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Online tax invoice generator for non-profit organizations

welcome to five minute lessons for nonprofits I'm Ben tacis and today we're going to talk about getting a tax ID number also known as Ein or employer identification number for a new nonprofit a few things to know about Ein before you get started the Ein is required to apply for tax exam status and for many other purposes however a nonprofit should not get an until after the entity has been formed that means after the Articles of Incorporation have been filed and certified by your state government another very important reminder this should be a one-time process for your organization you should never apply for another Ein for the same organization unless you consult legal counsel or a qualified tax professional first next I highly recommend having a duly appointed officer of the organization fill out this application and serve as a responsible party that is going to make the this process go a lot more smoothly and it's going to get you access to an official IRS confirmation letter pretty much instantly after you submit the application lastly the easiest and most efficient way to get an EIN is to go right to the IRS website at irs.gov don't make the mistake of clicking on some third party or private company website that may come up when you Google this you want to always go right to the IRS website and here we are on the irs.gov homepage the easiest way to get to the Ein application is to put Ein into the search box so we'll do that and you can see that brings it right up so click there this is just an overview of the steps and whenever you're ready click apply online now and this is a popup with some additional instructions so make sure to read all that and click begin applications when you're done for this first question I like to go to the bottom and click View additional types including tax exempt in governmental organizations for additional types for most 501c3 organizations I'm going to click the last bullet other nonprofit tax exempt organizations obviously if you are a church or homeowners association you'd click one of those but for most new nonprofits this is going to be the right selection this next page just confirms the selection so click continue and for this page why is the organization requesting an EIN the most simple option and the one that I normally use is just started a new business and this page the responsible party as I recommended before you're going to want to have an officer of the organization fill this out so that person's going to need to be prepared to put in their social security number and when they do they're going to click I am a responsible and duly authorized member or officer uh I'm going to put in my information for these illustration purposes but obviously I'm going to cut away for privacy reasons for this page where is the organization physically located you're going to need some kind of physical street address like a business address home address or a virtual office address but note that the IRS doesn't want a PO Box for this I'm going to enter my office address and phone number here for illustration purposes but again I will cut away from that for privacy reasons and on the next page there will be a confirmation and you'll normally want to accept their database version to make it easier on this page you're going to need to enter the legal formal name of the organization as shown on the Articles of Incorporation but note that for some reason this page does not accept periods or commas so remove any of that but otherwise should be the formal name and for our purposes I'm going to put in a hypothetical organization name this organization does not exist and I'm not going to submit this application because I don't want to do anything for fraudulent but to show you how this works that is the hypothetical name I entered and for start date you want to put the date that the Articles of Incorporation were filed and certified by your state government on this page where it says tell us more about the organization for most new nonprofit 501c3 organizations I click no to all of these questions but obviously you should make sure that that is accurate this last question about whether you have employees that definitely might vary depending on the organization but for small organizations the answer is typically no for this page what does your business or organization do you could see a variety of options Health Care social assistance but for most organizations I like to click other which will give you more options on this next page generally the right option is going to be organizations such as religious environmental Etc and again here are some options and for most organ organizations I end up clicking other and this asks for a very short description and I'm going to put in Education and Training for this hypothetical organization now we're almost at the end you always want to click the first box that will make the letter appear instantly otherwise you're going to be waiting a while to receive it and this is the last page giving you a summary and asking you to confirm the information that you entered I'm going to black out some of this scrolling to the bottom you can see the answers to the rest and when you're ready you click submit then it's going to happen very quickly and generate a final page that unfortunately I can't show you here what I can show you is an example of the official IRS letter confirming your EIN this is just a portion of it and I've redacted the organization's information but what you get will look very much like this that should do it for today in this lesson I've walked you through the process of getting an EIN for your organization and for most new nonprofits the next step is to open a bank account for more information about that process click on the link on the screen thanks for watching see you next time