As a church organization, you’re both a non-profit organization and an organization that doesn’t have to be taxed. But that doesn’t mean that you don’t need a tax ID (EIN) number. You’ll need a tax ID for licenses, certifications, employees, and to send in your tax returns – as they are still required. Here’s what you need to know.
- Prepare Mandatory Business Information
- Apply for a Church Organization Tax ID (EIN) Number Online
- Apply for a Church Organization Tax ID (EIN) Number via Mail or Fax
- How Do I Obtain a Tax ID (EIN) Number for my Church Organization?
- How Long Does it Take to Obtain a Tax ID (EIN) Number for my Church Organization?
- Why Do I Need a Tax ID (EIN) Number for my Church Organization?
With a company, you would prepare owner information for your organization before getting a Tax ID Number. However, with a non-profit organization like a church organization, you don’t have an owner: you have a board of directors. That means the owner information is actually going to be whoever is the representative of the business.
The representative of the business is going to need to provide their full name, mailing address, social security number, and their role in the business. Often, that should be a critical member of the Board of Directors. This also means it’s ideal to get an EIN Number after forming the organization.
The easiest way to get a Tax ID Number for a church is online. Often, a church may need a Tax ID (EIN) number for documents, such as government information and grants that they need to fill out immediately. If you need a tax ID number for documents immediately, consider getting it online. Getting a tax ID online only takes an hour.
To apply for a Tax ID Number for a church online, you will need: the church’s incorporation documents, the date of incorporation, and basic information about the board of directors and the representative who is applying for the church’s tax ID number. Overall, the process is very simple: you will be able to submit your data online through a tax ID service and you will get the ID returned back to you.
If you don’t want to apply for a tax ID number online, you can also apply for it through mail or fax. Some organizations prefer to do things on paper. You can fill out a form and then either mail it in or fax it in. If you mail it in, the paperwork should be processed within six weeks. If you fax it in, the paperwork should be processed in about five business days.
The downside to mailing it in is that it does take a while, and if there are any questions related to your paperwork the process could take even longer. The downside to faxing it in is that you do need access to a fax machine, and a fax machine will need to be used to return the information, too. If you don’t have a dedicated fax machine available, then this could be difficult.
To get a tax ID number for a church organization, you can use a tax ID service. A tax ID service will tell you all the information that you need to file for a tax ID number, and then you can send that information in for a tax ID. A tax ID service will usually submit your information online, because it’s the fastest way. You can also file for a tax ID number through fax or through mail, if you’re interested in sending in paper documentation, but you may not get your tax ID number for at least six weeks.
It will take only an hour to get a tax ID number for a church organization if you apply for your tax ID number online. If you apply for your tax ID number through the mail, you will need to wait up to six weeks. If you apply for your tax ID number through the fax, you will need to wait up to five days.
It may take longer if there are any issues with your initial application, which can happen if you don’t have your information verified beforehand. You should contact a tax ID service early in the process to make sure you have all the information that you need.
Most church organizations are going to need a tax ID number, whether you’re a non-profit organization or not. If you’re a charitable organization, you may need to file tax returns to verify your status, and if you want to open business accounts or employ employees, you will definitely need to have an EIN. Luckily, it’s an easy process that doesn’t take long.
A church still needs to file tax returns even if they don’t pay taxes. This is partly because in order to qualify for tax-exempt status, the church has to apply for it and maintain their documentation. Not every church is a 503(c), but many are.
But that’s not the only reason that a church needs an EIN. Churches also need EIN because many of them do maintain payroll, which is important. Churches also need an EIN because they need to open business-related bank accounts.
Many churches falsely believe that they don’t need an EIN because they aren’t employers, or because they aren’t a traditional “business.” But there are many advantages to getting business accounts, such as greater levels of service. Nearly every ministry would need to get an EIN number eventually, and getting one early in the process is important. If you don’t get an EIN number now, you may find yourself in a situation when you need it.