Thinking about starting a business, or perhaps you've already taken the plunge and realized you need an Employer Identification Number (EIN)? It's a crucial step for many businesses in the U.S., acting as your business's social security number for tax purposes. But a common question that pops up is: How long does it really take to get an EIN from the IRS? Let's dive deep into this, exploring each method of application and what you can expect in terms of processing times.
Understanding the EIN: Your Business's Tax ID
Before we get into the "how long," let's quickly understand what an EIN is. An Employer Identification Number (EIN), also known as a Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify
- Hiring employees: If you plan to have employees, an EIN is mandatory for payroll taxes.
- Opening a business bank account: Most banks require an EIN to open a dedicated business account.
- Filing business tax returns: You'll use your EIN when filing federal and often state tax returns for your business.
- Applying for business licenses and permits: Many licensing bodies require an EIN.
- Establishing business credit: An EIN helps in building a credit history separate from your personal credit.
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| How Long Does It Take To Get An Ein Number From The Irs |
Step 1: Are You Ready to Get Your EIN?
Hold on a minute! Before you even think about applying, let's make sure you're properly prepared. This isn't a race; it's about getting it right the first time to avoid unnecessary delays.
Sub-heading: Gathering Your Essential Information
The IRS application, Form SS-4 (Application for Employer Identification Number), requires specific information. Having this ready before you start will make the process much smoother. You'll generally need:
- Legal name of your entity: This should match your legal formation documents (e.g., Articles of Incorporation, Articles of Organization).
- Trade name (if different from legal name): Also known as doing business as (DBA).
- Mailing address and physical location: Where your business is physically located and where you want the IRS to send mail.
- Responsible Party information: This is the individual who controls, manages, or directs the applicant entity and the disposition of its funds and assets. For most businesses, this will be the owner, a general partner, or a principal officer. You'll need their name and a valid U.S. Taxpayer Identification Number (SSN, ITIN, or existing EIN). Note: For online applications, the responsible party must have a valid U.S. SSN or ITIN.
- Type of entity: (e.g., Sole Proprietor, Partnership, Corporation, LLC, Estate, Trust, etc.).
- Reason for applying: (e.g., Started new business, hired employees, banking purposes).
- Date business started or acquired.
- Closing month of your accounting year.
- Highest number of employees expected in the next 12 months (if applicable).
- Principal business activity.
Step 2: Choosing Your Application Method (and Understanding the Timeline)
The processing time for your EIN application heavily depends on the method you choose. Let's break down each option:
Sub-heading: Method A: The Instant Gratification - Online Application
QuickTip: Slow down when you hit numbers or data.
This is by far the fastest and most popular method for most eligible applicants.
- Who can use it? If your principal business or legal residence is located in the U.S. or its territories, and the responsible party has a valid SSN or ITIN, you are likely eligible. You can generally only apply for one EIN per responsible party per day.
- How it works: You'll use the IRS's "Online EIN Assistant." It's an interview-style application process that guides you through the necessary questions.
- Processing Time: Immediate! As soon as you successfully submit your application with all correct information, your EIN is issued on the spot. You'll receive a confirmation screen with your new EIN, which you should save or print immediately as it won't be available for download later.
- Important Considerations:
- You must complete the application in one session. The system times out after 15 minutes of inactivity and does not save your progress.
- The online application is available Monday through Friday, 7:00 a.m. to 10:00 p.m. ET.
Sub-heading: Method B: The Speedy Alternative - Fax Application
If you can't apply online or prefer a paper-based method that's still relatively quick, faxing is a good option.
- Who can use it? Anyone can use this method. It's often used by those who don't qualify for the online application (e.g., international applicants without a U.S. presence or SSN/ITIN).
- How it works: You'll need to complete Form SS-4, fill it out accurately, and then fax it to the appropriate IRS fax number. Be sure to include a return fax number for them to send your EIN back to you.
- Processing Time: Typically four business days. However, it can sometimes take a bit longer, especially if you don't include a return fax number, which may then lead to the EIN being mailed to you.
- Important Considerations:
- Ensure all information on Form SS-4 is accurate and legible. Errors can cause significant delays.
- Keep a copy of the faxed form and the transmission confirmation for your records.
Sub-heading: Method C: The Traditional Route - Mail Application
This is the slowest method for obtaining an EIN.
- Who can use it? Anyone can use this method, but it's particularly suitable for complex business structures or international applicants who prefer written correspondence and aren't in a rush.
- How it works: You'll complete Form SS-4 and mail it to the IRS. The mailing address varies based on your business's location or if you are an international applicant. Always check the Form SS-4 instructions for the correct address.
- Processing Time: Generally four to five weeks. This can be longer during peak tax seasons or if there are any issues with your application.
- Important Considerations:
- Patience is key with this method. Don't expect a quick turnaround.
- Double-check everything before mailing to avoid further delays due to errors.
Sub-heading: Method D: For International Applicants - Phone Application
This method is specifically designed for applicants who do not have a legal residence, principal place of business, or principal office or agency in the U.S. or its territories.
Tip: Avoid distractions — stay in the post.
- Who can use it? International applicants without a U.S. presence.
- How it works: You'll call the IRS at +1-267-941-1099 (this is not a toll-free number, so international call rates will apply). An IRS representative will help you complete Form SS-4 over the phone. You'll need to be prepared to answer all questions from the form.
- Processing Time: Immediate – you'll usually receive your EIN during the call.
- Important Considerations:
- The service hours for this line are typically Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern Time.
- You should have all the information from Form SS-4 readily available before you call to ensure a smooth process.
- The person calling must be authorized to receive the EIN (e.g., the responsible party or a third-party designee with a completed Third-Party Designee section of Form SS-4).
Step 3: After You've Applied – What to Expect
Once you've submitted your application, the waiting game (if any) begins.
Sub-heading: Confirmation of Your EIN
- Online and Phone Applications: You'll receive your EIN immediately. For phone applications, you should write it down. For online, print or save the confirmation page. The IRS will also mail a formal confirmation letter (Notice CP 575) to your business address within a few weeks, which is important to keep for your records.
- Fax Applications: If you provided a return fax number, you should receive a fax with your EIN within about four business days. A mailed confirmation letter will follow.
- Mail Applications: You'll receive your EIN confirmation letter by mail within four to five weeks.
Sub-heading: Potential Delays and How to Avoid Them
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While the IRS strives for efficiency, certain factors can slow down the process:
- Inaccurate or Incomplete Information: This is the number one cause of delays, especially for fax and mail applications. Double-check all spellings, numbers, and required fields on Form SS-4.
- Technical Issues: Though rare, online system outages or errors can occur.
- High Application Volume: During peak tax season (January to April), all application methods may experience slightly longer processing times.
- International Applications: Mail-based applications from outside the U.S. can take longer due to postal service delays.
- Duplicate Applications: If you apply multiple times for the same entity because you haven't received it, it can actually complicate and delay the process further.
- Applying for an EIN When You Already Have One: Most business changes (like a name change or a change of address) do not require a new EIN. Make sure you truly need a new one before applying.
Step 4: Using Your New EIN
Once you have your EIN, you can immediately start using it for most business purposes, such as:
- Opening a business bank account.
- Applying for necessary business licenses and permits.
- Setting up payroll if you have employees.
- Preparing for future tax filings.
Note: While your EIN is immediately issued for online and phone applications, the IRS generally advises waiting up to two weeks before you can file an electronic return, make electronic deposits, or pass an IRS Taxpayer Identification Number (TIN) matching program.
Tip: Read aloud to improve understanding.
Step 5: Checking the Status of Your EIN Application (If Needed)
If you've applied by mail or fax and the expected processing time has passed, or you haven't received your confirmation letter, you might want to check the status.
- How to check: The only way to check the status of your EIN application directly with the IRS is by calling the IRS Business & Specialty Tax Line at 1-800-829-4933.
- When to call: Call during their business hours (typically Monday through Friday, 7:00 a.m. to 7:00 p.m. local time). Be prepared for potential wait times, especially during busy periods.
- What to have ready: You'll need to verify your identity and provide information from your Form SS-4, such as your business name, address, responsible party's name and SSN/ITIN, type of entity, and the date you applied.
Conclusion: Plan Ahead for a Smooth EIN Process
In summary, the time it takes to get an EIN from the IRS varies significantly based on your application method.
- Online: Immediately
- Phone (International Applicants): Immediately (during the call)
- Fax: Approximately 4 business days
- Mail: Approximately 4 to 5 weeks
The best way to get your EIN quickly and efficiently is to apply online if you're eligible. Otherwise, faxing is your next quickest option. Always ensure your Form SS-4 is complete and accurate to avoid any unnecessary delays. Planning ahead and having all your information ready will make the process as seamless as possible!
Frequently Asked Questions (FAQs)
How to get an EIN online immediately? To get an EIN online immediately, visit the IRS EIN Assistant website, ensure your principal business is in the U.S. or its territories, and the responsible party has a valid SSN or ITIN. Be prepared to complete the application in one session as it times out after 15 minutes of inactivity.
How to apply for an EIN if I am an international applicant without a U.S. SSN/ITIN? International applicants without a U.S. SSN or ITIN can apply for an EIN by phone by calling +1-267-941-1099 during IRS business hours (6:00 a.m. to 11:00 p.m. ET, Monday-Friday). You can also apply by fax or mail using Form SS-4, but these methods take longer.
How to check the status of my EIN application? You can check the status of your EIN application by calling the IRS Business & Specialty Tax Line at 1-800-829-4933. Have your business information and details from your Form SS-4 ready for verification.
How to get a new EIN if my business changes its name or address? Generally, you do not need a new EIN if your business simply changes its name or address. You only need to update the IRS with your new information. A new EIN is typically required only when the legal structure or ownership of the business changes significantly (e.g., a sole proprietorship incorporates).
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How to avoid delays when applying for an EIN? To avoid delays, ensure all information on your Form SS-4 is accurate and complete. If applying online, complete the session in one go. For fax or mail, double-check all fields and include a clear return fax number or mailing address.
How to fill out Form SS-4 correctly? Carefully review the instructions provided with Form SS-4 on the IRS website. Ensure all required fields are filled, including your business name, address, responsible party's information, entity type, and reason for applying. Use black ink and clear handwriting if filling it out manually.
How to find my existing EIN if I've forgotten it? You can find your existing EIN on previous tax returns, IRS correspondence, or by contacting the IRS Business & Specialty Tax Line at 1-800-829-4933.
How to get an EIN for an LLC? The process for getting an EIN for an LLC is the same as for other business entities. You can apply online, by fax, mail, or phone (for international applicants). Select "LLC" as your entity type on Form SS-4.
How to get an EIN if I'm a sole proprietor without employees? While not always legally required, many sole proprietors choose to get an EIN even without employees for banking purposes or to separate personal and business finances. You can apply using any of the methods described above.
How to know if I need an EIN for my business? You generally need an EIN if you have employees, operate as a corporation or partnership, file excise taxes, or withhold taxes on income paid to a non-resident alien. Even if not required, it's often beneficial for opening a business bank account or applying for loans.
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