How To Get Ein Number From Irs

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Do you need an Employer Identification Number (EIN) for your business? Maybe you're starting a new venture, hiring employees for the first time, or opening a business bank account. Whatever your reason, getting an EIN from the IRS is a crucial step, and the good news is, it's absolutely free! This comprehensive guide will walk you through every step of the process, ensuring you get your EIN smoothly and efficiently.

The Essential Guide: How to Get an EIN Number from the IRS

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number (TIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. Think of it as a Social Security Number for your business. It's a fundamental requirement for most businesses operating in the U.S., regardless of whether they have employees or not.

Why is an EIN so important? Well, it allows your business to:

File federal tax returns: This is its primary function.
Hire employees: You need an EIN to report employment taxes.
Open a business bank account: Most banks require an EIN to establish a business account.
Apply for business licenses and permits: Many state and local agencies will ask for your EIN.
Establish business credit: Separating your business's financial identity from your personal one.
Fulfill various other legal and financial obligations.

Now, let's dive into the step-by-step process of obtaining your EIN!

Step 1: Are You Ready to Get Your EIN? Let's Find Out!

Before you jump into the application, let's make sure you're properly prepared. This initial check can save you a lot of time and potential headaches down the line.

A. Determine Your Eligibility:

First things first, does your business actually need an EIN? Here are some common scenarios that require an EIN:

You have employees (even household employees).
Your business is structured as a corporation or a partnership.
Your business is an LLC that is taxed as a corporation or partnership. (Single-member LLCs, by default, are typically disregarded entities and might not need an EIN unless they have employees or elect to be taxed as a corporation.)
You file employment tax returns, excise tax returns, or alcohol, tobacco, and firearms tax returns.

You withhold taxes on income, other than wages, paid to a non-resident alien.

You have a Keogh plan.
You are a trust (except certain grantor trusts), estates, real estate mortgage investment conduits (REMICs), non-profit organizations, farmers' cooperatives, or plan administrators.

Important Note: If you are a sole proprietor and you don't have employees and don't meet any of the other criteria, you might not need an EIN. You can often use your Social Security Number (SSN) for tax purposes. However, many sole proprietors choose to get an EIN to keep their business and personal finances more separate.

B. Legally Form Your Entity First:

This is a crucial point that many new business owners overlook. The IRS generally requires your legal entity (LLC, partnership, corporation, etc.) to be legally formed with your state before you apply for an EIN. If you apply before your entity is officially registered, you could face issues or even a denial.

For LLCs and Corporations: Ensure your Articles of Organization (for LLCs) or Articles of Incorporation (for Corporations) have been filed and approved by your state's Secretary of State or equivalent agency.
For Partnerships: Ensure your partnership agreement is in place.

Pro Tip: Don't apply for an EIN until you have confirmed your business entity is legally recognized by your state. The clock for certain IRS compliance requirements can start ticking once your EIN is issued.

Step 2: Gather Your Essential Information – The Form SS-4 Blueprint

The core of your EIN application revolves around Form SS-4, "Application for Employer Identification Number." Even if you apply online, you'll be providing the same information as on this form. Having all the necessary details readily available before you start is key to a smooth process and avoiding frustrating timeouts or rejections.

Here's a detailed breakdown of the information you'll need:

A. Business Information:

Legal Name of Entity (Line 1): This is the exact legal name of your business as registered with your state (e.g., "XYZ LLC" or "ABC Corporation"). If you're a sole proprietor, this will be your personal name.
Trade Name (Doing Business As) (Line 2): If your business operates under a name different from its legal name (e.g., "Happy Coffee Shop" operating under "XYZ LLC"), include that here.
Mailing Address (Lines 3 & 4a-4d): The address where the IRS will send official correspondence.
Street Address/Physical Location (Lines 5a-5b): The actual physical location of your business, if different from the mailing address.
County and State (Line 6): The county and state where your business is located.
Country of Incorporation (Line 9a): If your business is incorporated outside the U.S., specify the country.

B. Responsible Party Information (Line 7a-7b):

The "responsible party" is the individual who controls, manages, or directs the entity and the disposition of its funds and assets. Unless the applicant is a governmental entity, the responsible party must be an individual (a natural person), not another entity.

Name of Responsible Party: Full legal name of the responsible party.
Responsible Party's SSN, ITIN, or EIN:
- If the responsible party is an individual and has a Social Security Number (SSN), provide it.
- If the responsible party is an individual and does not have an SSN but has an Individual Taxpayer Identification Number (ITIN), provide it.
- If the responsible party is an entity (e.g., a foreign government or an international organization) that has an EIN, provide it.
- Important for International Applicants without SSN/ITIN: If the responsible party does not have an SSN or ITIN, and the principal business is outside the U.S., you may indicate "N/A" for the SSN/ITIN field and apply by phone, fax, or mail. The online application typically requires an SSN or ITIN for the responsible party.

C. Business Type and Activity Information:

Type of Entity (Lines 8a & 8b): Select the box that best describes your business structure (e.g., Sole Proprietor, Partnership, Corporation, LLC, Trust, Estate, etc.). If you select LLC, you'll also need to indicate if it has one or multiple members.
Reason for Applying (Line 10): Choose the reason that best fits your situation (e.g., "Started new business," "Hired employees," "Changed type of organization," "Purchased going business," "Created a trust," "Other").
Date Business Started or Acquired (Line 11): The month, day, and year your business began operations or was acquired.
Closing Month of Accounting Year (Line 1): The month your business's fiscal year ends.
Highest Number of Employees Expected in Next 12 Months (Lines 12 & 13): Estimate the number of employees for various categories (agricultural, household, other).
Principal Activity of the Business (Line 17): Briefly describe what your business does (e.g., "Retail clothing sales," "Consulting services," "Restaurant," "Software development").
Primary Product or Service (Line 18): List the primary product or service your business offers.

Double-check everything! Even minor typos or missing information can lead to delays or rejection of your application.

Step 3: Choose Your Application Method – Speed and Convenience

The IRS offers several ways to apply for an EIN. Your choice will largely depend on your location and whether you have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

A. Online Application (Fastest for U.S. Based Entities with SSN/ITIN):

Who can use it: This is the fastest and most efficient method, providing an immediate EIN. However, it's generally available only if the responsible party has a valid SSN or ITIN and the principal place of business, office, or agency is located in the U.S. or U.S. Territories.
Availability: Monday through Friday, 7 a.m. to 10 p.m. Eastern Time.
Process:
1. Go to the official IRS website: www.irs.gov.
2. Search for "Apply for an Employer ID Number (EIN) Online."
3. Click on the "Apply Online Now" link.
4. The application is an interview-style process. You'll answer a series of questions, which are essentially the fields from Form SS-4.
5. Crucial Point: You must complete the application in one session. The system times out after 15 minutes of inactivity and does not save your progress. Have all your information from Step 2 ready!
6. Upon successful submission, your EIN will be issued immediately on the screen. Print or save this confirmation page immediately, as you won't be able to access it again later through the online system. You will also receive an official EIN confirmation letter (CP-575) by mail, usually within a few weeks.

B. Fax Application (Faster than Mail for All Applicants):

Who can use it: Available to all applicants, including international applicants without an SSN or ITIN.
Process:
1. Download Form SS-4: Visit the IRS website and search for "Form SS-4, Application for Employer Identification Number."
2. Fill out the form completely and accurately: Refer to the information you gathered in Step 2.
3. Include a return fax number: If you provide a fax number, the IRS will fax your EIN back to you, usually within four business days.
4. Fax the completed Form SS-4 to the appropriate number:
  - For U.S. entities: Fax to 855-641-6935.
  - For international applicants (principal business outside the U.S.): Fax to 304-707-9471 (outside the U.S.) or 855-215-1627 (within the U.S.).

C. Mail Application (Slowest Method):

Who can use it: Available to all applicants, including international applicants.
Process:
1. Download Form SS-4: As with the fax method, obtain Form SS-4 from the IRS website.
2. Fill out the form completely and accurately: Use the information gathered in Step 2.
3. Mail the completed Form SS-4 to the appropriate address:
  - For U.S. entities: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.
  - For international applicants (principal business outside the U.S.): Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999.
4. Processing Time: This method is the slowest, typically taking about four weeks to receive your EIN by mail.

D. Phone Application (Specifically for International Applicants):

Who can use it: This option is only for international applicants whose principal business, office, or agency is located outside the U.S. or U.S. Territories. The person calling must be authorized to receive the EIN and be able to answer all questions from Form SS-4.
Number to call: 267-941-1099 (This is not a toll-free number, so international call rates will apply).
Availability: Monday through Friday, 6 a.m. to 11 p.m. Eastern Time.
Process: The IRS representative will guide you through the Form SS-4 questions over the phone. If approved, you will receive your EIN immediately during the call. Have a pen and paper ready to write it down!

Step 4: Confirmation and What to Do Next

Congratulations! Once you've successfully completed your EIN application, you'll receive your unique nine-digit number. But your work isn't quite done.

A. Confirm Your EIN:

Online Application: You'll see your EIN immediately on the confirmation screen. Save or print this page for your records.
Phone Application: The IRS representative will provide your EIN during the call. Write it down clearly and store it safely.
Fax Application: If you provided a return fax number, you'll receive a fax with your EIN.
Mail Application: Your EIN will arrive via mail on an official IRS notice (CP-575).

B. Wait for System Updates (if applicable):

While you might receive your EIN instantly online or by phone, the IRS advises waiting up to two weeks for their systems to fully update. This is particularly important if you plan to:

E-file a tax return
Make tax deposits electronically
Pass an IRS Taxpayer Identification Number (TIN) Matching Program (often required by banks for account verification)

During this waiting period, you can still use your EIN for other purposes, such as setting up business bank accounts or filing paper returns.

C. Keep Your EIN Secure and Accessible:

Your EIN is a critical piece of information for your business. Treat it with the same care as your personal SSN.

Store it in a safe place: Keep a digital and/or physical copy of your EIN confirmation letter (Form CP-575).
Do not share it unnecessarily: Only provide your EIN to legitimate parties that require it for business purposes (e.g., banks, payroll providers, government agencies).
Record it in your business records: Note your EIN in your business files for easy reference.

Step 5: What if Your EIN Application Runs into a Snag?

Sometimes, things don't go perfectly. Here are some common issues and what to do if you encounter them:

A. Application Denied or Delayed:

Incomplete or Inaccurate Information: This is the most common reason for delays. Double-check all entries on Form SS-4. A simple misspelling or incorrect number can cause problems.
Entity Not Legally Formed: As mentioned earlier, if your business isn't officially registered with your state, your EIN application might be denied.
Multiple Applications for the Same Entity: Each business entity should only have one EIN. Submitting multiple applications can lead to confusion and delays.
Technical Issues: Occasionally, there might be IRS system outages or errors. If applying online, try again during business hours.
Backlogs: Especially during peak tax season, the IRS can experience backlogs, which can delay mail or fax applications.

B. How to Resolve Issues:

Review Your Application: Carefully go over your submitted information (or the copy of Form SS-4 you filled out) to identify any potential errors.
Contact the IRS: If you're unsure why your application was denied or delayed, or if you need to follow up on a mail/fax application, you can call the IRS Business and Specialty Tax Line at 800-829-4933 (Monday-Friday, 7 a.m. - 7 p.m. ET). For international inquiries, use 267-941-1099.
Resubmit if Necessary: If instructed by the IRS, correct any errors and resubmit your application.

Frequently Asked Questions (FAQs)

Here are 10 common questions about getting an EIN, with quick answers:

How to check if I already have an EIN? You can find your EIN on the notice issued by the IRS when you applied, on past business tax returns, or by checking with your bank if you've opened a business account. If you still can't find it, call the IRS Business and Specialty Tax Line at 800-829-4933.

How to apply for an EIN if I am a non-U.S. resident? Non-U.S. residents typically cannot apply online unless they have an SSN or ITIN for the responsible party and a U.S. address. The best methods are by fax (+1-304-707-9471), mail, or by calling the IRS International EIN line at +1-267-941-1099.

How to fill out Form SS-4 correctly? Refer to the "Step 2: Gather Your Essential Information" section above. Pay close attention to your legal name, business type, reason for applying, and the responsible party's information (including SSN/ITIN if applicable).

How to avoid common mistakes when applying for an EIN? Ensure your business entity is legally formed first, double-check all information for accuracy, select the correct entity type, and avoid applying too early or submitting multiple applications for the same entity.

How to get an EIN for an LLC? If your LLC has employees, is a multi-member LLC, or elects to be taxed as a corporation, you will need an EIN. Follow the general application steps, selecting "Limited Liability Company" as your entity type on Form SS-4.

How to get an EIN for a non-profit organization? Non-profit organizations must obtain an EIN. The process is the same as for other entities; select "Non-profit organization" as your entity type on Form SS-4. Remember to legally form your non-profit before applying for the EIN.

How to find the correct fax number for EIN application? For U.S. entities, the fax number is 855-641-6935. For international applicants whose principal business is outside the U.S., use 304-707-9471 (from outside the U.S.) or 855-215-1627 (from within the U.S.).

How to get an EIN instantly? The fastest way to get an EIN instantly is by applying online through the IRS website, provided your principal business or legal residence is in the U.S. or U.S. territories and the responsible party has a valid SSN or ITIN.

How to get an EIN if I don't have an SSN or ITIN? If you are an international applicant and the responsible party does not have an SSN or ITIN, you cannot use the online application. You must apply by phone (+1-267-941-1099), fax (+1-304-707-9471), or mail Form SS-4.

How to get a new EIN if my business changes structure? Generally, you will need a new EIN if your business structure changes (e.g., a sole proprietorship incorporates, or a partnership converts to an LLC). You typically do not need a new EIN for changes in business name, address, or responsible party. Check the IRS guidelines or consult a tax professional for specific situations.

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