If you are starting a nonprofit organization, one of the first things you will need to do is apply for an EIN. But, what is an EIN? And how do you go about applying for one? This article will explain everything you need to know about applying for an EIN as a non-profit organization, including its significance for filing nonprofit taxes and other administrative purposes.
What Is An EIN?
An EIN, or Employer Identification Number, is a nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax filing purposes. Nonprofit organizations are required to have an EIN in order to open a bank account and apply for 501(c)3 status. Even if you don’t plan on hiring employees, you will still need to obtain an EIN for your nonprofit.
Why Does Your Organization Need an EIN?
An EIN is essential to the operation of your nonprofit organization. As mentioned above, you will need an EIN in order to open a bank account and apply for 501 (c)3 status. And without 501(c)3 status, your nonprofit will not able to receive tax-deductible donations.
Furthermore, an EIN is used to identify your nonprofit organization for tax purposes while filling nonprofit tax exempt form. This is important because nonprofit organizations are exempt from paying federal income tax. Without an EIN, your nonprofit would not be able to take advantage of this tax exemption.
What You Need to Apply for an EIN
Before applying for an EIN, you need to have the following information on hand:
-The name of your nonprofit organization
-The address of your nonprofit organization
-The names of the officers or directors of your nonprofit organization
-The purpose of your nonprofit organization
-The type of structure of your nonprofit organization (e.g., corporation, partnership, etc.)
-The date your nonprofit organization was formed
How to Apply for An EIN
The process for applying for an EIN is relatively simple. You can apply online, by fax, or by mail.
To apply online, you will need to fill out an online application form. The online application process is the quickest and easiest way to obtain an EIN.
To apply by fax, you will need to download and complete Form SS-4. Once you have completed the form, you will need to fax it to the IRS at (855) 641-6935.
To apply by mail, you will need to download and complete Form SS-4. Once you have completed the form, you will need to mail it to the following address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Once your application has been processed, you will receive your EIN in the mail.
Conclusion
Applying for an EIN is a simple process that all nonprofit organizations must go through. By following the steps outlined in this article, you can ensure that your nonprofit is properly registered with the IRS and able to take advantage of all the benefits that come with being a nonprofit organization.