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How Are EIN's Assigned?


When you submit your application to the IRS through the IRS-EIN-Tax-ID website, the IRS provides you with a nine-digit number that you can use to run your business.  Social security numbers, which are personal identifiers, are also nine digits, but the two are set up a bit differently. EINs use the format of 12-3456789 while social security numbers use 123-45-6789. What Do the Numbers Mean?

Your EIN number stars with two digits. Until 2001, the first two digits, which are known as the prefix code, referred to the geographical area in which your company would operate. Since 2001, the first two digits now refer to the IRS office that processed the application. The rest of the digits do not have a specific meaning. They are randomly generated and assigned, although the IRS takes measures to ensure no EINs have consecutive numbers.

What About Old Numbers?

Unfortunately, businesses close their doors and stop using their employer identification numbers every day. Even if you never use the EIN again, it is still yours, unless you contact the IRS directly to deactivate your account. In that case, your account is closed, and the number could technically be used by another company. However, the chances of this occurring are very low statistically.

How Do I Apply for an EIN?

Applying for an EIN online is easy. Simply take a few moments to fill out some information about yourself and your company, and then submit the application along with the one-time processing fee. Many applicants receive a response and their number the very same day. If you submit your application after hours, you will receive a response the next business day. Your employer identification number comes directly to your email inbox to make the process as easy for you as possible.

Are you ready to make your business look more professional? Let IRS EIN Tax ID Filing Service help you put your best foot forward. Contact the company today.

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