IRS Form SS-4 (EIN Application) Guide - Alliance for Contractors

IRS Form SS-4 (EIN Application) Guide

Alliance for Contractors - Build Your Business Foundation

Form Overview and Purpose

The IRS Form SS-4 (Application for Employer Identification Number) is your gateway to establishing your contracting business as a legitimate entity in the eyes of the federal government. An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is required for:

  • Opening business bank accounts
  • Filing business tax returns
  • Hiring employees or subcontractors
  • Applying for business licenses and permits
  • Setting up business credit accounts
  • Integrating with BuildSuite™ accounting systems
Alliance BuildSuite™ Integration: Your EIN will automatically populate in your BuildSuite™ accounting setup once obtained, streamlining your financial management and tax preparation processes.

Business Structure Options for Contractors

Structure Type Best For Tax Treatment Liability Protection
Sole Proprietorship Single owner, simple operations Personal tax return No protection
Single-Member LLC Solo contractors seeking protection Personal tax return Limited liability
Multi-Member LLC Partnerships, multiple owners Partnership tax return Limited liability
S Corporation Growing businesses, employee benefits Separate tax return Full protection
C Corporation Large operations, investors Separate tax return Full protection

Step-by-Step Form SS-4 Instructions

Section 1: Basic Business Information

Line 1: Legal name of entity

Enter the exact legal name as filed with your state. For LLCs, include "LLC" in the name.

Example: "Johnson Construction LLC" or "ABC Electrical Services, Inc."
Line 2: Trade name of business (if different)

The name you use for marketing and operations if different from legal name.

Example: Legal name "Johnson Construction LLC", Trade name "Johnson Quality Builders"
Line 3: Executor, administrator, trustee, "care of" name

Usually left blank for most contracting businesses unless applying for an estate or trust.

Lines 4a-4b: Mailing address

Your business mailing address. Can be your home address for home-based contractors.

Alliance Integration: This address will sync with your Alliance membership profile for consistent business records.
Lines 5a-5b: Street address (if different from mailing)

Physical location of your business operations, if different from mailing address.

Line 6: County and state where principal business is located

Important for state tax obligations and licensing requirements.

Line 7a-7b: Name and SSN of responsible party

The person who controls, manages, or directs the entity. Usually the owner or managing member.

Privacy Note: This information becomes part of IRS records. Ensure accuracy.

Section 2: Business Structure and Classification

Line 8a: Check the box that best describes your entity
  • Sole proprietorship: Single owner, no formal entity filing
  • LLC: Limited Liability Company filed with state
  • Corporation: Incorporated with state (C-Corp default)
  • Partnership: Multiple owners, partnership agreement
  • Other: S-Corp election, non-profit, etc.
Line 8b: If LLC, enter number of members

Single-member LLC = 1, Multi-member LLC = actual number of owners

Line 8c: If corporation, provide state and date of incorporation

Must match your Articles of Incorporation filing with your state.

Line 9a: Check the reason for applying

Most contractors will check "Started new business" for initial applications.

Line 9b: Date business started or acquired

The date you began operations or plan to begin operations.

Line 10: Closing month of accounting year

Most contractors use December (calendar year). Consult your accountant for fiscal year considerations.

BuildSuite™ Integration: Your accounting year selection will configure your BuildSuite™ reporting calendar automatically.

Section 3: Business Activity and Employment

Line 11: Highest number of employees expected in the next 12 months

Include yourself if taking a salary. Include all employees, not just full-time.

Examples for contractors: 0 (sole proprietor), 1-5 (small crew), 6-20 (medium operation)
Line 12: First date wages or annuities were paid or will be paid

If you have no employees, enter "N/A". Otherwise, enter the first payroll date.

Line 13: Principal activity

Describe your main contracting activity in specific terms.

Examples: "Residential construction", "Commercial electrical work", "HVAC installation and repair", "General contracting"
Line 14: Specific principal business activity

More detailed description of your services.

Examples: "New home construction and remodeling", "Commercial building electrical systems", "Residential and commercial plumbing services"
Line 15: Check the box that best describes your principal business activity

Most contractors will check "Construction" or "Other" depending on specialization.

Section 4: Additional Information

Line 16: Do you expect to have more than 1,000 employees in the next 12 months?

Most contractors will check "No".

Line 17: Check the appropriate reason for applying

Common reasons for contractors:

  • Banking purpose (to open business account)
  • Started new business
  • Hired employees
  • Created a pension plan
Line 18: Check if you want to elect S Corporation status

Consult with your accountant. This election has significant tax implications.

Important: S-Corp election affects how you're taxed and requires additional filings.

Required Supporting Documentation

Documentation Checklist:

  • Articles of Incorporation (if corporation)
  • Articles of Organization (if LLC)
  • Operating Agreement (if LLC with multiple members)
  • Partnership Agreement (if partnership)
  • Social Security card or ITIN for responsible party
  • Driver's license or state ID for responsible party
  • Business license (if already obtained)
  • Contractor's license (if required in your state)

Submission Methods and Timeline

Application Methods:

  1. Online (Fastest): Apply at IRS.gov - typically processed within 1-2 business days
  2. Fax: 855-641-6935 - processed within 4-5 business days
  3. Mail: Send to appropriate IRS address based on your state - takes 4-8 weeks
  4. Telephone: 800-829-4933 - available for certain applicants

Processing Timeline:

Method Processing Time Best For
Online 1-2 business days Most contractors - fastest option
Fax 4-5 business days When online system is unavailable
Mail 4-8 weeks Complex situations requiring documentation
Telephone Same day Urgent situations, limited availability

Post-Approval Next Steps

Alliance BuildSuite™ Integration: Once you receive your EIN, log into your Alliance membership portal to update your business profile. Your EIN will automatically sync with BuildSuite™ for seamless accounting integration.

Immediate Actions After Receiving Your EIN:

  1. Update Alliance Profile: Add your EIN to your Alliance membership profile
  2. Open Business Bank Account: Use your EIN to establish business banking
  3. Apply for Business Credit: Begin building business credit history
  4. Obtain Required Licenses: Apply for contractor licenses using your EIN
  5. Set Up Accounting: Configure BuildSuite™ with your new EIN
  6. Register for State Taxes: Register with your state tax agency if required
  7. Obtain Business Insurance: Apply for general liability and workers' compensation
  8. Set Up Payroll System: If you have or plan to have employees

Ongoing Compliance Requirements:

  • File annual tax returns (Form 1120, 1120S, or 1065 depending on entity type)
  • Make quarterly estimated tax payments if required
  • File employment tax returns if you have employees
  • Maintain corporate formalities (meetings, resolutions) for corporations
  • Update business registrations as needed

Troubleshooting Common Issues

Application Rejected or Delayed:

Common Rejection Reasons:
  • Incomplete or illegible form
  • Entity name already in use
  • Mismatch between entity type and supporting documents
  • Invalid responsible party information

Solutions for Common Problems:

Problem: Entity name rejected

Solution: Check with your state's business registry for name availability. Consider adding "LLC", "Inc.", or other distinguishing terms.

Problem: Can't complete online application

Solution: Try fax or mail submission. Some entity types or situations require paper filing.

Problem: Lost EIN notification

Solution: Call the IRS Business & Specialty Tax Line at 800-829-4933. Have your business information ready for verification.

Problem: Need to change business structure after EIN issued

Solution: Depending on the change, you may need a new EIN. Consult with your accountant or tax professional.

Getting Help:

  • IRS Business & Specialty Tax Line: 800-829-4933
  • Alliance Member Support: Contact through your membership portal
  • BuildSuite™ Technical Support: Available 24/7 for integration assistance
  • Professional Tax Advisor: Recommended for complex situations
Alliance Advantage: As an Alliance member, you have access to our business development specialists who can guide you through the EIN application process and help ensure your business foundation is properly established for growth and success in the contracting industry.

Final Reminders

  • Keep multiple copies of your EIN letter in secure locations
  • Memorize or securely store your EIN - you'll use it frequently
  • Never share your EIN publicly or with unauthorized parties
  • Update your Alliance profile immediately upon receiving your EIN
  • Set up BuildSuite™ accounting integration within 30 days
  • Consult with tax professionals for complex business structures
  • Review your business structure annually to ensure it still meets your needs

This guide is provided as part of your Alliance for Contractors membership benefits. For personalized assistance with your EIN application or business setup, contact Alliance Member Support through your membership portal.