How long does it take to get an EIN number?
If you want to start a business in the United States or grow your activities there as an Indian entrepreneur, getting an EIN (Employer Identification Number) is an important first step. The Internal Revenue Service (IRS) uses this number to identify your business for tax reasons, similar to how a social security number identifies an individual. But how long does it take to receive an EIN number, and what variables influence this time frame? This article goes over the procedure in depth and shows why having a CFO, particularly one from India, might be beneficial.
What is the EIN number?
An EIN, or Employer Identification Number, is a unique identity required for each firm operating in the United States. You will need it if you intend to recruit personnel, create a company bank account, submit taxes, or apply for certain business permits. Obtain an EIN number, whether you’re a single proprietor, corporation, or LLC, is typically one of the first stages in officially establishing your business in the United States.
How to Get an EIN Number?
The process of applying for and acquiring an EIN number is quite simple, however the time it takes varies depending on how you apply. The IRS offers numerous ways to apply: online, by fax, mail, or phone (for overseas applicants).
- Online Applications: The IRS web gateway is the quickest and easiest way to get an EIN number. This option is accessible to firms that have a valid Taxpayer Identification Number (TIN), which can be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). For Indian applicants, this phase may require the aid of a local representative or a CFO in India who can give the relevant tax information. If you apply online, you will obtain your EIN immediately after finishing the application.
- Fax Application: If you choose not to submit your application online, you can do so by fax. After faxing your completed Form SS-4 to the IRS, you should get your EIN number within four business days. Keep in mind that international faxing may extend the time it takes for the IRS to react.
- Mail Application: For individuals who want to apply by mail, the process is substantially slower. The IRS estimates that postal applications might take up to four to six weeks to process. International mailing times may cause significant delays to this estimate.
- Phone Application: International applicants, including those from India, may apply for an EIN by phoning the IRS directly. This technique is often faster than mail and fax, however wait periods vary depending on the number of applications being handled.
How long does it take to get an EIN number?
The time it takes to receive an EIN number is primarily determined on the application process you pick.
- Online: Immediate (within minutes).
- Fax: Around four business days.
- Mail: 4-6 weeks
- Phone: Depending on call volume, you might have your EIN within a few days.
The most expedient option for Indian entrepreneurs or enterprises expanding to the United States is to apply online, particularly if the procedure is managed by a CFO in India. However, if the IRS requires extra verification, the EIN may take longer to be issued.
Factors That Can Influence Processing Time
Several variables might affect how long it takes to acquire your EIN number. One such element is the application’s accuracy. Errors or missing information may cause a delay in the procedure. Furthermore, during peak demand periods, such as tax season, the IRS may face delays in processing applications.
For Indian enterprises, it is critical to supply precise information about the company’s legal structure and U.S. address. A CFO in India who is knowledgeable with US tax legislation may assist in completing the application accurately and effectively.
In India, the role of a CFO is to obtain an EIN
Hiring a CFO India might be a wise move if you intend to extend your firm into the United States. A Chief Financial Officer (CFO) who is knowledgeable about both the Indian and US tax systems can help you get an EIN number more easily. They can also assist in ensuring compliance with local and international legislation, which can be difficult and time-consuming.
A CFO headquartered in India can help you register for an EIN or manage your US taxes, bridging the financial divide between the two nations.
Also Read: Drive Sales Success: Optimize Territory Management
Conclusion
The time it takes to receive an EIN number is primarily determined on how you apply and the correctness of your application. While the internet approach generates an EIN quickly, other means, such as fax, mail, or phone, may take longer. Working with a CFO in India who understands both Indian and US tax legislation can help Indian entrepreneurs navigate the process more smoothly and quickly. By selecting the appropriate application process and ensuring that all information is correct, you may acquire an EIN quickly and focus on building your business in the United States.
