EIN...Another set of letters that represents very important numbers!

Business Basics
Written By Nicole Ring

NPI, PTAN, EIN ….Oh my, another number.  Acronyms get so confusing.  NPI- National Provider Identification Number.   PTAN (Medicare Provider Transaction Access Number) and below EIN-Employer Identification Number.

An EIN is an Employer Identification Number issued by the IRS.  EINs are issued for the purpose of tax administration. Individuals who are sole proprietors can apply for an Employer Identification Number (EIN).
Entities such as partnerships, LLC, S corporations, etc. also apply for EINs. The rules differ.  The EIN protects
your social security number from being disclosed on:

  • Forms such as 1099

  • Claims

  • Health Plans

  • Business Licenses

EIN is needed to complete most application forms. The EIN assigned to you as an individual will differ from any group or business entity/(in)corporation you may form.  When building a business entity as a sole proprietor or corporation, you will want to consult accounting and legal professionals for what best suits your current and future needs. 

For group private practice, partnership or corporations, applying for an EIN takes place AFTER the entity is formed.  The guidance from your legal and tax professionals is recommended.
 Applying for an EIN online, you will need:

  • to be prepared to complete the application in one session, as you will not be able to save and return at a later time. 

  • a valid Taxpayer Identification Number (SSN social security number, ITIN a tax processing number only available to individuals who cannot get a social security number (SSN)).

  • permanent address 

  • to be aware your session will expire after 15 minutes of inactivity, and you will need to start over.

  • to use your name or business name (remember IRS has alphanumeric rules…symbols are limited to those stated here:  https://www.irs.gov/businesses/small-businesses-self-employed/online-ein-frequently-asked-questions

After all validations are done you will get your EIN immediately upon completion. You can then

  • download

  • save

  • print your EIN confirmation notice.

Source:    https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

The information is for reference use only and does not constitute the rendering of legal, financial, or other professional advice.

Nicole Ring
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