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DUNS Number Gets Replaced By Unique Entity Identifier (UEI)

February 11, 2023Blog, Resources, Running a Business, Starting a Business0 comment

The federal government has introduced a new unique entity identifier known as the Unique Entity ID, which has replaced the D-U-N-S Number. This change has implications for small businesses, and it’s important to understand what actions need to be taken in response.

A Unique Entity Identifier (UEI) is a new identifier that has been introduced by the federal government to replace the D-U-N-S number. UEI is a unique identifier assigned to organizations, entities, and individuals who are eligible to receive federal financial assistance, including grants and contracts. The UEI is used by the federal government to track and manage financial assistance and to reduce the risk of waste, fraud, and abuse in the federal assistance program.

What is a Unique Entity Identifier (UEI)?

Unique Entity Identifier (UEI) is generated and maintained by the System for Award Management (SAM), which is the official U.S. government system for consolidated award management information. SAM is used by the federal government to manage the procurement process and to maintain accurate and up-to-date information about organizations that receive federal financial assistance.

Small businesses that wish to receive federal financial assistance may need to obtain a UEI in order to participate in the procurement process. Obtaining a UEI typically involves providing basic information about the business, such as its legal name, physical address, and taxpayer identification number.

If your business or nonprofit is already listed in the System for Award Management (SAM) database, either as an active or inactive entity, you already have a Unique Entity Identifier (UEI). You can locate it on the SAM.gov website.

If your business or nonprofit has not yet registered with SAM.gov, you will receive a UEI as part of the registration process. Registration on the SAM.gov website is free of charge.

Is the Unique Entity Identifier the Same as DUNS?

No, the Unique Entity Identifier (UEI) is not the same as the D-U-N-S (Data Universal Numbering System) number. The UEI is a new identifier that has been introduced by the federal government to replace the D-U-N-S number for organizations and entities that receive federal financial assistance, including grants and contracts.

The D-U-N-S number, on the other hand, is a unique nine-digit identifier assigned by Dun & Bradstreet (D&B), a leading global provider of business information and data analytics. The D-U-N-S number is widely used as a standard identifier for businesses, especially in the United States, for purposes such as credit reporting, loan applications, and government contract bidding.

In summary, the UEI and D-U-N-S number serve different purposes and are assigned by different entities. However, businesses that receive federal financial assistance may need to obtain both a UEI and a D-U-N-S number.

How Do I Find My UEI Number?

You can find your Unique Entity Identifier (UEI) number by following these steps:

Go to the System for Award Management (SAM) website: Visit the SAM.gov website at https://www.sam.gov/.
Log in to your account: If you have already registered your business or nonprofit with SAM.gov, log in to your account using your username and password.
Access your entity information: Once you have logged in, go to the “My SAM” section and click on the “Entity” tab to access your entity information.
Find your UEI number: Your UEI number should be listed on the “Entity” page, along with other information about your business or nonprofit.

If you have not yet registered with SAM.gov, you will receive a UEI number as part of the registration process. The UEI number is assigned automatically by SAM.gov when you complete the registration process and provide the required information about your business or nonprofit.

It’s important to note that the UEI number is a critical component of the federal government’s procurement process, and businesses and nonprofits that receive federal financial assistance will need to provide their UEI number in order to participate in procurement opportunities and receive funding.

How Do I Get A UEI Number?

You can get a Unique Entity Identifier (UEI) number by registering with the System for Award Management (SAM) website. The steps to register for a UEI number are as follows:

Go to the SAM.gov website: Visit the SAM.gov website at https://www.sam.gov/.
Click on the “Register” button: On the SAM.gov homepage, click on the “Register” button to start the registration process.
Complete the registration form: You will be asked to provide information about your business or nonprofit, such as its legal name, physical address, taxpayer identification number, and other relevant details.
Validate your email address: After completing the registration form, you will receive an email with instructions on how to validate your email address. Follow the instructions to complete this step.
Review and submit the registration form: After validating your email address, you will be able to review your registration form and submit it.
Wait for confirmation: After submitting the registration form, you will receive an email confirmation that your registration has been received and is being processed.
Receive your UEI number: After your registration has been processed, you will receive an email with your UEI number and other important information about your entity’s registration with SAM.gov.

It’s important to note that registering with SAM.gov is free of charge, and having a UEI number is a critical component of the federal government’s procurement process. Businesses and nonprofits that receive federal financial assistance will need to provide their UEI number in order to participate in procurement opportunities and receive funding.

Does My Business Need a UEI?

According to the US General Services Administration, the DUNS number is no longer present in searches, views, or extracts in SAM.gov. This doesn’t mean that your business no longer has a DUNS number, just that it is no longer used within the federal government’s Integrated Award Environment (IAE), which manages several systems including SAM.gov, FPDS, eSRS, FSRS, CPARS and FAPIIS.

Whether your business needs a Unique Entity Identifier (UEI) depends on whether it receives federal financial assistance, including grants and contracts, from the United States government.

If your business is registered in the System for Award Management (SAM) and participates in procurement opportunities or receives federal funding, it is required to have a UEI. The UEI is used by the federal government to identify entities and track the distribution of federal funds.

If your business does not receive federal financial assistance, it is not required to have a UEI. However, obtaining a UEI number through SAM.gov registration can be a useful tool for tracking your business’s interactions with the federal government and streamlining your participation in procurement opportunities.

In summary, while having a UEI number is not a requirement for all businesses, it is mandatory for businesses that receive federal financial assistance and can be beneficial for businesses that interact with the federal government in other ways.

Does My Business Still Need a DUNS Number?

The DUNS (Data Universal Numbering System) number is no longer a requirement for businesses that receive federal financial assistance, as it has been replaced by the Unique Entity Identifier (UEI) as the primary identifier for entities in the System for Award Management (SAM).

If your business is already registered in SAM.gov and has a DUNS number, it will still be recognized as a valid identifier, but the UEI is now the preferred identifier for entities in SAM.

If your business does not receive federal financial assistance and does not interact with the federal government, it may not need either a DUNS number or a UEI. However, it is advisable for small businesses to obtain a DUNS number, as it serves as an identifier in the Dun & Bradstreet commercial credit reporting system. If your business does not have one, you can easily request a DUNS number, which stands for Data Universal Numbering System, for free.

In conclusion, if your business is interested in participating in procurement opportunities or receiving federal funding, it will need to obtain a UEI by registering in SAM.gov and while the DUNS number is still recognized as a valid identifier, the UEI is now the preferred identifier for entities in SAM, and is mandatory for businesses that receive federal financial assistance.

Frequently Asked Questions

Where Can I Get Help with My UEI or SAM.gov?

If you need assistance with your Unique Entity Identifier (UEI), or SAM.gov, you can first check the FAQs on SAM.gov related to the UEI transition. If you are still unable to resolve your issue, you can seek help from the Federal Service Desk (FSD.gov) website or reach out to an FSD agent for support during their business hours of 8 AM to 8 PM Eastern Time, Monday through Friday.

Will the government reach out to me through a phone call or email regarding my Unique Entity Identifier (UEI)?

It is unlikely that the government will contact you via phone or email specifically about your Unique Entity Identifier (UEI). The responsibility of obtaining and maintaining a UEI falls on the entity, and any updates or changes to the UEI should be made through the SAM.gov portal. If you have any questions or concerns about your UEI, it is best to reach out to the Federal Service Desk (FSD.gov) for assistance.

Beware of unsolicited calls or emails regarding your Unique Entity Identifier (UEI). Do not disclose personal or business information to these individuals. Instead, log into your SAM.gov account to manage your registration and ensure that your UEI is up to date.

How Do I Update My Business Information?

It is now possible to update the legal name or physical address of your business through SAM.gov, rather than having to go to Dun & Bradstreet as was previously necessary.

Will My UEI Expire?

Your Unique Entity Identifier (UEI) does not have an expiration date. However, it is important to keep your UEI up-to-date by regularly updating any changes to your business information in SAM.gov. This will help to ensure that the information associated with your UEI remains accurate and up-to-date.

Is There a Cost to Get A Unique Entity Identifier (UEI)?

No, there is no cost to obtain a Unique Entity Identifier (UEI). The registration process for a UEI is free and can be completed through SAM.gov. The government uses UEIs to keep track of businesses and organizations registered in the System for Award Management (SAM) database. Obtaining a UEI is a simple process that can be done online, and it helps to ensure that your business information is accurate and up-to-date.

DUNS Number

February 11, 2023Resources0 comment

What is a DUNS Number?

D-U-N-S (Data Universal Numbering System) number is a unique nine-digit identifier assigned by Dun & Bradstreet (D&B), a leading global provider of business information and data analytics. The D-U-N-S number is widely used as a standard identifier for businesses, especially in the United States.

It is often required for government contract bids, obtaining loans, and for business credit reporting purposes. D&B uses information about a business to maintain accurate and comprehensive records for each D-U-N-S number, which helps to ensure the accuracy of information in business transactions and helps to establish the credibility of a business.

How do you use a DUNS number?

A D-U-N-S number can be used in several ways, including:

Government Contract Bids: Many government agencies in the United States require a D-U-N-S number for businesses that wish to participate in government contract bidding.
Business Credit Reporting: Dun & Bradstreet uses the D-U-N-S number to track a business’s credit history and payment behavior, which helps lenders and suppliers make informed decisions about whether to do business with a particular company.
Loan Applications: Lenders may also require a D-U-N-S number when a business applies for a loan. This helps lenders to obtain a complete and accurate picture of the business’s credit history and financial standing.
Business Registrations: Some states and local governments require businesses to obtain a D-U-N-S number as part of the business registration process.
Supply Chain Management: Many companies use D-U-N-S numbers to manage their supply chain and to ensure that their suppliers are credible and reliable.

If you need a D-U-N-S number for your business, you can request one for free from Dun & Bradstreet’s website. The process of obtaining a D-U-N-S number typically involves providing basic information about your business, such as its legal name, physical address, and ownership structure.

Tax-Loss Harvesting: Maximize Your Investment Returns

January 31, 2023Resources0 comment

Tax-loss harvesting is a tax-saving strategy used by investors to offset taxable capital gains by selling investments that have decreased in value and recognizing the loss on their tax return.

Here are the key points to understand about tax-loss harvesting:

Timing: Tax-loss harvesting should be done before the end of the year to take advantage of the tax benefits in the current year.
Capital losses: When you sell an investment at a loss, you can use the loss to offset capital gains from other investments. If you have more losses than gains, you can use up to $3,000 of excess losses to offset other taxable income.
Wash-sale rule: To avoid violating the wash-sale rule, investors cannot repurchase the same or substantially similar security within 30 days before or after the sale.
Portfolio rebalancing: Tax-loss harvesting can also be used to rebalance a portfolio, by selling underperforming investments and buying those that are aligned with the investor’s long-term goals.
Professional advice: Tax-loss harvesting can be a complex process and seeking professional advice from a financial advisor or tax professional can be beneficial.

By implementing tax-loss harvesting, investors can effectively reduce their tax liability and maximize their investment returns. As always, it’s important to consider your own financial situation and consult with a professional before making any investment decisions.

Can Tax Loss Harvesting Improve Your Investing Returns?

Yes, tax-loss harvesting can improve your investing returns. By using this strategy, you can offset taxable capital gains by selling investments that have decreased in value, and recognizing the loss on your tax return. This can effectively lower your tax liability, freeing up more money for investment. Additionally, tax-loss harvesting can also help you rebalance your portfolio, by selling underperforming investments and buying those that align with your long-term goals. However, it’s important to seek professional advice and consider your own financial situation before implementing tax-loss harvesting.

What Is The Best Way To File Business Taxes?

January 30, 2023Resources0 comment

When it comes to filing business taxes, there are several factors to consider to ensure the process is efficient, accurate, and in compliance with tax laws.

Here are some tips to help determine the best way to file your business taxes:

Consider the size and complexity of your business: For smaller, less complex businesses, tax preparation software or manual filing with paper forms may be sufficient. However, for larger or more complex businesses, it may be beneficial to hire a tax professional or accountant who has expertise in tax laws and can help ensure all applicable deductions and credits are claimed.
Stay organized: Keeping accurate and up-to-date records of all financial transactions is essential to ensure a smooth tax filing process. This includes maintaining records of income, expenses, and other financial transactions throughout the year.
Utilize tax preparation software: Tax preparation software can simplify the tax filing process and reduce the risk of errors. These programs typically include features such as calculating tax liabilities, preparing and filing tax forms, and providing guidance on tax laws and regulations.
Understand tax laws and regulations: It is important to have a good understanding of tax laws and regulations that apply to your business, as well as the filing deadlines and requirements. Staying informed of changes to tax laws can help ensure that you are in compliance and avoid any potential penalties or fines.
Consider the cost: Hiring a tax professional or using tax preparation software can be expensive, so it is important to consider the cost and weigh it against the potential benefits, such as reduced risk of errors or increased efficiency.

Ultimately, the best way to file business taxes will depend on the specific needs and circumstances of your business. It is recommended to carefully consider all of the factors and options available to determine the best approach for your business.

#CLADEPOINT #CLADEPOINTBUSINESSSOLUTIONS #CLADEPOINTNETWORK

EDUCATION: Student Loan Forgiveness

January 20, 2023Resources0 comment

In August 2022, President Biden announced plans to forgive up to $20,000 for eligible federal student loans. While student loan forgiveness is great news for your finances, it could affect your credit scores.

If there’s still a balance on your student loan after you receive your student loan forgiveness, you likely won’t see a major change in your credit scores.

However, if the student loan forgiveness pays off one of your loans, you may notice a small drop in your credit scores. This is normal and often happens when an account closes. Most people won’t be affected by this temporary drop, but it’s something to keep in mind if you’re planning to apply for a mortgage or loan soon.

Business Line of Credit

December 28, 2022Resources0 comment

Small Business Line of Credit: How to Choose the Right Option

You may be thinking: “My business is profitable, we don’t need to borrow.” But many businesses with and without cash flow issues keep a line of credit handy for unexpected growth or expansion opportunities. A business credit line is a flexible, often low-cost way, to get short-term financing to cover working capital needs.

What is a Business Line of Credit?

A small business line of credit can help small business owners maintain consistent access to funds to smooth out the ebb and flow of changes in business expenses and revenues.

Rather than receiving a fixed amount of financing like you would with a loan, a line of credit gives you access to a certain amount of money, which you can borrow from, repay, and borrow from again.

How Does a Business Line of Credit Work?

A business line of credit is a flexible loan option for businesses. It may also be referred to as a revolving line of credit . You’re familiar with a line of credit if you use a credit card. It allows you to access funds from your credit line, pay back some or all of it, and access it again. With a line of credit, the business owner decides when, if, and how they will use that borrowed capital.

Interest is typically only charged for the amount of the credit line that is accessed, and interest rates may be fixed or variable. Variable interest rates typically change when interest rates in the economy change. Some lenders charge a draw fee every time you access the credit line.

In addition, there may be an origination fee, annual fee and/or a monthly maintenance fee if you don’t use your line of credit. For any line of credit you consider, you need to carefully read the terms offered to make sure you understand any fees that may be charged.

There will be a specified repayment period, but payments will vary depending on the amount borrowed. With some lines of credit (especially those from traditional banks), there may be a draw period during which you can access funds and make interest-only payments. After that, the business owner may enter a repayment period during which the outstanding balance must be repaid over a specific period of time.

Online lenders, on the other hand, often typically offer short-term lines of credit that fully amortize (or must be paid back) over a shorter time period, often 6-24 months.

Pros and Cons of Business Line of Credit

A line of credit can give you access to capital when you need it, but there are drawbacks to consider as well.

Pros

If you have the opportunity to, for example, expand your business, a line of credit affords you the opportunity to take advantage of it. Likewise, you can get the working capital you need to pay the bills during a slow period.

For many businesses, their financing needs aren’t adequately met with a large lump sum. Let’s say you’re renovating your commercial space. You might need $50,000 now, $7,000 in six months, and another $12,000 next year. A line of credit lets you get the cash you need when you need it rather than paying interest on money you won’t need for a while.

Cons

Just like with any financing, you’ll have to pay it back. If you don’t budget in that monthly payment, you may struggle to pay it, which puts you at risk of defaulting on the loan. If you made a personal guarantee, you’ll also risk your personal assets being seized if you can’t pay the loan.

Depending on what type of financing you qualify for, you may end up paying higher interest rates. If you run a startup that hasn’t been in business for two years or doesn’t have a strong credit profile, you may not qualify for the best terms.

Benefits of a Business Line of Credit

Here are a few examples of scenarios where your business may benefit from a business line of credit:

Your business has seasonal fluctuations—perhaps your sales take a dip in the summer or winter, for example. A line of credit will help during periods of low sales.
Your clients take weeks (or longer) to pay you for products or services you provide. You might need a line of credit to cover business expenses while you wait to get paid.
You land a new client and need extra capital to cover the cost of labor and/or supplies. A line of credit can cover expenses during production.
You have the opportunity to purchase equipment or inventory at a reduced cost. You can cover the bill with your line of credit while you wait for cash flow to catch up.

Depending on the type of loan or line of credit, your creditworthiness may be a major factor in determining eligibility. The higher your credit score, the better the terms you’ll get.

If you’re concerned you won’t get credit approval, look for loans that consider your annual revenues more than credit.

How to Get a Business Line of Credit

You can apply for a line of credit through a bank or credit union, an online lender, a business loan broker, or through an online marketplace where you’ll be able to shop among various lenders. Lenders will most likely evaluate:

Time in business: 2 years or more is ideal but some are more flexible.
Personal credit scores and/or business credit scores: Lender qualifications vary but many require personal credit scores of 600-650, and banks often want even higher scores.
Revenues: These will be verified via bank statements, financial statements, and/or tax returns.

If you do not have a business bank account, you will find it more difficult to qualify. In addition, some lenders will not lend to sole proprietors, so incorporating your business as an LLC, S Corp, or C Corp can be helpful.

When a Business Line of Credit is a Good Idea

Similar to most business financing options, the best time to get a line of credit for your business is when your business has healthy revenue and cash flow, rather than when your business is in a cash flow crunch. You’re more likely to qualify for the best terms when your business is in good financial shape and has no cash flow problems.

Remember: you’re only charged interest on the amount you borrow. If you secure a line of credit now you’re not obliged to use it, but it will be there when your business needs some extra capital.

Pro tip: While a business line of credit can be useful to most business owners, if you are looking for a lump sum of money to fund a one-time project or a long-term project, a small business loan (particularly a term loan) might be a better fit for you than a business line of credit.

Best Business Lines of Credit

You have a wealth of options available to you when it comes to a line of credit. Here are some we recommend.

Fundbox

Fundbox is a popular online lender. Your business must be based in the US and should have been in business for at least 6 months with annual revenues of at least $100,000, a personal FICO score of 600+, and a business checking account. If you qualify, you’ll make weekly payments for 12 or 24 weeks. Interest rates vary.

Get An Employer Identification Number

December 28, 2022Resources0 comment

How to Apply for an Employer Identification Number (EIN) for Free

If you’re a small business owner, or are otherwise self-employed, chances are you’ve heard of an EIN or Employer Identification Number. You may not be clear, however, on exactly what an EIN is, whether you need one, or how to go about getting a free EIN if you do.

There are four ways to apply for an Employer Identification Number (EIN) for free:

Complete the online application for an EIN, or
Fill out form SS-4 and mail it to the IRS,
Fill out form SS-4 and fax it to the IRS,
Call the IRS to request an EIN (international applicants)

An Employer Identification Number (EIN) is a nine-digit number used by the Internal Revenue Service (IRS) to identify a business. You may also hear it referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID number. Think of it as the equivalent of a Social Security number for your business. The IRS requires certain businesses to get an use an EIN for tax purposes.

When does the IRS require an EIN?

The IRS offers a simple checklist you can use to determine whether your business needs an EIN. If you answer “yes” to any of the following questions, you need to apply for an EIN.

Do you have employees?
Do you operate your business as a corporation or a partnership? (Note that an LLC may or may not fall under this category. See below.)
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?

You must also get an EIN if you are involved in any of the following types of organizations:

Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators

Keep in mind that even if the IRS doesn’t require your business to get one, there may be times you need an EIN; for example to open a business bank account or to apply for a small business loan.

Do I need an EIN if I’m self-employed?

Maybe. The IRS considers you self-employed if you operate a business or trade as a sole proprietor or an independent contractor, if you are a member of a partnership that carries on a trade or business or if you are otherwise in business for yourself. (And yes, that can include “side hustles” or “gig work,” even if it’s part-time income.)

If you are self-employed, ask yourself the questions listed above and if you answer “yes” to any of them, you need an EIN.

Do I need an EIN for an LLC?

You may or may not need to get an EIN if your business structure is a Limited Liability Company (LLC). If you answered yes to the questions listed previously, then you will need an EIN. In addition, the IRS provides guidance on whether LLCs need an EIN. It includes the following:

“A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and Taxpayer Identification Number of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account, or if state tax law requires the single-member LLC to have a federal EIN, the LLC can apply for and obtain an EIN.”Source: Internal Revenue Service

Does my business need an EIN?

If you have reviewed IRS guidelines for when you need an EIN and are still unsure, it’s wise to talk with an accounting professional to determine what is required of your business.

In addition to IRS requirements, you may find your business needs an EIN to get a business bank account, to apply for financing, or to apply for a business license.

Does it cost money to get an EIN?

The good news is you can apply for an EIN for free. If you use a law firm or other professional service to incorporate your business, they may take care of this task for you and may or may not charge for that service. Just keep in mind that you applying for an EIN is a simple process for most business owners, and you can do it for free on the IRS website.

How do you apply for an EIN?

The Internal Revenue Service (IRS) requires a completed Form SS-4 to receive an EIN.

As mentioned earlier, there are four ways to get an EIN for free:

1. Complete the online application for an EIN. You can complete the application online on the IRS website at IRS.gov. If you are successful, you will get your EIN immediately. The online system will guide you through the required questions step-by-step but there are a few caveats you should understand before you start.

You must complete the online application in one session; you won’t be able to save it and return later. In addition the online session will expire after 15 minutes of inactivity, and you’ll have to start over, so plan for some uninterrupted time to complete this task. And even though it is an online application, you must complete it during the hours of 7 a.m. to 10 p.m. Eastern Standard Time, Monday to Friday.

It’s a good idea to review form SS-4 before you start the online application so you can gather the information you need to complete the online application.

ImportantIf you are assigned an EIN online, make sure you save the notice verifying that your business has been assigned an EIN and keep it in a safe place.

2. Fill out form SS-4 and mail it to the IRS. If your principal business, office or agency, or legal residence in the case of an individual, is located in one of the 50 states or the District of Columbia, mail it to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. If you have no legal residence, principal place of business, or principal office or agency in any state, mail the completed form to Internal Revenue Service Attn: EIN International Operation Cincinnati, OH 45999. The official processing timeframe for an EIN application received by mail is four weeks, though it may take longer.

3. Fill out form SS-4 and fax it to the IRS at (855) 641-6935 if your business (or residence if you are a sole proprietor) is located in one of the 50 states or the District of Columbia. If you have no legal residence, principal place of business, or principal office or agency in any state, fax the completed form to (855) 215-1627 (within the U.S.) or (304) 707-9471 (outside the U.S.). If approved and you provide a fax number for a response, you should receive your EIN by fax within four business days.

4. Call the IRS to request an EIN (international applicants only) at +1-267-941-1099. Note that it is not a toll-free number so international phone charges may apply, and you must call between 6 a.m. to 11 p.m. (Eastern Time), Monday through Friday. Also note the person making the call must be authorized to receive the EIN and answer questions concerning the application.

Who is the responsible party on the EIN application?

Each application must designate a “responsible party” who must be an individual, not a business entity. The responsible party is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. And importantly, all EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, TIN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. Find more details about responsible parties here.

Note that if the responsible party has requested an EIN online previously, they won’t be able to use that method to request one again and will have to file another way.

Who qualifies for an EIN?

Anyone whose business is located in the United States or a U.S. territory and has an existing valid taxpayer ID, such as a Social Security number, Individual Taxpayer Identification Number or previous EIN, can apply for a new EIN. While new businesses often apply for EINs, it’s also possible that an established business will need to get one if, for example, it hires its first employee.

How long does it take to get an Employer Identification Number?

Filling out the paperwork for your EIN can take 10 minutes or less, if you are prepared. How long it takes to get the number back, however, will depend on how you submit your information. If you submit the information online, you can get your number back immediately. Filling out the SS-4 and mailing it in can take at least 4-5 weeks.

Depending on the needs of your business, it could be in your best interest to file online. This could eliminate the wait between filing and submitting a loan application or anything else for which you need your EIN.

Will my EIN ever change?

There are times when a business may need to apply for a new EIN. Generally, though, a business name change is not one of them.

Sole proprietorships

The IRS will require you to obtain a new EIN if you:

Are subject to a bankruptcy proceeding.
Incorporate.
Take in partners and operate as a partnership.
Purchase or inherit an existing business that you operate as a sole proprietorship.

It will not require you to obtain a new EIN if you:

Change the name of your business.
Change your location and/or add other locations.
Operate multiple businesses.

Corporations

The IRS will require your corporation to obtain a new EIN if:

A corporation receives a new charter from the secretary of state.
You are a subsidiary of a corporation using the parent’s EIN or you become a subsidiary of a corporation.
You change to a partnership or a sole proprietorship.
A new corporation is created after a statutory merger.

The IRS will not require your corporation to obtain a new EIN if any of the following statements are true.

You are a division of a corporation.
The surviving corporation uses the existing EIN after a corporate merger.
A corporation declares bankruptcy.
The corporate name or location changes.
A corporation chooses to be taxed as an S corporation.
Reorganization of a corporation changes only the identity or place.
Conversion at the state level with business structure remaining unchanged.

LLCs

Your LLC will be required to obtain a new EIN if:

A new LLC with more than one owner (Multi-member LLC) is formed under state law.
A new LLC with one owner (Single Member LLC) is formed under state law and chooses to be taxed as a corporation or an S corporation.
A new LLC with one owner (Single Member LLC) is formed under state law, and has an employment or excise tax filing requirement.

Your LLC will not be required to obtain a new EIN if:

The LLC name or location changes.
You report income tax as a branch or division of a corporation or other entity, and the LLC has no employees or excise tax liability.
An existing partnership converts to an LLC classified as a partnership.
An LLC that already has an EIN chooses to be taxed as a corporation or as an S corporation.
A new LLC with one owner (single member LLC) is formed under state law, does not choose to be taxed as a corporation or S corporation, and has no employees or excise tax liability.

NOTE: You may request an EIN for banking or state tax purposes, but an EIN is not required for federal tax purposes.

For full details on when you need (or don’t need) a new EIN, visit IRS.gov.

How Do I Find My Employer Identification Number?

If you’ve already received your EIN and have misplaced it, there are a number of ways to retrieve it.

Look back at your records to see if you have the printed notice from the IRS. If you applied by mail or fax, you will have received the mailed or faxed notice, but if you applied online you will have to rely on the copy you saved online.
Call the IRS Business & Specialty Tax Line at 800-829-4933.
Contact your bank if you opened a bank account under the business name. Banks are required to obtain your EIN before opening the account, so they likely have it on hand.
Review prior tax returns where you used your EIN.

What do I do with my EIN?

Regardless of which application method you use to apply, if you are successful, you’ll receive a Form SS-4 Notice verifying that your business has been assigned an EIN. Be sure to hang onto that notice so you can use it to verify your EIN whenever necessary.

It may be requested when you apply for a variety of business services, including a business license or fictitious name (“doing business as”), or financial products such as business credit cards, small business loans or business bank accounts.

Just as you would never want to use the wrong Social Security number when applying for personal loans, you never want to use the wrong EIN when applying for business loans.

Your EIN may or may not appear on your business credit reports. Each business credit reporting agency assigns a unique number for your business credit file in its system, and for that reason, your EIN is not the main identifier for your business credit reports.

Related: What is a DUNS Number?

Finally, business identity theft is a serious problem. If you believe someone is using your business name or EIN to file tax returns or tax forms, make sure you contact the IRS immediately to file a business identity theft case.