Getting an EIN (Employer Identification Number) online is fast and straightforward. It’s essential for tasks like opening a business bank account, filing taxes, and hiring employees. Follow these steps to ensure a smooth process:
- Eligibility: Your business must be based in the U.S. or its territories, and the responsible party should have a valid SSN or ITIN.
- Preparation: Gather your business details, including legal name, structure, physical address, and the responsible party’s information.
- Application Process:
- Visit the IRS website and access the EIN Assistant.
- Complete the online form in one session (it times out after 15 minutes of inactivity).
- Double-check details before submission.
- Receive EIN: If successful, you’ll get your EIN immediately. Use it for banking, payroll, tax filings, and more.
For international businesses or those unable to apply online, alternatives like fax, mail, or phone are available. Each method has specific requirements and processing times, so choose the one that fits your situation. Avoid common mistakes like entering incorrect information or submitting duplicate applications to prevent delays.
Getting Ready to Apply for an EIN Online
Before starting your EIN application online, make sure you meet the eligibility criteria and have all the necessary details ready. The IRS has specific guidelines for online applications, so being prepared can save you from having to redo the process.
Who Can Apply for an EIN Online
To use the IRS online application system, your business must be based in the United States or its territories. If your main business location is outside the U.S., you’ll need to apply by phone instead by calling +1-267-941-1099.
The application must be completed by the responsible party who has control over the business entity or by an authorized representative. This individual must have a valid Taxpayer Identification Number (TIN), which could be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Also, keep in mind that the IRS limits applications to one EIN per responsible party per day.
It’s important to establish your legal business entity before applying for an EIN. Skipping this step can cause delays or complications during the process.
Required Documents and Information
Having the correct information at hand will make the process much simpler. You’ll need your legal business name exactly as it appears in your state’s official formation documents. If you’re operating under a trade name or "doing business as" (DBA) name, have that ready too.
You’ll also need to know your business structure – whether it’s a sole proprietorship, partnership, LLC, corporation, or another type of entity – as this impacts your tax responsibilities. Be sure to provide a U.S. business address for correspondence. While a P.O. Box can be used for mailing purposes, your principal business address must be a physical location.
The application will ask for detailed information about the responsible party, including their full legal name, TIN (either SSN or ITIN), and their role or title within the business. You’ll also need to state why you’re applying for an EIN, such as starting a new business, hiring employees, or opening a business bank account.
Lastly, make sure you’re aware of the technical requirements for completing the online application.
Technical Requirements and Operating Hours
The IRS online system operates Monday through Friday, from 7:00 AM to 10:00 PM Eastern Time. You must complete your application in a single session, as the system will time out after 15 minutes of inactivity. To avoid losing progress, ensure you have a stable internet connection.
If you encounter technical errors with Reference Numbers 109, 110, 112, or 113, wait 24 hours before attempting again. If the issue persists, you can apply via fax or mail using Form SS-4. Be aware that high user traffic may also cause occasional system delays.
Step-by-Step Guide to Applying for an EIN Online
Once you’ve gathered all the necessary information, follow these steps to complete your EIN application online. The IRS has designed its system to guide you through the process with straightforward questions and prompts.
Access the IRS EIN Assistant
Head to the official IRS website at www.irs.gov and locate the "Get an Employer Identification Number" page. Look for the "Apply for an EIN" or "Apply Online Now" link to start the application.
Once on the EIN Assistant page, take a moment to review the introductory information and any restrictions. When ready, click the "Begin Application" button to proceed. Remember, applying directly on the IRS website is completely free.
Fill Out the Application Form
The application is structured like an interview, where you answer questions by filling in blanks, checking boxes, or selecting options. Helpful definitions for technical terms are available – just click the blue, underlined text for clarification without disrupting your progress.
Step 1: Choose Your Business Structure
Select the legal structure of your business (e.g., LLC, Corporation). If you choose Corporation, specify whether it’s a regular Corporation or an S Corporation. Click "Continue" to move forward.
Step 2: Provide LLC Member Information (if applicable)
If applying as an LLC, enter details about your members, including the total number and the state where your business operates. For single-member LLCs, the system typically confirms the entity as a disregarded entity, while multi-member LLCs are usually classified as partnerships.
Step 3: State the Reason for Your EIN Request
Select the reason for requesting an EIN. Common choices include "Started a new business", "Hired Employees", or "Banking Purposes." Other options include "Changed Type of Organization" or "Purchased Active Business."
Step 4: Enter Responsible Party Information
Provide the name of the individual responsible for your business’s tax matters. For LLCs, this is usually a member, while for corporations, it’s typically a corporate officer. Include their full name and either their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Use only hyphens (-) and ampersands (&) in names – avoid other punctuation.
Step 5: Enter Business Location Details
Input your business’s physical U.S. address and phone number. The street address line allows up to 35 characters, so include only essential details. P.O. Boxes cannot be used as the primary address, though you can provide a separate mailing address if necessary. The IRS will validate your address using USPS data.
Step 6: Provide Legal and Trade Names
Enter your business’s legal name exactly as it appears in your formation documents, omitting endings like Corp, Inc, or LLC. If you use a trade name (doing business as), include it separately without corporate endings. You’ll also need to specify the state where your formation documents were filed and the entity’s start date.
Step 7: Answer Federal Excise Tax Questions
Indicate whether your business is involved with vehicles, gambling, quarterly federal excise tax returns, or alcohol, tobacco, and firearms. For most standard businesses, the answer is "no."
Step 8: Describe Your Business Activity
Choose the category that best describes your business’s activities. If none of the options fit, select "Other" and provide a brief description.
Step 9: Choose Your Confirmation Letter Delivery Method
Decide how you’d like to receive your EIN confirmation letter. You can choose immediate online delivery or opt for mail, which can take up to four weeks.
Before submitting, double-check all details to ensure accuracy.
Review and Submit the Application
The final step is crucial. After completing the form, the system will display a summary page with all the information you’ve entered. Print this summary for your records. If you spot an error, you’ll need to restart the application from the beginning, as corrections aren’t allowed at this stage.
Once you’ve reviewed everything, click "Submit." The process typically takes about two minutes. If you chose online delivery, your EIN will be issued immediately. EINs issued online have unique prefixes (20 or 26) that identify them as such. Keep in mind, while you’ll receive your EIN instantly, it may take up to two weeks to be fully integrated into the IRS’s system. During this time, electronic filings and payments might not work as expected.
If you ever misplace your EIN, you can call the IRS at 829-4933 and follow the prompts to speak with a representative.
Other Ways to Apply for an EIN
Applying online is the quickest and most straightforward way to get an EIN, but it’s not always an option for every business. Luckily, the IRS provides alternative methods to help you secure your EIN when online filing doesn’t work for your situation.
Fax and Mail Applications
If your business structure or location prevents you from using the online system, you can apply for an EIN by fax or mail using Form SS-4. Both methods are available for all types of businesses.
To apply by fax, fill out Form SS-4 and send it to the correct fax number for your state. You can find these details on the IRS website, as the processing centers vary by location. The IRS typically processes faxed applications within four business days.
If you opt for mail, the process takes longer – usually four to five weeks. Complete and sign Form SS-4, then mail it to the IRS address designated for your state (also listed on their website). To ensure your application reaches the IRS safely, use certified mail or a trackable delivery service.
The information required on Form SS-4 is the same as the online form, but you’ll need to print, fill out, and sign it manually. Double-check your details before submitting, as errors can delay the process by weeks.
Fax and mail applications are especially helpful for businesses with complex structures, like partnerships with multiple responsible parties, or for cases where additional documentation is needed – something the online system doesn’t support.
If neither fax nor mail works for your situation, the phone application option below may be your best bet.
Phone Applications for International Applicants
For international business owners who don’t have a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), applying by phone is often the only viable option. This method is designed for foreign entities looking to establish a presence in the U.S.
To apply, call the IRS at 267-941-1099 (note: this is not a toll-free number) between 6:00 AM and 11:00 PM Eastern Time, Monday through Friday. The phone lines are closed on federal holidays, and wait times can be lengthy during busy periods.
During the call, an IRS representative will assist you in completing Form SS-4 based on the information you provide. Be prepared to share details like your foreign tax identification number, business address, and the reason for requesting an EIN. These are the same questions you’d answer on the online form.
The major benefit? You’ll receive your EIN immediately during the call. The IRS will also send a confirmation letter by mail, which usually arrives within two weeks. To avoid any confusion, keep detailed notes during the call, including the representative’s name and the date you received your EIN.
This method is particularly useful for international entrepreneurs who need to act quickly, such as opening a U.S. bank account or meeting other business deadlines. However, keep in mind that the process requires clear communication in English, which could be challenging for some applicants.
Comparison of EIN Application Methods
Each method has its strengths and limitations, making them suitable for different needs:
Method | Processing Time | Cost | Best For | Limitations |
---|---|---|---|---|
Online | Immediate | Free | U.S. applicants with SSN/ITIN, standard business structures | Limited hours (7 AM – 10 PM ET), restricted to certain entities |
Fax | 4 business days | Free | Complex entities, when online isn’t available | Requires Form SS-4, potential fax issues |
4-5 weeks | Free | All business types, detailed documentation | Longest processing time, risk of lost mail | |
Phone | Immediate | Free | International applicants without SSN/ITIN | Long wait times, international call charges, English required |
The online application is the best option for most U.S.-based businesses due to its speed and ease of use. However, fax applications are a good alternative if you need faster processing than mail but can’t apply online. For international applicants, phone applications provide a direct and efficient way to secure an EIN, despite the potential challenges of language barriers and call costs.
When choosing your application method, consider your business’s specific needs. If you’re forming a standard LLC or corporation and live in the U.S., the online option is ideal. For more complex situations or international applications, these alternative methods ensure you can still get your EIN without unnecessary delays.
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Fixing Problems and Next Steps After Getting Your EIN
Even with thorough preparation, applying for an EIN can sometimes come with challenges. Knowing the common mistakes and understanding what to do after receiving your EIN can help you avoid unnecessary delays and start using your new number effectively.
Common Application Mistakes and How to Avoid Them
One of the most frequent errors during the EIN application process is mistyping information. Simple mistakes – like entering the wrong business name, address, or Social Security Number – can lead to delays or even rejections. The IRS system is strict about matching information, so if your business name doesn’t align exactly with what you’ve registered with your state, your application might be flagged.
Another common issue is session timeouts. The IRS will automatically log you out after 15 minutes of inactivity, which means if you step away or take too long gathering documents, you’ll lose your progress. To avoid this frustration, have all your details ready and complete the application in one sitting.
Choosing the wrong business structure is another pitfall. For example, new entrepreneurs often confuse single-member LLCs with sole proprietorships or misidentify partnerships and corporations. This mistake can have tax implications down the line, so it’s crucial to confirm your business structure with your state registration documents before applying.
Submitting duplicate applications is also a common issue. Many applicants panic, thinking their first submission didn’t go through, and send another application. The IRS flags duplicates, which can slow down processing. If you’re unsure whether your application was successful, wait for the confirmation email or call the IRS directly instead of submitting again.
To minimize these risks:
- Save or print a copy of your information before starting the application.
- Use the exact business name from your state registration documents.
- Make sure your computer stays active during the process.
- If you’re unsure about any section, consult the IRS instructions or seek professional advice rather than guessing.
If your application is rejected, don’t worry. Follow the steps below to resolve the issue and reapply.
What to Do if Your Application is Rejected
Although uncommon, EIN application rejections do happen. The most typical reasons include mismatched information, incomplete applications, or attempting to apply for an EIN for a business structure that already has one.
If your application is rejected, the IRS will send a rejection notice outlining the specific issue. Carefully review this notice to understand what went wrong and how to fix it.
For mismatched information, double-check all details and gather the correct documents before reapplying. If your business name doesn’t match your state filing, you may need to update your state registration or use the exact name as it appears in those records.
If the rejection is due to business structure confusion, contact the IRS at 800-829-4933 for clarification. Sometimes the problem is as simple as selecting the wrong category on the form, but in other cases, additional documentation might be required.
For duplicate EIN flags, you’ll need to provide state incorporation documents to prove your business is unique or explain any changes in your business structure that might justify a new EIN.
When reapplying, wait at least 24 hours after a rejection to allow the IRS system to process the previous application. This reduces the risk of further complications. Keep all rejection notices and related correspondence for your records.
Once the issue is resolved and your EIN is approved, you can start using it for your business needs.
How to Use Your EIN
With your EIN in hand, you can immediately start using it to organize and grow your business. One of the first steps is opening a business bank account. Most banks require an EIN to set up business accounts, which is essential for separating your personal and business finances – a key step for liability protection and tax compliance.
You’ll also need your EIN to set up payroll, even if you’re the only employee. The IRS requires businesses to use their EIN on payroll tax forms, such as quarterly Form 941 filings and annual Form W-2s. This ensures proper reporting of wages and tax withholdings.
An EIN is also necessary for applying for business credit and working with vendors. Many suppliers and service providers require an EIN for their 1099 reporting purposes, so having it ready will simplify these relationships.
For tax purposes, your EIN will be used on all business tax returns, estimated tax payments, and any correspondence with the IRS. If you’re operating as an LLC, you may need to make additional tax elections, which will also require your EIN.
Additionally, many business licenses and permits require an EIN. Whether it’s a sales tax permit, professional license, or industry-specific permit, having your EIN ready will streamline these applications.
If you’re unsure about the next steps, services like Business Anywhere can provide guidance on compliance, banking, and accounting, helping you avoid missteps as you establish your business. Having professional support can make the process smoother and set you up for long-term success.
Conclusion
Taking a precise and well-prepared approach not only simplifies the process but ensures your business is on the right track from the start. Applying online for your EIN is incredibly quick, often taking just minutes, making it the go-to option for most U.S.-based businesses.
Accuracy matters. As Swostika Silwal, Co-Founder & CEO of EasyFiling Inc., points out, "The IRS EIN application process is straightforward, making simple mistakes can lead to frustrating delays when you’re eager to get your business up and running". If you’d rather avoid the hassle of potential errors, professional services are available to guide you through the process.
For a stress-free experience, BusinessAnywhere offers a complete solution for $97. They handle all the paperwork, freeing you to focus on what truly matters – growing your business.
Whether you choose to apply on your own or seek professional help, securing your EIN is a crucial step that unlocks opportunities for your business. Getting it right the first time ensures smoother operations and fewer headaches down the road.
"Stop navigating confusing IRS processes on your own. Let BusinessAnywhere handle the details so you can focus on growing your business." – BusinessAnywhere
FAQs
What should I do if I made a mistake on my EIN application?
If you discover an error on your EIN application, it’s important to inform the IRS in writing. Draft a letter that clearly explains the mistake, includes the correct details, your current EIN, and your business name. Don’t forget to have the letter signed by an authorized representative of your business.
Mail the letter to the same IRS office where you originally submitted your application. Once received, the IRS will review your request and reach out if they need more information. Keep in mind that processing corrections can take several weeks, so be patient as they update their records.
How can international businesses apply for an EIN without a U.S. SSN or ITIN?
If your business operates internationally and you lack a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), don’t worry – you can still apply for an EIN. All you need to do is fill out Form SS-4 and send it to the IRS via mail or fax. While an SSN or ITIN isn’t required, you’ll need to include other identifying details about your business.
Double-check the accuracy of the information you provide on the form, as even small mistakes can cause delays. Also, be aware that processing times depend on how you submit your application, so plan ahead to avoid unnecessary setbacks.
What’s the difference between applying for an EIN online, by fax, or by mail?
If you’re looking for speed and ease, applying for an EIN online is your best bet. Once you complete the application, you’ll usually get your EIN right away, making it perfect for anyone in a hurry.
Faxing your application is a bit slower, typically taking about four business days. You’ll need to fill out and send the SS-4 form to the IRS, and they’ll fax your EIN back once it’s processed.
For those who prefer traditional methods or aren’t in a rush, applying by mail is an option. However, this is the slowest route, often taking 4-6 weeks for the IRS to process your application and send your EIN.