Once You Have Your EIN, When Can You Use It To Make Tax Deposits?

Planning ahead is always a sound business strategy, no matter your industry.  It is so easy to get an LLC Tax ID number that even confirmed procrastinators can establish an LLC in time for this year’s busiest season.  In fact, if you apply for an EIN on the IRS-EIN website, it will send you an email usually within an hour, notifying you of your EIN.

Paying your business taxes, however, is not for procrastinators.  You must file some tax forms annually and others quarterly.  In fact, if you do not make tax deposits periodically throughout the year, you will be faced with a big bill on Tax Day.  It is a good idea to start making tax deposits as soon as you can.  You can start as soon as your EIN is officially registered with the IRS.  But how soon is that?

When Your EIN Becomes Official

When you use the IRS-EIN website to apply for an EIN, you will get your EIN almost immediately.  This email confirmation containing your EIN is sufficient to take some of the preliminary steps associated with starting a business.  For example, many banks will consider the email confirmation letter sufficient to let you open a business bank account.  You can also use it to apply for business insurance.  Some things, however, require an official confirmation letter, sent in hard copy from the IRS.  This letter takes about four weeks to arrive.

When the IRS Acknowledges Your EIN

Until you receive the physical confirmation letter, you cannot be sure that the IRS has accepted your EIN application.  Any dealings with the IRS, including tax deposits, have to wait until you get the physical confirmation letter.

You can begin making tax deposits as soon as you receive an official EIN confirmation from the IRS.

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