1. Why Corporations Need an EIN
Corporations are separate legal entities from their owners. An EIN is required to:
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File federal and state taxes
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Open business bank accounts
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Hire employees and handle payroll taxes
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Apply for business licenses and permits
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Establish credit in the corporation’s name
Without an EIN, a corporation cannot legally operate as a fully recognized entity under federal law.
2. Who Must Apply for an EIN
All corporations, including C-corporations and S-corporations, must obtain an EIN. This includes:
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Newly formed corporations
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Corporations that are changing structure or ownership
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Out-of-state corporations operating in the USA
Even if the corporation does not have employees, an EIN may still be required for tax and banking purposes.
3. How to Apply for an EIN
Corporations can apply through multiple methods:
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Online (fastest) – Through the EIN application portal at https://einregister.online/
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By phone – (502) 547-2551
Tip: Applying online provides immediate issuance of your EIN.
4. Using Your EIN
Once obtained, the EIN is used for:
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Filing corporate income tax returns (Form 1120 or 1120S)
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Paying payroll and employment taxes
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Opening bank and merchant accounts
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Registering for state taxes and permits
The EIN acts as the corporation’s federal tax identification number, separate from the owner’s Social Security Number (SSN).
5. EIN Compliance for Corporations
Corporations must ensure:
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EIN information is up to date with the IRS
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Records are kept of EIN assignments and usage
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EIN is not shared improperly to prevent fraud
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Corporate filings and tax returns correctly reference the EIN
Failure to use or maintain an EIN properly can lead to penalties or administrative issues.
Key Takeaways
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An EIN is mandatory for all corporations in the USA.
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It is used for taxes, payroll, banking, and legal compliance.
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Corporations can apply online or by phone.
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Proper EIN usage and recordkeeping are essential for IRS compliance.