An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS)
If you're starting a new business, changing your business structure, or planning to hire employees, obtaining an EIN is likely a necessary step. While the process can seem a bit daunting, the IRS has made it relatively straightforward, especially with their online application. This comprehensive guide will walk you through every step of obtaining your EIN letter from the IRS, ensuring you're well-equipped to navigate the process with confidence.
A Comprehensive Guide: How to Obtain Your EIN Letter from the IRS
Ready to get your business officially recognized by the IRS? Let's dive in!
 |
| How To Obtain Ein Letter From Irs |
Step 1: Determine Your Business's EIN Needs and Eligibility
Before you even think about filling out a form, let's figure out if you actually need an EIN and which method of application is best for you. This crucial first step can save you time and hassle down the road.
Tip: Reflect on what you just read.
Sub-heading: Do You Really Need an EIN?
While many businesses require an EIN, not all do. Here's a quick rundown of common scenarios where an EIN is required:
- You have employees. This is perhaps the most common reason. If you plan to hire anyone, even just one person, you'll need an EIN to report their wages and withhold taxes.
- Your business is structured as a corporation or partnership. Regardless of whether you have employees, these entity types always need an EIN.
- Your business is a multi-member LLC. If your LLC has more than one member, it's generally treated as a partnership for tax purposes and requires an EIN.
- You file excise taxes. Businesses dealing with certain goods or services (e.g., alcohol, tobacco, firearms) may need an EIN to file excise tax returns.
- You withhold taxes on income, other than wages, paid to a non-resident alien.
- You have a Keogh plan (a tax-deferred pension plan for self-employed individuals).
- You are involved with trusts (except certain grantor-owned revocable trusts), IRAs, exempt organization business income taxes, or Farmers' cooperatives.
- You purchase or inherit an existing business that already has an EIN and you are changing the business structure or ownership.
Sub-heading: When Can You Possibly Use Your SSN Instead?
If you're a sole proprietorship with no employees and you don't fall into any of the other categories above, you might be able to use your Social Security Number (SSN) for tax purposes. However, even in these cases, many sole proprietors choose to get an EIN for several compelling reasons:
- Professionalism and Credibility: An EIN can make your business appear more established and legitimate, especially when dealing with banks, suppliers, or clients.
- Separation of Personal and Business Finances: Using an EIN helps create a clear distinction between your personal and business financial activities, which is vital for bookkeeping and liability.
- Protection Against Identity Theft: Using your EIN instead of your SSN for business transactions reduces the risk of your personal information being exposed.
Step 2: Gather All Necessary Information
Before you begin the application, it's crucial to have all your ducks in a row. Incomplete or inaccurate information can cause significant delays!
Sub-heading: Essential Information You'll Need:
- Legal Name of the Entity: This should be the exact legal name of your business as registered with your state (e.g., for an LLC or corporation) or your full legal name if you're a sole proprietorship.
- Trade Name or DBA (Doing Business As): If your business operates under a name different from its legal name, have this ready.
- Physical Address of the Business: The street address, city, state, and ZIP code.
- Mailing Address (if different from physical address): Where you want the IRS to send correspondence.
- 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 small businesses, this will be the owner, a general partner, or a principal officer. You will need their:
- Full Legal Name
- Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or existing Employer Identification Number (EIN)
if the responsible party is an entity.
- Type of Entity: Select the appropriate business structure (e.g., sole proprietorship, partnership, corporation, LLC, trust, estate).
- Reason for Applying: The IRS will ask why you're applying for an EIN (e.g., "Started new business," "Hired employees," "Changed type of organization," "Banking purposes").
- Date Business Started or Acquired: The month, day, and year your business began operations or was acquired.
- Closing Month of Accounting Year: This is usually December for most small businesses unless you have a specific fiscal year.
- Maximum Number of Employees Expected in the Next 12 Months: Provide an estimate for future employees (agricultural, household, other).
- Principal Activity of the Business: Describe the primary business activity (e.g., retail, manufacturing, services, construction).
- Whether you engage in certain activities: Questions about gambling, alcohol, tobacco, or firearms. Most small businesses will answer "No" to these.
Step 3: Choose Your Application Method
The IRS offers several ways to apply for an EIN. The online application is by far the fastest and most recommended method.
QuickTip: A slow read reveals hidden insights.
Sub-heading: Option 1: Apply Online (Recommended for Most)
- Availability: Monday to Friday, 7:00 a.m. to 10:00 p.m. Eastern Time.
- Speed: You receive your EIN immediately upon successful completion of the application.
- Requirements: You must have a legal residence in the United States or a U.S. territory, and the responsible party must have a valid SSN or ITIN.
Sub-heading: Option 2: Apply by Fax
- Process: Complete Form SS-4, Application for Employer Identification Number. Fax the completed form to the IRS.
- Fax Numbers:
- Within the U.S.: 855-641-6935
- Outside the U.S.: 304-707-9471
- Speed: If you provide a return fax number, the IRS will fax a cover sheet with your EIN back to you within 4 business days.
- Important Note: The IRS no longer faxes back the notated Form SS-4 with the EIN.
Sub-heading: Option 3: Apply by Mail
- Process: Complete Form SS-4 and mail it to the IRS.
- Mailing Addresses:
- Within the U.S.: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
- Outside the U.S.: Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999
- Speed: Expect to receive your EIN in approximately 4 weeks. This is the slowest method.
Sub-heading: Option 4: Apply by Phone (International Applicants Only)
- Eligibility: This method is primarily for international applicants whose principal place of business is outside the U.S. and who do not have an SSN or ITIN.
- Phone Number: 267-941-1099 (This is not a toll-free number, international call rates apply).
- Availability: Monday to Friday, 6:00 a.m. to 11:00 p.m. Eastern Time.
- Process: The IRS representative will ask you questions from Form SS-4 over the phone. You should have all your information ready.
- Speed: The EIN is usually assigned during the call.
Step 4: Complete the Application (Form SS-4)
Whether you apply online, fax, or mail, the information required is essentially the same as found on Form SS-4, Application for Employer Identification Number.
Sub-heading: Navigating the Online Application (Recommended)
- Access the IRS Website: Go to www.irs.gov and search for "Apply for an EIN online" or navigate to the "Businesses" section. Look for the "Employer Identification Number (EIN)" link.
- Read the Instructions: Carefully read the instructions and eligibility requirements before proceeding.
- Start the Application: Click "Apply Online Now."
- Identify Your Business Type: Select the legal structure of your business (e.g., Sole Proprietor, Partnership, Corporation, LLC, Estate, Trust).
- Explain Your Reason for Applying: Choose the reason that best fits your situation.
- Provide Responsible Party Information: Enter the name and SSN/ITIN of the responsible party.
- Enter Business Details: Input your business name, trade name (if applicable), address, and start date.
- Answer Tax-Related Questions: Respond to questions about specific business activities (e.g., engaging in gambling, selling alcohol).
- Select Business Category: Choose the category that best describes your business.
- Review and Confirm: Crucially, review all the information you've entered before submitting. Even a small typo can cause issues.
- Receive Your EIN: If your application is successful, your EIN will be displayed immediately. Print this page and save it digitally! This is your official EIN confirmation letter (CP 575 equivalent).
Sub-heading: Filling Out Form SS-4 for Fax or Mail
If you're using the fax or mail method, you'll need to download and fill out Form SS-4.
- Download Form SS-4: Visit the IRS website (www.irs.gov) and search for "Form SS-4." Download the latest version and its instructions.
- Read Instructions Carefully: The instructions for Form SS-4 are extensive and provide detailed guidance for each line item. Do not skip this step.
- Fill Out All Required Fields: Ensure every applicable box is completed accurately. Pay special attention to:
- Line 1-9: Basic business identification and address.
- Line 10: Reason for applying.
- Line 11-17: Detailed business information, including responsible party, start date, and principal activity.
- Line 18: Check if you have applied for an EIN before.
- Sign and Date: The responsible party must sign and date the form.
- Third-Party Designee (Optional): If you want someone else (like an accountant or attorney) to discuss the application with the IRS on your behalf, complete this section.
Step 5: Receive and Safely Store Your EIN Letter
Once your application is processed, the IRS will issue your EIN.
 |
Sub-heading: Understanding Your EIN Confirmation (CP 575 Letter)
- Online Application: As mentioned, you receive your EIN immediately on-screen. This serves as your initial confirmation. The IRS typically does not mail a separate physical CP 575 letter if you apply online.
- Fax/Mail Application: If you apply by fax or mail, the IRS will send a physical letter called Form CP 575, EIN Confirmation Letter, to the mailing address provided on your Form SS-4. This typically arrives within 4 weeks for mail applications or is faxed within 4 business days for fax applications.
Sub-heading: What to Do with Your EIN Letter
- Keep it in a Safe Place: Your EIN is critical for your business. Store the confirmation letter (or the printed online confirmation page) in a secure, accessible location with your other important business documents.
- Make Copies: It's always a good idea to make physical and digital copies for your records.
- Use it Accurately: When using your EIN on tax forms, bank applications, or other official documents, ensure you use the exact name and address associated with the EIN as it appears on your confirmation. Any discrepancies can lead to processing delays.
Frequently Asked Questions (FAQs)
How to find my EIN if I lost the letter?
If you've misplaced your original EIN confirmation letter (CP 575), you have several options:
Tip: Don’t skip the small notes — they often matter.
- Check past business tax returns: Your EIN will be listed on previously filed tax documents.
- Contact your bank: If you opened a business bank account, your bank likely has your EIN on file.
- Contact state or local agencies: Any agencies where you applied for business licenses or permits may have it on record.
- Call the IRS: The most direct method is to call the IRS Business & Specialty Tax Line at 1-800-829-4933 (Monday-Friday, 7 a.m. to 7 p.m. local time). Be prepared to verify your identity and business information. You can request a 147C letter, which is an EIN verification letter that serves the same purpose as the original confirmation.
How to get a copy of my EIN confirmation letter (CP 575)?
The IRS generally issues the original CP 575 letter only once. If you need official proof of your EIN after losing the original CP 575, you can request an EIN verification letter, known as a 147C letter. To obtain this, call the IRS Business & Specialty Tax Line at 1-800-829-4933. They will verify your identity and mail or fax you the 147C letter.
How to apply for an EIN online?
Go to the official IRS website (www.irs.gov), search for "Apply for an EIN online," and follow the step-by-step prompts. You'll need to provide information about your business entity, the responsible party, and the reason for applying. You'll receive your EIN immediately upon successful completion.
How to fill out Form SS-4 for an EIN?
Download Form SS-4 and its instructions from the IRS website (www.irs.gov). Read the instructions thoroughly. Fill in all required fields accurately, including your business name, address, responsible party details, business type, and reason for applying. Sign and date the form before mailing or faxing.
How to change information associated with my EIN (e.g., address, name)?
You do not need a new EIN if you change your business name or address. For a change of address, you can file Form 8822-B, Change of Address or Responsible Party. For a change of business name, simply use the new name on your tax returns and correspondence, and the IRS will update their records.
QuickTip: Read step by step, not all at once.
How to get an EIN for an LLC?
The process for an LLC is the same as for other business entities. If your LLC has multiple members, it will need an EIN. If it's a single-member LLC, you may or may not need one, depending on whether you have employees or elect to be taxed as a corporation. Apply online using the IRS website or by fax/mail with Form SS-4, selecting "Limited Liability Company" as your entity type.
How to get an EIN for a sole proprietorship?
A sole proprietorship only needs an EIN if it has employees, files excise taxes, or wants to separate business and personal finances for professional or privacy reasons. If you decide to get one, follow the same application methods (online, fax, or mail) and select "Sole Proprietor" as your entity type.
How to get an EIN for a partnership?
All partnerships are required to obtain an EIN. The application process is identical to other entity types, using the online application or Form SS-4 via fax or mail, selecting "Partnership" as the entity type.
How to get an EIN for a corporation?
All corporations are required to obtain an EIN. Use the online application or Form SS-4 via fax or mail, selecting "Corporation" as your entity type.
How to check the status of my EIN application?
If you applied online, you received your EIN immediately. If you applied by fax or mail and the typical processing time has passed (4 business days for fax, 4 weeks for mail), you can call the IRS Business & Specialty Tax Line at 1-800-829-4933 to inquire about the status of your application.
 |
