Getting an Employer Identification Number (EIN) is essential for running a business in the U.S. It’s a nine-digit number issued by the IRS to identify your business for tax purposes, similar to a Social Security number but specifically for businesses. You’ll need it to hire employees, open a business bank account, file taxes, and more.
Here’s a quick overview:
- Who Needs an EIN? Businesses with employees, corporations, partnerships, LLCs, tax-exempt organizations, estates, and trusts. Sole proprietors may also apply, even if not required.
- Benefits of an EIN: Separates personal and business finances, builds business credit, and simplifies tax filings. It’s free to apply.
- How to Apply: Choose one of four methods – online (fastest for U.S. businesses), phone (for international applicants), fax, or mail. Each has specific requirements and processing times.
EIN Eligibility Requirements
Before starting the application process, it’s crucial to know who qualifies for an EIN and the specific rules that apply to different types of businesses. While eligibility is broad, certain conditions vary based on your business structure and location. Knowing these details can make the process smoother and more straightforward.
Who Can Apply?
Most business types are eligible to apply for an EIN. For instance, sole proprietorships can get an EIN even if they don’t have employees, although it’s not always mandatory. On the other hand, partnerships with two or more people must have an EIN, regardless of whether they employ anyone. Similarly, limited liability companies (LLCs) and corporations – including C corporations, S corporations, benefit corporations, and nonprofit corporations – are required to obtain an EIN.
Other entities like tax-exempt organizations, trusts, estates, and those managing retirement plans also qualify for an EIN.
If you’re an international business planning to operate in the U.S., you can apply for an EIN as well. However, international applicants must follow different procedures compared to domestic businesses. The main requirement is conducting activities that involve U.S. tax obligations.
Responsible Party Requirements
Every EIN application must list a responsible party – the individual who has control over the business and its finances. This person will act as the main point of contact for the IRS regarding any tax-related matters.
Here’s what you need to know about the responsible party:
- The responsible party must be an individual (a natural person), not another business entity, unless the applicant is a government entity.
- The IRS limits each responsible party to one EIN application per day.
- If your business has multiple owners or managers, you’ll need to designate one person as the primary contact for the IRS.
- Nominees or individuals with limited authority cannot serve as the responsible party or apply for an EIN.
U.S. Business Location Requirements
Your business’s location determines which application methods are available to you. Domestic businesses – those with their principal location in the U.S. or U.S. territories – can apply online. This is the quickest and easiest option, but it’s limited to businesses based in the U.S..
For international businesses, the process is slightly different. These applicants must use one of the following methods to apply:
- Phone: Call 267-941-1099 (note: this is not a toll-free number) between 6:00 a.m. and 11:00 p.m. Eastern Time, Monday through Friday.
- Fax: Submit Form SS-4 via fax. If you include a return fax number, you’ll typically receive results within four business days.
- Mail: Send Form SS-4 by mail. This method takes the longest, with processing times of about four weeks.
For international applicants who don’t have a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or EIN, the IRS advises entering "Foreign" on line 7b of Form SS-4.
Next, we’ll dive into the four methods you can use to apply for your EIN.
4 Ways to Apply for an EIN
Once you’ve confirmed your eligibility, it’s time to choose the best way to apply for your Employer Identification Number (EIN). The method you pick will depend on factors like your business location, how quickly you need the number, and your preferred application process.
Application Methods
Online Application is the fastest and most convenient option for U.S.-based businesses. By applying through the IRS website, you can get your EIN immediately after approval. The online system is available Monday through Friday, from 7:00 a.m. to 10:00 p.m. Eastern Time. Keep in mind, you’ll need to complete the application in one session, so gather all necessary information beforehand. This method is ideal if your business is located in the U.S. and the responsible party meets the eligibility requirements.
Phone Application is specifically for international applicants. If you’re outside the U.S., you’ll need to fill out Form SS-4 in advance and call the IRS at 267-941-1099. Phone lines are open Monday through Friday, from 6:00 a.m. to 11:00 p.m. Eastern Time[2, 21]. Once your information is verified, an IRS representative will provide your EIN over the phone.
Fax Application offers a balance between speed and simplicity. After completing Form SS-4, you can fax it to the IRS. Be sure to include a return fax number, as this ensures you’ll receive your EIN within about four business days.
Mail Application is the traditional route. While it doesn’t require access to the internet or a fax machine, processing times are much longer – about four weeks. To apply, fill out Form SS-4 and mail it to the IRS. This method works best if you’re not in a rush to get your EIN.
It’s worth noting that the IRS only allows one EIN to be issued per responsible party per day. Also, applying through official IRS channels is completely free[2, 23].
Method Comparison Chart
| Application Method | Processing Speed | Best For | Requirements | Availability |
|---|---|---|---|---|
| Online | Immediate | U.S. businesses needing quick results | U.S. location; valid SSN/ITIN/EIN | Mon–Fri, 7 AM–10 PM ET |
| Phone | Immediate | International businesses | Completed Form SS-4 | Mon–Fri, 6 AM–11 PM ET |
| Fax | 4 business days | U.S. businesses with fax access | Completed Form SS-4; fax machine | Anytime |
| 4 weeks | Non-urgent applications | Completed Form SS-4; postal service | Anytime |
For domestic businesses, the online method is often the top choice due to its speed and ease of use. International applicants, on the other hand, will find the phone method to be the quickest way to secure an EIN. If you prefer a non-digital option but still want faster processing, faxing is a practical alternative. And for those who aren’t in a hurry, mailing the application remains a reliable option.
Ultimately, the best method depends on your circumstances. U.S.-based businesses with internet access should opt for the online application for its efficiency[24, 25]. International businesses needing immediate results should rely on the phone option. Faxing offers a middle ground for those who prefer a non-online approach but still want quicker processing. Choose the method that aligns with your needs to keep your business plans on track.
How to Apply for an EIN Online: Step-by-Step Guide
Applying for an EIN online is the quickest way to get your number if your business is based in the United States. Once approved, you’ll receive your EIN immediately, making it ideal for businesses that need to act fast. Here’s a breakdown of the steps to ensure a smooth application process.
Step 1: Visit the IRS EIN Website
Start by heading to the official IRS website at irs.gov. Look for the "Apply for an Employer Identification Number (EIN) Online" section. Make sure you’re on the legitimate IRS site to avoid scams.
Before you begin, confirm your business qualifies for the online application. Your principal business must be located in the U.S. or its territories, and you’ll need a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If your business is based outside the U.S., you’ll need to apply by phone, fax, or mail instead.
The online system is available Monday through Friday from 7:00 a.m. to 10:00 p.m. Eastern Time. It’s closed on weekends and federal holidays, so plan ahead. Also, note that your session will expire after 15 minutes of inactivity, so gather all necessary details before starting.
Step 2: Choose Your Business Type
Next, the system will ask you to identify your business structure. Options include sole proprietorship, partnership, corporation, or LLC. Your choice here is important because it determines your tax obligations and legal structure.
If you’re applying as a corporation or LLC, your principal business must be in the U.S. or its territories. Additionally, the responsible party – the individual who owns or controls the business – must be a person, not another business entity, unless you’re applying as a government entity.
Step 3: Enter Your Business Information
This step requires detailed information about your business. Make sure your business name is formatted correctly, using only letters, numbers, hyphens, and ampersands. Avoid special characters or symbols, as they can cause errors.
You’ll also need to provide:
- Business address: Keep in mind, street addresses are limited to 35 characters, so abbreviate if necessary.
- Responsible party details: Include their name, SSN or ITIN, and address.
- Business start date: Indicate when operations began or will begin.
- Principal business activity: Provide a brief description of your business operations.
- Employee count: List the current number of employees and an estimate for the next 12 months.
The applicant must have a valid Taxpayer Identification Number (SSN, ITIN, or EIN). If someone else is applying on the owner’s behalf, they must complete and sign Form SS-4 and retain a copy for their records.
Step 4: Review and Submit Your Application
Before submitting, carefully review all the details you’ve entered. Mistakes can lead to delays or incorrect documentation, which can be challenging to fix later. Double-check your business name, address, and all numerical entries for accuracy.
Ensure the responsible party’s information is correct, as they will serve as the primary contact for IRS correspondence. Keep in mind, the IRS allows only one EIN application per responsible party per day. If you make an error, you’ll need to wait until the next business day to reapply.
Step 5: Save Your EIN Confirmation
Once your application is successfully submitted, you’ll receive your EIN confirmation notice immediately. This document contains your nine-digit EIN and serves as official proof of your tax identification number. It’s crucial to save multiple copies of this notice.
Print or save the confirmation notice to your computer and store backups in secure locations. Many banks, vendors, and business partners will ask for a copy of this document to verify your EIN. Having it readily available will help streamline account openings and other business activities.
Keep your EIN confirmation with your essential business records. Using a digital document management system can help you stay organized and ensure quick access when needed. Your EIN will be required for tasks like opening business bank accounts, applying for licenses, filing taxes, and hiring employees, so keep it secure but accessible. Properly filing this document now will save you time and headaches down the road.
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Tips for a Smooth EIN Application Process
Applying for an Employer Identification Number (EIN) doesn’t have to be a headache. With the right preparation and attention to detail, you can avoid common mistakes and keep your business plans on track. Here’s how to make the process as smooth as possible.
Gather Your Information First
Preparation is key. Before you even start your EIN application, make sure you’ve got all the necessary details at hand. This saves time and helps you avoid having to restart the process.
Start by collecting the personal information of the responsible party. This includes their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), full legal name, and current address.
If you’re forming a new business entity – like an LLC, corporation, partnership, or tax-exempt organization – make sure your state registration is complete before applying for an EIN. Skipping this step can delay your application.
Using Form SS-4 as a checklist can also help. It includes sections for important details like your business’s primary activity and estimated number of employees. If someone else is applying on your behalf, ensure they sign and keep a copy of Form SS-4 for your records.
Avoid Common Application Mistakes
Accuracy matters. Here are a few common pitfalls to steer clear of:
- Use your business’s exact legal name. Any mismatch between your EIN application and your state registration can cause delays.
- Don’t apply for multiple EINs unnecessarily. Each business entity only needs one EIN, even if it has multiple activities. Applying for extra EINs can create confusion.
- Double-check your addresses. Ensure that the street, mailing, and responsible party addresses meet IRS formatting guidelines, including any character limits.
- Choose the correct business classification. Misclassifying your business structure can lead to complications down the line. If you’re unsure, refer to the definitions in the online application.
- Take your time. The IRS only allows one EIN per responsible party per day. Rushing and making errors could mean waiting until the next business day to reapply.
By carefully reviewing your application, you can avoid unnecessary delays and headaches.
Use Official IRS Resources
The IRS provides several tools to help you through the process. The online EIN application is free and gives immediate results for eligible businesses. It also includes built-in help features to clarify confusing terms.
Prefer to apply by mail or fax? You can download Form SS-4 from the IRS website. While these methods take longer, they’re great options for international applicants or businesses that don’t qualify for online processing.
The IRS also offers a variety of small business resources, such as tax calendars, e-newsletters, and guidance tools. These can help you stay on top of deadlines and better understand your tax responsibilities.
Use BusinessAnywhere for Document Management
Once you’ve received your EIN confirmation, keeping it safe and accessible is crucial. Banks, vendors, and business partners may require this document for account setups and other business activities.
BusinessAnywhere offers a secure document management solution to keep your EIN confirmation and other important business files organized. With unlimited storage, you can maintain both digital and physical copies, ensuring quick access whenever needed.
Their platform also includes compliance alerts to remind you of key deadlines like tax filings and annual reports. Plus, with 24/7 access to your stored documents, you can retrieve your EIN confirmation anytime. BusinessAnywhere’s integration with services like registered agent support and virtual mailboxes makes it a one-stop shop for managing your business documents as your company grows.
Key Points About Getting an EIN
Here’s a quick rundown to help you navigate the process of obtaining an Employer Identification Number (EIN) efficiently.
An EIN is essentially your business’s tax ID, a crucial identifier that boosts your credibility with banks, vendors, and customers. Whether you’re launching an LLC, starting a corporation, or hiring employees, this number serves as your business’s official tax identification.
The IRS online application is the fastest and easiest way to get your EIN, providing instant results for eligible businesses. While alternatives like mail, fax, and phone are available, they take more time to process. The best part? The online system is completely free.
Before you start, make sure to gather all necessary business information – this includes verifying your legal name and addresses. Be cautious to avoid submitting multiple applications or using an incorrect legal name. The IRS limits EIN requests to one per responsible party per day, so double-check everything before submitting.
Once you’ve secured your EIN, staying organized is key. Tools like BusinessAnywhere can help streamline document management by combining services like company formation, registered agent support, a virtual mailbox, and online notary services. With unlimited storage and compliance alerts, you’ll stay on top of important deadlines.
FAQs
How do I apply for an EIN online?
To get an EIN online, head over to the IRS website and use their EIN Assistant tool. The process is straightforward: fill out the required questions, share the necessary details about your business, and submit the form electronically. Once you’re done, you’ll get your EIN immediately.
This service is completely free and operates Monday through Friday, from 7:00 a.m. to 10:00 p.m. Eastern Time. Be sure to have all your business information handy to make the process as quick and seamless as possible.
Can a foreign business without a U.S. address or taxpayer identification number get an EIN?
Yes, foreign businesses without a U.S. address or taxpayer identification number can still apply for an Employer Identification Number (EIN). The IRS provides options for these entities to apply via phone, fax, or mail. While the online application is restricted to businesses with a U.S. address, foreign applicants can successfully obtain an EIN using these alternative methods. To make the process as seamless as possible, ensure you have all the required details ready – this includes the business name, its type, and information about the responsible party.
What mistakes should I avoid when applying for an EIN, and how can I fix them?
When you’re applying for an EIN, there are a few common mistakes you’ll want to steer clear of:
- Missing information: Forgetting key details like the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), or selecting the wrong business entity type.
- Using the wrong method: If your business’s principal location is outside the U.S., keep in mind that the online application option isn’t available to you.
- Paying unnecessary fees: Some third-party websites charge for this service, but the IRS offers EIN applications 100% free.
To sidestep these issues, make sure you have all the required information ready before starting and apply directly through the official IRS website. If you do make a mistake, minor errors can often be corrected during the process. For bigger issues, you might need to reapply or reach out to the IRS for help.
