Whether you’ve just registered a brand new trust or you have an existing trust but are yet to apply for an EIN number, continue reading to discover how to get an EIN for a trust. As it’s a federal legal requirement that all trusts must register for a government issued EIN number.
How to get an EIN for a trust: A simple, easy to follow guide
1. Determine what type of trust you’re flying an EIN application for
The form which you’ll need to fill out will ask you whether the trust which you’re filling out an EIN application for is a revocable trust or an irrevocable trust.
A revocable trust is a living trust and is created if you want to have the freedom to make major or minor changes to the trust which you’ve set up. If you’ve chosen to set up a revocable trust, you’ll also have the right to terminate your trust. Whereas if you have chosen to set up an irrevocable trust any of the assets which you place into the trust which you’ve set up will be permanently held by the trust. Which means that you have given up your rights to the assets which you’ve placed into an irrevocable trust
.2. Visit your local tax office or go to the tax department’s website to find an EIN application form
Your next step should be to either visit your local tax office in person in order to pick up an EIN application form for your trust or to go to the tax department’s official website in order to save an EIN application form.
3. Answer all of the questions set out on your EIN application form in full
Make sure to answer all of the questions set out on your EIN application in full. Some examples of information which you’ll need to fill out include the date on which your trust was formally registered and the grantor of your trust’s full social security number.
4. Submit your EIN application form
If you submit your EIN application online or over the phone, you’ll be given an EIN number straight away. Assuming that all of the information which you’ve provided is correct. Make sure to keep a record of your EIN number as you’ll be required to write it down on all of your trust’s taxation related reports.
Why is it mandatory for trusts to register for an EIN number:
If you’re unsure of why you need to apply for an EIN number for your trust, the reason why each trust needs an individual, unique EIN number is that when you file taxation documents on behalf of your trust, government authorities will have to be able to identify your trust. To ensure that your trust continues to abide by taxation regulations. It is important for your money and finances in this case.
So if you assumed that applying for an EIN number for your trust would be a lengthy, tedious process, think again as if you have the right information on hand you should be able to request an EIN number for your trust today.