendor or an investor looking for a partnership with your company may request it. Most business owners would have submitted their EIN certificate to the bank, and getting a photocopy will not be much of a hassle.
However, you need to understand that the photocopy does not serve as a substitute or replica of the EIN confirmation letter that the IRS issues LLC. The photocopy can only be used as proof to vendors and investors.
From your launch account
There is excellent news for the company that restarted after May 15, 220. You can take a screenshot of your EIN confirmation letter electronically from a company information section of your launch account.
From an external accountant or agency
Business owners who applied for the EIN from an external accountant or an agency can still get their EIN confirmation letter from them. That is easier than waiting for the IRS for months.
How Long Does it Take to Get a 147C Letter?
We already understand that the 147C letter is a replacement for the computer-generated EIN confirmation letter by the IRS. However, you can request the 147C letter from the IRS. Depending on the method through which you request the letter, the days of arrival may vary.
For business owners using mail, you should expect a delta of up to four to six weeks. However, the 147C letter requested via fax can be gotten immediately if you have all the necessary information since the IRS agent will fax you the form.
Frequently Asked Questions
The EIN CP 575 is a computer-generated document that is issued by the IRS only once. That is done after you have successfully applied for the EIN. However, some business owners sometimes misplace the EIN Confirmation letter or need the EIN proof to show banks and investors; therefore, the IRS issues the 147C letter as a replacement.
The primary reason for needing the 147C EIN verification letter is when you misplace the EIN given by the IRS. However, you can use the 147C letter to open a bank account and verify business profiles on PayPal.
It is excellent for business owners as they can get the 147c letter the same day they place a call to the IRS. However, they may have to wait a bit while on the phone. It would be best if you had virtual fax since not many people use fax anymore. Once you get virtual fax, you can write the fax number. Secondly, you should get all the documents and information of your company ready to answer the IRS agent’s questions. That will help to verify your relationship with your company.
You can then call the IRS tax line, 800–829–4933. After that, you can request a new confirmation letter to the new fax number generated. Then download the document.