Confirming Your Company EIN
After deciding to form a new business and initiating the first step by forming a new Delaware company, some clients often will also decide to obtain an EIN or Federal Tax Identification Number for their company. An individual will need this company EIN number if they plan to conduct business activities within the United States. For example, if a business owner is planning to open a U.S. Bank account or hire employees, they are required to obtain the EIN for their company.
When future business clients add or proceed with the EIN Service, an SS4 application is completed and submitted to the IRS to obtain the Federal Tax ID Number for the company. The form will either be faxed or submitted electronically based on the information provided. And while the EIN number will be listed on the SS4 form once issued by the IRS, many times, business clients require further proof that the EIN validly belongs to their entity.
For example, a bank may require you to provide more than just the company EIN number depending on that bank’s specific requirements. Payment gateway providers may also require confirmation of the EIN number. Sometimes, you will be asked to provide an IRS generated confirmation letter which is called a CP 575. The IRS mails this confirmation letter to the mailing address that you listed on the SS4 application typically within eight to ten weeks after the EIN has been issued by the IRS. And please note, this confirmation letter is only generated at the time the company EIN is issued by the IRS and cannot be regenerated.
The CP 575 will generally include the following details:
-The name of the entity
-The principal address of the entity
-The nine-digit EIN of the entity
-Information pertaining to any Federal Tax Forms that the company may need to submit along with the due dates
-Is sent physically in the U.S. mail (cannot be obtained online)
*Can only be issued once
It’s also important to note that new clients generally consult with a tax professional or accountant for guidance pertaining to any Federal Tax Forms/Filings that may be required by the IRS. Harvard Business Services, Inc. can assist with the annual Delaware Franchise Tax.
Sometimes, a new business owner may need this confirmation letter as proof right away or they in some situations may not receive the document from the IRS even though the EIN has already been issued by the IRS. If this occurs, clients will sometimes inquire about a 147C Letter. This is an IRS verification letter as opposed to the IRS generated confirmation letter.
The 147C Letter will generally include the following details:
-The name of the entity
-The principal address of the entity
-The nine-digit EIN of the entity
-The letter can be faxed or sent in the mail (cannot be obtained online)
*Can be issued more than once
If you misplaced the EIN Confirmation letter or never received one within the expected time frames from the IRS, click here to access a link that will provide detailed instructions on how to request the 147C Letter from the IRS.
If you plan on forming a new Delaware company and have any questions regarding the formation process, we can be reached at 1-302-645-7400 or 1-800-345-2677 ext. 6900 or via email at info@delawareinc.com. We can also be reached via skype at delawareinc.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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There is 1 comment left for Confirming Your Company EIN
abdul haleem said: Thursday, September 15, 2022Can we open our company bank account while I owner is living other country
HBS Staff replied: Monday, September 19, 2022Hello Abdul,
The bank account for the company can be opened anywhere in the world and with any bank of your choice. If you require to open a U.S. Bank Account they will require you to appear in-person with the Certificate of Formation/Incorporation and Federal Tax ID Number.