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What are EIN and ITIN numbers and why they are important?

If your manager embraces the personnel form before you, you ought to get your tax identification number with.

EIN (Employer Identification Number)

EIN is short form of Employer Identification Number and every company or organization that permanently offers jobs to employees and run its business in America must have it. Perhaps, it is necessary that you have an EIN number if you run a business in US even from any other country.

How to Apply for an EIN number?

Confirm that you are eligible:

You can easy be valid to obtain an EIN online if your main commerce is situated within the USA or one of the United States region.

The business owner who completes the online application has to have a valid TIN.

Complete the Online application:

It is necessary to complete the online application in one session as it is impossible to save the data and fill it back later. In the inactivity of 15 min and longer, the application would be cancelled automatically and then you would need to start from the beginning.

Send your request:

If you complete all of your verifications, the US government will give you an EIN just right away. Thereafter, you can download and print your EIN number. Using the EIN number, the tax office can quickly identify your company and assign income tax returns for you.

ITIN (Individual Taxpayer Identification Number)

ITIN is the acronym for Individual Taxpayer Identification Number and any normal person who, even not an American, but runs a business in America is obliged to have it otherwise his business will be illegal. An individual taxpayer identification number (or ITIN) contains nine-digits and the number is assigned by the Internal Revenue Service for businessmen who obliged to have a tax identification number but not permitted to a SSN or an employer ID number.

ITINs are assigned for tax return only to the business owners; they are not for ID purposes. An SSN is ought to be get from new business owners to be used on Form W-4. An Individual Taxpayer Identification Number also is not able to be used to permit work in the US or offer permit for SSN or other benefits.

Examples of individuals who may need an ITIN

  • Non-resident businessmen of USA who file a U.S. tax return and are not allowed to an SSN
  • S. resident who is from another country who files a U.S. tax return and is not qualified for an NHS
  • Employee or spouse of a resident U.S. citizen / foreigner
  • Employee or consort of a non-resident foreign visa holder.

Most tax paying businessmen contain an SSN to use for tax filing reasons. But some residents don’t have SSN; thus these residents obtain an ITIN number or an individual taxpayer. This number is for natural persons, not for businesses, and is used for tax purposes for those who are not entitled to social security numbers. An ITIN is used by foreign or immigrant citizens or their spouses. It cannot be used to check eligibility for work or for social security benefits.