Applying for an Employer Identification Number (EIN) with the IRS is a crucial step for many businesses. It's like a Social Security Number for your business, essential for tax filings, opening bank accounts, and hiring employees. While the process can seem daunting, it's actually quite straightforward, especially with the right guidance. Let's dive in!
Your Essential Guide to Applying for an EIN with the IRS
Are you starting a new venture, hiring your first employee, or changing your business structure? If so, you're likely going to need an Employer Identification Number (EIN). This unique nine-digit number, assigned by the Internal Revenue Service (IRS), is your business's federal tax ID. Without it, you won't be able to fulfill many essential business functions.
This comprehensive guide will walk you through every step of applying for an EIN with the IRS, ensuring you're well-prepared and confident throughout the process.
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| How To Apply For An Ein With The Irs |
Step 1: Do You Really Need an EIN? Let's Find Out!
Before you jump into the application, it's important to confirm if your business actually requires an EIN. This isn't just a formality; it saves you time and ensures you're compliant with IRS regulations.
So, ask yourself:
- Are you a sole proprietor with employees? If yes, you need an EIN.
- Do you operate as a partnership or a corporation? Both require an EIN.
- Are you forming a multi-member LLC? Absolutely, you'll need one.
- Do you file employment, excise, or alcohol, tobacco, and firearms tax returns? An EIN is mandatory.
- Do you withhold taxes on income, other than wages, paid to a non-resident alien? You'll need an EIN.
- Do you have a Keogh plan? Yes, an EIN is required.
- Are you involved with trusts (except certain grantor trusts), estates, real estate mortgage investment conduits (REMICs), non-profit organizations, farmers' cooperatives, or plan administrators?
All these typically need an EIN. - Are you purchasing or inheriting an existing business that requires a new EIN? This can be a trigger for a new EIN.
Even if not required, many sole proprietors and single-member LLCs choose to get an EIN to separate personal and business finances, enhance credibility, and protect their Social Security Number from potential identity theft. It's a smart move for long-term business health!
QuickTip: Reread for hidden meaning.
If you answered "yes" to any of the above, or simply want the benefits of having an EIN, proceed to Step 2!
Step 2: Gather Your Information – Preparation is Key!
The IRS application process is designed to be completed in one sitting if you're applying online. Having all your necessary information readily available beforehand will make the process smooth and stress-free.
What You'll Need:
- Responsible Party Information: This is the individual who owns or controls the business, or who exercises ultimate effective control over the entity. They must be an individual (not another entity) and must have a valid Taxpayer Identification Number (TIN), such as a Social Security Number (SSN) or an Individual Taxpayer Identification Number
(ITIN). - Full legal name of the responsible party.
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the responsible party.
- Business Legal Name and Address:
- The full legal name of your business, exactly as it is registered (e.g., with your state if applicable).
- Any trade name or "Doing Business As" (DBA) name if different from the legal name.
- The physical street address of your business.
- Your mailing address (if different from the physical address).
- Business Entity Type: You'll need to accurately identify your business structure. Common types include:
- Sole Proprietor
- Partnership
- Corporation (C-Corp or S-Corp)
- Limited Liability Company (LLC) - you'll also need to specify if it's a single-member or multi-member LLC.
- Estate
- Trust
- Non-profit organization
- Reason for Applying: The IRS will ask why you need an EIN. Common reasons include:
- Started a new business
- Hired employees
- Banking purposes
- Changed type of organization
- Purchased active business
- Business Activity Details:
- The principal activity or industry of your business (e.g., manufacturing, retail, healthcare, construction, etc.).
- The date your business started or acquired.
- The closing month of your accounting year.
- Anticipated number of employees (if any) in the next 12 months.
- The first date wages were or will be paid (if hiring employees).
- Answers to tax-related questions (e.g., about alcohol, tobacco, firearms, gambling, highway motor vehicles).
Having all of this information organized will make the actual application process significantly faster and less prone to errors.
Step 3: Choose Your Application Method
The IRS offers several ways to apply for an EIN. The best method for you will depend on your eligibility and how quickly you need the number.
Sub-heading: Option 3A: Apply Online (The Fastest Way!)
This is the preferred and fastest method for most applicants whose principal business, office or agency, or legal residence is located in the U.S. or U.S. territories. You can receive your EIN immediately upon successful completion of the application.
QuickTip: Read line by line if it’s complex.
- Availability: Monday through Friday, 7 a.m. to 10 p.m. Eastern Time.
- Important Note: The online application must be completed in one session, as the system will time out after 15 minutes of inactivity. You cannot save and return to it later.
Step-by-Step Online Application:
- Visit the IRS Website: Go to the official IRS website. Search for "Apply for an EIN online" or navigate to the "Employer ID Numbers (EINs)" section.
- Access the Online Application: Click on the "Apply Online Now" button.
- Review Guidelines: Read the eligibility requirements and guidelines presented on the initial page. Click "Begin Application."
- Select Entity Type: Choose the legal structure that best describes your business (e.g., Sole Proprietor, LLC, Corporation, Partnership). The system will provide brief descriptions to help you.
- Provide Responsible Party Information: Enter the full legal name and SSN/ITIN of the responsible party.
- Enter Business Information: Input your business's legal name, trade name (if applicable), and physical address.
- State Reason for Applying: Select the reason that best fits your situation from the provided list.
- Describe Business Activity: Choose the appropriate primary activity or industry from the categories. If your specific activity isn't listed, you may need to select "Other" and provide a brief description.
- Answer Additional Questions: Respond to questions regarding employees, payroll dates, and any specialized tax activities (alcohol, tobacco, firearms, etc.). Most businesses will answer "No" to these specific industry questions.
- Review and Confirm: Carefully review all the information you've entered. This is your last chance to catch any errors. Incorrect information can lead to delays or issues later.
- Submit Application: Once you're confident everything is correct, submit your application.
- Receive EIN Immediately: Upon successful submission, your EIN will be displayed on the screen. Immediately download, save, or print this confirmation letter. You will not be able to return to this page later. The IRS will also mail a formal confirmation letter to your address within a few weeks.
Sub-heading: Option 3B: Apply by Fax (Faster Than Mail!)
If you prefer not to apply online or are unable to for any reason (e.g., if you are an international applicant without an SSN/ITIN that would allow online application), applying by fax is a viable option. You can typically receive your EIN within four business days.
Step-by-Step Fax Application:
- Download Form SS-4: Go to the IRS website (IRS.gov) and search for "Form SS-4, Application for Employer Identification Number." Download the latest version of the form and its instructions.
- Complete Form SS-4: Fill out the form completely and accurately. Use the instructions as a guide. Pay close attention to all fields, especially those related to your business entity type and reason for applying.
- Sign and Date: Ensure the responsible party signs and dates the form.
- Find the Correct Fax Number: The fax number depends on your business's location. Refer to the "Where To File or Fax" section in the Form SS-4 instructions.
- For applicants within the U.S.: Generally, the fax number is 855-215-1627 or 855-641-6935 (check instructions for the most current number).
- For international applicants: 304-707-9471.
- Fax the Form: Send the completed and signed Form SS-4 to the appropriate fax number. If you provide your fax number on the form, the IRS will fax the EIN back to you.
- Wait for Confirmation: Expect to receive your EIN by fax within approximately four business days.
Sub-heading: Option 3C: Apply by Mail (The Slowest Option)
Applying by mail is the slowest method, typically taking four to five weeks to receive your EIN. This method is generally used if you cannot apply online or by fax, or if you simply prefer a traditional mail approach.
Step-by-Step Mail Application:
- Download Form SS-4: Similar to the fax method, download Form SS-4 and its instructions from IRS.gov.
- Complete Form SS-4: Fill out the form completely and accurately, following the instructions carefully.
- Sign and Date: The responsible party must sign and date the form.
- Find the Correct Mailing Address: The mailing address for Form SS-4 depends on your business's location. Consult the "Where To File or Fax" section in the Form SS-4 instructions.
- A common address for domestic applicants is: INTERNAL REVENUE SERVICE ATTN: EIN OPERATION CINCINNATI, OH 45999
- Mail the Form: Send the completed and signed Form SS-4 via postal mail.
- Wait for Confirmation: You will receive your EIN by mail in approximately four to five weeks.
Sub-heading: Option 3D: Apply by Phone (For International Applicants ONLY)
The IRS no longer issues EINs by telephone for domestic taxpayers. This method is only available for international applicants who do not have a legal residence, principal place of business, or principal office or agency in
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Step-by-Step Phone Application (International ONLY):
- Prepare Information: Have all the information from Step 2 ready. It's helpful to complete Form SS-4 beforehand, even if you're applying by phone, as the IRS representative will ask for the information contained on the form.
- Call the IRS: Call 267-941-1099 (this is not a toll-free number).
- Hours of Operation: Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern Time.
- Speak with a Representative: The person making the call must be authorized to receive the EIN and answer questions about Form SS-4.
- Receive EIN: The IRS representative will assign the EIN over the phone. Make sure to write down the number immediately and accurately.
- Follow-up (if requested): The representative might request you to mail or fax the signed Form SS-4 (including any third-party designee authorization) within 24 hours to an address they provide.
Step 4: What to Do After Receiving Your EIN
Congratulations! Once you have your EIN, you're ready to take the next steps for your business.
- Keep it Safe: Treat your EIN like a Social Security Number for your business. Keep the confirmation letter in a secure place with your other important business documents.
- Open a Business Bank Account: Most banks require an EIN to open a business checking or savings account. This is crucial for separating your personal and business finances.
- Apply for Business Licenses and Permits: Many state and local agencies will require your EIN for various business licenses and permits.
- Set Up Payroll (if applicable): If you're hiring employees, you'll use your EIN for payroll taxes and reporting.
- File Business Tax Returns: Your EIN is essential for filing all federal business tax returns.
- Establish Business Credit: Your EIN will be used to build your business credit profile.
Frequently Asked Questions (FAQs) about EINs
Here are 10 common questions with quick answers to further assist you on your EIN journey:
QuickTip: Pause at transitions — they signal new ideas.
How to Check if I Already Have an EIN?
You can find your EIN on previous tax returns, IRS notices, or by contacting the IRS Business & Specialty Tax Line at 800-829-4933. You can also check your state business registry if your state provides EIN information.
How to Get an EIN if I am a Non-U.S. Resident?
Non-U.S. residents without an SSN or ITIN cannot apply online. You can apply by fax (304-707-9471) or by phone (267-941-1099, not toll-free).
How to Get an EIN for an LLC?
Multi-member LLCs always need an EIN. Single-member LLCs that are "disregarded entities" by the IRS may not strictly require one (they can use the owner's SSN), but it's highly recommended for banking, privacy, and future growth. The application process is the same as described above.
How to Get an EIN for a Sole Proprietorship?
A sole proprietor typically doesn't need an EIN unless they hire employees, file excise tax returns, or want to separate personal and business finances. If needed, the application process is identical to other entity types.
How to Get an EIN for a Corporation?
All corporations (C-Corps and S-Corps) are required to have an EIN. The application process is the same as outlined in the guide.
QuickTip: Keep a notepad handy.
How to Get an EIN for a Partnership?
All partnerships are required to have an EIN. Even if they don't have employees, they need an EIN for filing Form 1065, U.S. Return of Partnership Income.
How to Speed Up My EIN Application?
The fastest way to get an EIN is by applying online, where it's issued immediately. Fax applications are the second fastest, typically taking four business days.
How to Fill Out Form SS-4 Correctly?
Carefully read the instructions for Form SS-4. Pay special attention to the legal name, entity type, responsible party information, and reason for applying. Double-check all numbers and spellings.
How to Know When a New EIN is Needed?
A new EIN is typically needed if there's a change in your business structure (e.g., sole proprietorship converts to an LLC or corporation), you're purchasing an existing business, or there's a change in ownership that impacts the entity's federal tax identity. Simple changes like business name or address do not usually require a new EIN.
How to Contact the IRS for EIN Questions?
For general EIN inquiries, you can call the IRS Business & Specialty Tax Line at 800-829-4933 (domestic) or 267-941-1099 (international, not toll-free). Always have your business information handy when calling.
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