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					All About Business Company | PO Box 3402 | Fredericksburg, VA 22402 | 877-710-6016
                            AllAboutBusinessCompany.com




                  EMPLOYER IDENTIFICATION NUMBERS
                             MADE EASY


  1. Employer Identification Number – You will need an Employer Identification Number if you
     have employees, operate your business as a corporation or partnership, file Employment,
     Excise, or Alcohol, Tobacco and Firearms tax returns, withhold taxes on income, have a
     Keogh plan, or if involved with trusts, estates, real estate mortgage investment conduits, non-
     profit organizations, Farmers’ cooperatives and plan administrators. You can apply for an
     EIN by:

          a. Online – The Internet EIN application is the preferred method for customer to apply
             and register for an EIN number. Once the information is validated during the online
             session, and EIN number is issued immediately. You may access the online
             application by clicking this link:
             http://www.irs.gov/businesses/small/article/0,,id=102767,00.html.

          b. Apply by EIN Toll-free Telephone Service – Taxpayers may obtain an EIN
             immediately by calling the Business & Specialty Tax Line at (800) 829-4933. The
             representative takes the information, assigns the EIN, and provides this information
             to the customer over the phone.

          c.   Apply by Fax – Customers can apply for an EIN by faxing in the completed SS-4 to
               their state fax number. If the customer includes their fax number the EIN will be faxed
               to them within 4 business days. You can access the SS-4 at this link:
               http://www.irs.gov/pub/irs-pdf/fss4.pdf. For a list of state fax numbers please click this
               link: http://www.irs.gov/file/article/0,,id=111138,00.html.

          d. Apply by Mail – Customers can apply for an EIN by mail. The process normally
             takes four weeks. You can access the SS-4 that you need to complete by clicking on
             this link: http://www.irs.gov/pub/irs-pdf/fss4.pdf. For the mailing address please click
             this link: http://www.irs.gov/file/article/0,,id=111138,00.html.




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You will need a new EIN if any of these conditions exist:

        1. Sole Proprietor – You will need a new EIN if you file bankruptcy,
           incorporate, take in partners or operate as a partnership, or purchase or
           inherit an existing business that you operate as a sole proprietorship. (You
           will not need to change your EIN if you change your name, move to a
           different location or if you operate multiple businesses.)

        2. Corporations - You will need a new EIN if you receive a new charter from
           the secretary of state, subsidiary of a corporation using the partner’s EIN or
           you become a subsidiary of a corporation, change to a partnership or sole
           proprietorship or if a new corporation is created after a statutory merger.
           (You will not need to change your EIN if you are a division of a corporation,
           the surviving corporation uses the existing EIN after a corporate merger, a
           corporation declares bankruptcy, name or location change, choose to be
           taxed as an S corporation, or if reorganization changes only the identity or
           place.)

        3. Partnerships – You will need a new EIN if you incorporate, partnerships is
           taken over by one of the partners and is operated as a sole proprietorship, or
           end an old partnership and begin a new one. (You will not need to change
           your EIN if your partnership declares bankruptcy, name changes, change the
           location of the partnership or add other locations, a new partnership is
           formed as a result of a termination of a partnership under IRC section
           708(b)(1)(B) or if 50% or more of the ownership of the partnership changes
           hands within a 12-month period.

        4. Limited Liability Company (LLC) – A LLC is an entity created by state
           statute, thus the IRS did not create a tax classification when it was created
           by the states. An LLC is always classified by the IRS as one of these tax
           entities: business taxpayers: corporation, partnership or disregarded as an
           entity separate from its owner, referred to as “disregarded entity”. If the
           “disregarded entity” is owned by an individual it is treated as a sole
           proprietorship. If the “disregarded entity” is owned by a corporation or
           partnership, it is treated as a division of its owner. (Important: If a single
           owner LLC was filing and paying employment taxes under the name of the
           owner and no EIN had been assigned to the LLC, a new EIN will be required
           for wages paid after Jan 1, 2009.) To recap, here are the scenarios for
           needing a new EIN:

                a. The primary name of the account is the owner of the business

                b. A new LLC with more than one owner is formed under state law

                c.   A new LLC with one owner is formed under state law and chooses to
                     be taxed as a corporation or a S corporation




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                              d. A new LLC with one owner is formed under state law and has excise
                                 tax filing requirements beginning on or after Jan 1, 2008, or an
                                 employment tax filing requirement for wages paid after Jan 1, 2009.

                      5. Estates – You will need a new EIN if a trust is created with funds from the
                         estate or if you represent an estate that operates a business after the
                         owner’s death. (You will not need a new EIN if the executor changes their
                         name or address.)

                      6. Trusts - You will need a new EIN if one person is the grantor of many trusts,
                         a trust changes to an estate, a living trust changes to a testamentary trust, or
                         if a living trust terminates by distributing its property to a residual trust. (You
                         will not be required to change an EIN if the trustee changes or the grantor or
                         beneficiary changes their address.)



RESOURCES:

  1   Tax Guide for Small Businesses
      http://www.irs.gov/publications/p334/index.html

  2   Employers Tax Guide
      http://www.irs.gov/publications/p15/index.html

  3   Understanding your EIN
      http://www.irs.gov/pub/irs-pdf/p1635.pdf

  4   Local Small Business Administration Office
       http://www.sba.gov/localresources/index.html




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