Employer Identification Number (EIN): How to Apply for an EIN
Starting a business in the United States comes with a few important steps, and getting an Employer Identification Number (EIN) is one of them. This guide explains the EIN application process in simple steps.
The good news is that getting an EIN directly from the IRS is free. You do not need to pay a private website just to receive your EIN.
An EIN is a unique nine-digit number issued by the Internal Revenue Service (IRS). It is commonly used to identify a business for federal tax purposes and may also be needed when hiring employees, filing certain tax returns, opening a business bank account, or handling other business-related matters.
The good news: getting an EIN directly from the IRS is free. You do not need to pay a private website just to receive your EIN.
If you have recently formed a U.S. LLC or another business entity and are wondering what to do next, this guide explains the EIN application process in simple steps.
What Is an EIN?
EIN stands for Employer Identification Number.
It is a nine-digit federal tax identification number assigned by the IRS to businesses and certain other entities. Although the name includes the word “Employer,” you may need an EIN even if your business does not currently have employees.
Think of an EIN as a federal identification number for your business. Depending on your business structure and activities, you may use it for federal tax filing and reporting, banking, hiring employees, and other business matters.
Who Can Apply for an EIN?
Many different types of organizations and business structures can apply for an EIN. These can include:
- LLCs
- Corporations
- Partnerships
- Sole proprietorships
- Trusts
- Estates
- Nonprofit organizations
- Certain other entities
The exact requirements can depend on your entity type and situation. The IRS provides specific instructions for completing Form SS-4, the application used to request an EIN.
If you have formed an LLC, it is important to understand how the LLC is classified for federal tax purposes before completing the application.
When Should You Apply for an EIN?
If your business needs an EIN, it is generally best to apply after your business has been legally formed.
For example, if you have created an LLC with a state and received your formation documents, you can then move on to the federal EIN application when an EIN is required for your business.
The IRS also advises organizations to be legally formed before applying for an EIN.
What Do You Need Before Applying?
Having the required information ready can make the application much easier.
Depending on your situation, you may need information such as:
- Legal name of the business
- Trade name, if applicable
- Mailing address
- Physical business address, when required
- Name of the responsible party
- Taxpayer identification information
- Type of business entity
- Number of LLC members, if applicable
- Reason for applying
- Date the business started
- Principal business activity
- Contact information
One of the most important parts of the application is identifying the responsible party.
The responsible party is generally the individual who ultimately owns or controls the business and has authority over its funds or assets. The IRS says the responsible party should generally be a person rather than another entity.
How to Apply for an EIN
The IRS provides several ways to apply for an EIN. The method available to you depends partly on where your principal place of business is located.
1. Apply Online
For eligible applicants with a principal place of business in the United States or U.S. territories, the IRS online application is usually the easiest option.
The application is available directly through the IRS website, and there is no fee to obtain an EIN through the IRS.
The online application works as an interactive process. You answer the questions, provide the required information, and submit the application.
If you are eligible and the application is approved, the IRS can issue the EIN online immediately.
One important point: the IRS online application cannot be used if the business’s principal place of business is outside the United States or U.S. territories.
2. Apply Using Form SS-4
If you cannot use the online application, another option is Form SS-4, Application for Employer Identification Number.
Form SS-4 asks for information about your business, including its legal name, address, responsible party, entity type, reason for applying, and other details.
You should complete the form carefully because the information you provide establishes your business tax account with the IRS.
Once the form is completed, eligible applicants can submit it by fax or mail using the IRS instructions for their situation.
3. International Applicants
If your principal place of business is outside the United States, the process is different.
The IRS says international applicants cannot use the online EIN application. Instead, eligible international applicants can apply by telephone or submit Form SS-4 by fax or mail.
International applicants can contact the IRS at 267-941-1099 during the hours listed by the IRS. The number is not toll-free.
For applicants outside the United States who submit Form SS-4 by fax, the current IRS instructions list 304-707-9471 as the fax number. Applicants located within the United States but without a U.S. principal place of business use a different fax number.
Because IRS contact details can change, always check the current IRS instructions before sending your application.
How to Fill Out Form SS-4
If you need to use Form SS-4, don’t let the form look intimidating. Most of the questions are simply asking for basic information about your business.
1. Enter Your Legal Business Name
Start with the legal name of your business exactly as it appears on your formation documents.
If you have a separate trade name or DBA, provide it where the form asks for the trade name.
2. Enter Your Business Address
Provide the appropriate mailing address and, when required, the physical business address.
Make sure your address is entered correctly. If your address is outside the United States, the IRS instructions require the city, province or state, postal code, and full country name.
3. Identify the Responsible Party
Enter the full name of the person who ultimately owns or controls the business.
This is an important section of the application. Do not simply use the name of a person who helped form your company if that person does not actually control or own the business.
The IRS specifically states that nominees should not apply for an EIN or be listed as the responsible party.
4. Provide Taxpayer Identification Information
The application asks for the responsible party’s taxpayer identification information.
If the responsible party does not have and is not eligible to obtain an SSN or ITIN, the IRS instructions state that “foreign” or “N/A” can be entered in the applicable field.
5. Provide LLC Information
If you are applying for an EIN for an LLC, Form SS-4 asks questions about the LLC, including the number of members and its federal tax classification.
Do not automatically choose an option simply because you have an LLC. Your federal tax classification matters, so make sure the selection matches your actual situation.
6. Select the Reason for Applying
The form asks why you are applying for an EIN.
If you are obtaining an EIN because you have started a new business, select the appropriate option for your situation.
7. Provide Business Details
The application also asks about your business activity and other details.
For an e-commerce business, for example, you should provide information that accurately describes the business activity rather than choosing an unrelated category.
8. Review Everything Before Submitting
This is one of the most important steps.
Before submitting your application, carefully review the legal business name, address, responsible party information, entity classification, business activity, and other details.
A small mistake can create unnecessary problems later, so take a few minutes to check the application before sending it.
Is an EIN Free?
Yes.
No charge for obtaining an EIN if you apply directly through the IRS. The IRS specifically warns applicants about websites that charge a fee for an EIN.
You may find private companies offering EIN application services for a fee. Those services are optional. You can apply directly through the IRS when you are eligible.
How Long Does It Take to Get an EIN?
The processing time depends on the application method.
For eligible U.S.-based applicants using the IRS online application, the EIN can be issued immediately after successful completion of the application.
For fax applications, the IRS says an EIN is generally returned by fax within about 4 business days when the appropriate fax information is provided.
Mail applications can take longer. The IRS instructions say to allow approximately 4 weeks for receiving an EIN by mail.
So, if speed matters, use the fastest application method available for your situation.
Important EIN Application Mistakes to Avoid
Before submitting your EIN application, keep these common mistakes in mind:
1. Using the wrong business name
Your legal name should match your official business records.
2. Choosing the wrong entity classification
An LLC can have different federal tax classifications, so don’t select one without understanding your business structure.
3. Using a nominee as the responsible party
The IRS says nominees are not authorized to apply for an EIN.
4. Entering incorrect address information
Double-check your mailing and physical address details.
5. Submitting multiple applications
The IRS currently limits EIN issuance to one EIN per responsible party per day.
6. Paying a third party unnecessarily
An EIN obtained directly from the IRS is free.
What Should You Do After Getting Your EIN?
Once you receive your EIN, save the IRS confirmation notice in a secure place.
You may need the EIN for future business and tax-related activities, so keeping your records organized can save you time later.
You should also keep your business information up to date. If your responsible party changes, the IRS requires the change to be reported using Form 8822-B within the applicable timeframe.
Frequently Asked Questions About EIN
Final Thoughts
Getting an Employer Identification Number does not have to be complicated.
The key is to choose the correct application method, prepare your business information, identify the correct responsible party, and carefully review your application before submitting it.
For eligible U.S.-based applicants, the IRS online application is generally the simplest option and can provide the EIN immediately. International applicants have different options, including telephone, fax, and mail.
Most importantly, always use the official IRS information when applying. Requirements, contact details, and procedures can change, so checking the latest IRS instructions before submitting your application is a smart final step.
Official IRS EIN information: irs.gov — Employer Identification Number | Download: Form SS-4 (PDF)