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So, you're embarking on the exciting journey of starting a business or perhaps your existing one needs a little tax identity upgrade? Excellent! One of the most fundamental steps you'll need to take in the U.S. is obtaining an Employer Identification Number (EIN) from the IRS. Think of it as your business's Social Security number – a unique nine-digit identifier crucial for various tax-related activities, opening a business bank account, hiring employees, and much more.
Many entrepreneurs feel a bit overwhelmed by the IRS, but I'm here to tell you that getting your EIN is a free and relatively straightforward process. Let's break it down, step by step, so you can confidently secure your business's tax identity!
How to Get Your EIN Number from the IRS: A Comprehensive Guide
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| How Do I Get My Ein Number From The Irs |
Step 1: Are You Ready to Dive In? Confirm Your Eligibility and Need!
Before we even think about clicking buttons or filling forms, let's ensure you actually need an EIN and are prepared to apply.
- Do you need an EIN? Not every business legally requires an EIN. For instance, a sole proprietorship with no employees can often use the owner's Social Security Number (SSN). However, even if not strictly required, it's highly recommended to get an EIN for several reasons:
- Hiring employees: If you plan to hire anyone, an EIN is a must.
- Operating as a corporation or partnership: These legal structures always require an EIN.
- Opening a business bank account: Most banks will require an EIN to open a dedicated business account, which is crucial for separating personal and business finances.
- Filing excise, employment, or alcohol/tobacco/firearms tax returns.
- Withholding taxes on income paid to a non-resident alien.
- Administering certain types of trusts, retirement plans (like a Keogh plan), or estates.
- Protecting your privacy: Using an EIN instead of your SSN on business documents reduces the risk of identity theft.
- Are you the "Responsible Party"? The IRS requires that the person applying for the EIN be the "responsible party." This is generally the individual who owns or controls the entity or has ultimate responsibility for its financial affairs. If you're applying for someone else, you'll need to be an authorized representative with proper documentation (like a Power of Attorney).
- Have you formed your entity? If you're creating a formal legal entity like an LLC, corporation, or partnership, it's essential that you register it with your state before applying for an EIN. This ensures that the name and structure you provide to the IRS match your state registration, preventing potential delays.
Take a moment to consider these points. If you're clear on your need and readiness, let's move on to gathering your intel!
QuickTip: Read step by step, not all at once.
Step 2: Gather Your Arsenal: What Information Do You Need?
Applying for an EIN is essentially an interview process, whether online, by phone, or on paper. Having all your information readily available before you start will make the process incredibly smooth.
- Your Business's Legal Name and Trade Name (if applicable): This should match your state registration documents exactly.
- Your Business Address and Mailing Address: This must be a physical U.S. address (no P.O. Boxes for the physical location).
- Responsible Party Information:
- Full Name: The legal name of the responsible party.
- Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or existing EIN: The responsible party's identification number.
- Type of Entity: You'll need to specify your business structure (e.g., Sole Proprietor, Partnership, LLC, Corporation, Estate, Trust, etc.).
- Reason for Applying: The application will ask why you need an EIN (e.g., Started a new business, Hired employees, Banking purposes, Changed organization type, etc.).
- Date Business Started or Acquired: The month and year your business began operations.
- Principal Business Activity: A description of what your business does (e.g., Retail, Manufacturing, Services, Healthcare, etc.). You'll typically choose from a list of categories.
- Number of Employees: If applicable, the number of employees you currently have or anticipate hiring in the next 12 months.
- Date You Expect to Pay Wages: If you plan to hire employees.
Having these details at your fingertips will save you time and prevent frustration during the application process. Now, let's pick your battlefield!
Step 3: Choose Your Path: Application Methods
The IRS offers several ways to apply for an EIN. The best method for you depends on how quickly you need the EIN and your comfort level with technology.
QuickTip: Keep a notepad handy.
Sub-heading: The Fastest Way: Apply Online (Recommended for U.S. Residents)
This is by far the quickest method, and for most U.S.-based businesses, you'll receive your EIN immediately upon completion.
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- Access the IRS Website: Go directly to the IRS website's EIN application page. A quick search for "IRS EIN application" or visiting
www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-onlinewill get you there. - Availability: The online application is available Monday through Friday, 7:00 a.m. to 10:00 p.m. Eastern Time. Make sure you apply during these hours.
- No Saving Progress: Crucially, the online application cannot be saved. You must complete it in a single session. It will time out after 15 minutes of inactivity, so have all your information ready (from Step 2).
- Click "Apply Online Now": Follow the prompts to begin the application. You'll likely see a series of introductory pages; read them carefully before clicking "Begin Application."
- Answer the Interview Questions: The online system guides you through a series of questions, much like an interview. You'll input the information you gathered in Step 2.
- Be precise: Double-check spelling, numbers, and dates.
- Pay attention to entity type: Selecting the correct business entity is critical as it determines your tax obligations.
- Responsible party details: Ensure the SSN/ITIN of the responsible party is accurate.
- Review and Submit: Before final submission, you'll have an opportunity to review all the information you've entered. This is your last chance to catch any errors!
- Receive Your EIN Instantly: If your application is approved, your EIN will be displayed on the screen immediately. Print this page and save it digitally! This is your official EIN confirmation letter (CP 575).
Sub-heading: The Mid-Speed Option: Apply by Fax
If you can't apply online or prefer a paper trail, faxing Form SS-4 is a viable option.
- Download Form SS-4: Visit the IRS website and search for "Form SS-4, Application for Employer Identification Number," or find the direct link on the EIN page.
- Complete Form SS-4: Fill out the form accurately and completely. Use black ink if printing and filling by hand.
- Include a Fax Number: Be sure to provide a return fax number on your Form SS-4.
- Fax the Form:
- Within the U.S.: Fax to 855-641-6935.
- Outside the U.S.: Fax to 304-707-9471.
- Processing Time: You should receive your EIN by fax within four business days.
Sub-heading: The Slower Lane: Apply by Mail
This is the slowest method and should only be used if you have ample time before needing your EIN.
QuickTip: Read a little, pause, then continue.
- Download and Complete Form SS-4: As with faxing, download and accurately fill out Form SS-4 from the IRS website.
- Mail the Form:
- Within the U.S.: Mail to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.
- Outside the U.S.: Mail to Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999.
- Processing Time: Expect to receive your EIN by mail in approximately four to six weeks.
Sub-heading: The Phone Option: For International Applicants Only
If your principal place of business is outside the U.S., you can apply for an EIN by phone.
- Prepare Form SS-4: Although you're applying by phone, it's highly recommended to complete Form SS-4 beforehand. The IRS representative will ask you questions from the form.
- Call the IRS: Dial 267-941-1099. This is not a toll-free number, so long-distance charges may apply.
- Operating Hours: This line is open Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern Time.
- Be Ready to Verify: The person making the call must be authorized to receive the EIN and answer identity verification questions.
Once you've chosen your method and submitted your application, congratulations! You've taken a massive leap in establishing your business's official presence.
Step 4: What to Do After Receiving Your EIN
Getting your EIN is a foundational step, not the final one. Here's what comes next:
Tip: Remember, the small details add value.
- Secure Your EIN Confirmation: Whether you print it immediately from the online application or receive it by fax/mail, keep your EIN confirmation letter (CP 575) in a safe and accessible place. This is a vital document for your business records.
- Update Business Records: Ensure your EIN is recorded accurately in all your business documents, accounting software, and legal files.
- Open a Business Bank Account: Your EIN is essential for opening a dedicated business bank account, which is crucial for financial separation and professional credibility.
- Understand Your Tax Obligations: Your EIN signifies your business's tax identity. Research and understand your federal and state tax obligations based on your entity type and business activity. This might include income tax, employment taxes, sales tax, and excise taxes.
- File Required Returns: With an EIN, you are now obligated to file any required tax returns or information returns with the IRS.
- Report Beneficial Owners (FinCEN): Be aware that some corporations, LLCs, and other entities may be required to report information on their beneficial owners (the individuals who ultimately own or control the company) to the U.S. Department of the Treasury's Financial Crimes Enforcement
Network (FinCEN). This is a separate requirement from getting your EIN.
Step 5: When You Might Need a New EIN (and When You Don't!)
It's a common misconception that every business change requires a new EIN. This isn't always the case.
Sub-heading: When You DO Need a New EIN:
- You change your business structure (e.g., from a sole proprietorship to a corporation or partnership).
- A sole proprietorship becomes subject to bankruptcy proceedings.
- You purchase or inherit an existing business that you operate as a sole proprietorship.
- A corporation receives a new charter from the state.
- A new corporation is created after a statutory merger.
- Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
- You end an old partnership and begin a new one.
- A trust is created with funds from an estate (not simply a continuation of the estate).
Sub-heading: When You DO NOT Need a New EIN:
- You change the name of your business.
- You change your business location or add other locations.
- A corporation declares bankruptcy.
- A corporation chooses to be taxed as an S corporation.
- The surviving corporation uses the existing EIN after a corporate merger.
- The administrator, personal representative, or executor of an estate changes their name or address.
- The trustee of a trust changes.
- The grantor or beneficiary of a trust changes their name or address.
Always consult the IRS website or a tax professional if you're unsure about whether a new EIN is required for your specific situation.
10 Related FAQ Questions: Your Quick Answers!
How to Retrieve a Lost EIN?
- Look for your confirmation letter (CP 575): This is the notice the IRS sent when you applied.
- Check past tax returns: Your EIN is typically on the top right of your federal business tax returns.
- Contact your bank: If you used your EIN to open a business bank account, they may have it on file.
- Call the IRS Business & Specialty Tax Line: Dial 1-800-829-4933 (Monday-Friday, 7 a.m. - 7 p.m. local time). Be prepared to verify your identity.
How to Find Out If I Already Have an EIN?
- Check previous business tax returns, business loan applications, or business credit reports. If you've previously applied or operated a business that required one, you likely have one. If still unsure, calling the IRS Business & Specialty Tax Line is the best way to confirm.
How to Apply for an EIN if I Live Outside the U.S.?
- If your principal place of business is outside the U.S., you can apply by phone at 267-941-1099 (not toll-free) Monday-Friday, 6 a.m. to 11 p.m. Eastern Time, or by faxing/mailing Form SS-4 to the IRS International Operations.
How to Get an EIN for an LLC?
- You'll apply for an EIN just like any other entity. On Form SS-4 or the online application, you will select "Limited Liability Company (LLC)" as your entity type and indicate if it's a single-member or multi-member LLC.
How to Apply for an EIN for a Non-Profit Organization?
- Non-profit organizations also apply for an EIN using Form SS-4 or the online application, selecting "Other nonprofit organization" as the entity type. Remember, getting an EIN does not automatically grant tax-exempt status; you'll need to apply separately for 501(c)(3) status with the IRS.
How to Get an EIN Without an SSN/ITIN (for Foreign Nationals)?
- Foreign nationals without an SSN or ITIN can generally apply for an EIN by calling the IRS at 267-941-1099 (for international applicants only) or by faxing/mailing Form SS-4. It's often recommended to consult with a tax professional who specializes in international taxation for guidance.
How to Check the Status of My EIN Application?
- If you applied online, you received it immediately. For fax or mail applications, you can call the IRS Business & Specialty Tax Line at 1-800-829-4933 after the typical processing time (4 business days for fax, 4-6 weeks for mail).
How to Change My Business Name with the IRS After Getting an EIN?
- You generally do not need a new EIN when you change your business name. You should notify the IRS of your business name change on your next tax return or by sending a written statement to the IRS.
How to Use My EIN for Business Purposes?
- Your EIN is used for all federal tax filings, opening a business bank account, applying for business licenses and permits, hiring employees, and establishing business credit. It serves as your business's unique tax identification.
How to Avoid Scams When Applying for an EIN?
- Always apply for your EIN directly through the official IRS website or by using IRS forms. The IRS never charges a fee for an EIN. Beware of third-party websites or services that claim to provide EINs for a fee, as you can get it for free directly from the source.
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