What is a Third Party Designee for EIN & Tax ID Application?
Third Party Designee for an Employer Identification Number (EIN) (Tax ID) SS-4 form application is a person located in United States authorized to receive the applicant’s EIN and answer questions to the completion of the EIN application.
The Third Party Designee represents the applicant in applying and processing the applicant’s EIN application from the filing process until the completion when the applicant receives his or her EIN.
If you do NOT have a U.S. Social Security Number (SSN) or Individual Tax Identification Number (ITIN) to apply for an EIN, it is strongly recommended to have a business lawyer act as your Third Party Designee to apply for your EIN on your behalf.
The Third Party Designee’s authority terminates at the time the Employer Identification Number (EIN) is assigned by the Internal Revenue Service (IRS) and released to the applicant.
Further, the Third Party Designee must complete the signature area of the authorization on the EIN Application as the picture shown below to be valid.
What Responsibilities Does a Third Party Designee Have?
A business lawyer designated as the Third Party Designee for your EIN application will correctly fill out your EIN application.
Authorized Third Party Designee located in United States can receive an EIN and give it to the applicant to immediately use it to start a business in United States, open up a U.S. bank account, apply for permits and licenses, and comply with IRS regulations.
Once the Third Party Designee processes your EIN application with the IRS, the Third Party Designee receives the Employer Identification Number (EIN) (Tax ID), and can answer questions about the application on behalf of the applicant if there are any problems.
Further, the Third Party Designee has an obligation to keep a completed signed copy of the EIN application and signed authorized statement for each application filed with the IRS.
In short, the Third Party Designee represents you before the IRS while applying for your EIN or Tax ID.
However, keep in mind that the Third Party Designee’s authority and responsibility ends as soon the EIN is received by the applicant.
How to Apply for an Employer Identification Number (EIN) (Tax ID)?
If you have a U.S. Social Security Number, you may apply for your EIN (Tax ID) using IRS website here.
However, if you do NOT have a U.S. Social Security Number (SSN) or Individual Tax Identification Number (ITIN), you should take the following steps:
- Have a business lawyer act as your Third Party Designee to apply for your EIN
- The Third Party Designee will prepare EIN Application Form SS-4 on your behalf
- The Third Party Designee will receive your EIN from the IRS on your behalf and send it to you
To guarantee that you receive your EIN correctly and on time, it is highly recommended to have a business lawyer act as your Third-party designee apply for your EIN on your behalf.