Let me walk you through what an SS4 form is, any business owner should be aware that there are several legal documents that are significant for them to keep the business in operation. Unlike others, the SS-4 form is extremely important. Therefore, whenever you are planning to start a new business or have already started a new business, you will need to comply with the IRS regulations and file several forms. Note that these forms are mainly filed for taxes.
Form SS-4 can also be used to apply for an employer identification number (EIN). An EIN is a 9-digit number (e.g. 12-3456789) assigned to employers, sole proprietors, partnerships, corporations, estates, trusts, certain individuals e.t.c. for tax filing and reporting purposes. An EIN is used in connection with your business activities only. Never use your EIN in place of your social security number (SSN) or individual taxpayer identification number (ITIN).
How To Apply For Your SS4 Form
The most common of all forms is the form of SS4. Hence, this serves as the owner’s Tax ID and their employer identification number (EIN). Along with all of the other business documents, owners will need to always have this on hand for the different business phases that they’ll undergo.
When it comes to filing for a small business loan, the form SS-4 becomes necessary. While most persons tend to become very stressed and overwhelmed with the entire loan process, it’s best that they research all of the options, secure the relevant documents and even complete all the necessary paperwork beforehand. At times, most business owners feel that they’ve got too much to deal with and the entire process of acquiring a loan is not something they know much about; this applies when it comes to securing the relevant documents.
The SS4 form is necessary just as it has been mentioned above. Since most, if not all lenders actively request it as a part of the application phase. Besides just the SS-4 form, there’s also a form SS-4 letter. Simply put, the SS-4 letter is used for IRS purposes.
Corporations generally used the SS-4 form letter to apply for their employer identification number. This is also known as the SS-4 IRS Notification Letter. The letter holds some important details such as the employer identification number and it acts as a form of confirmation that business owners may need.
An employer identification number is needed for the following reasons:
- Employers need the employer identification number to apply for a business license
- For federal tax reporting
- Business owners are always asked for their employer identification number when they’re opening a business bank account
In order words, IRS uses an owner’s EIN to identify their business. The form SS-4 letter is an official IRS document that allows business owners to file for their employer identification number.
Generally, business owners tend to question if they really need the employer identification number. However, they’ll need one if their business has the following:
- The business depends on employees for operations
- If owners are planning on applying for a business license, a business bank account, or credit
- If the business functions as a corporation or a partnership
- If the business is operating under any class of incorporation such as a non-profit, an LLC, a C-corp, or an S-corp instead of a sole proprietorship.
Moreso, there are other reasons in which business owners will need to apply for their identification number, and owners are advised to conduct their own research into the various reasons. It’s better to have the complete list so that business owners don’t run into trouble later on.