Apply for an Employer Identification Number (EIN)

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What is an EIN?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number that the Internal Revenue Service (IRS) assigns to businesses operating in the United States. It identifies a business entity for tax administration purposes. Similar to a Social Security number for an individual, an EIN serves businesses exclusively.

Who Needs an EIN?

An Employer Identification Number (EIN) is necessary for various business entities and activities. Below is a detailed list of who needs an EIN:

• Businesses with Employees: Any business that hires employees must obtain an EIN for reporting employment taxes.
• Corporations and Partnerships: All corporations and partnerships, including multi-member Limited Liability Companies (LLCs), require an EIN.
• Sole Proprietors with Employees: Sole proprietors need an EIN if they have employees or file specific tax forms, such as Employment, Excise, or Alcohol, Tobacco, and Firearms tax returns.
• Trusts and Estates: Estates and trusts that report income on Form 1041 (U.S. Income Tax Return for Estates and Trusts) must have an EIN.
• Non-Profit Organizations: Non-profits, including churches, charities, and other organizations seeking tax-exempt status under IRS Section 501(c)(3), require an EIN.
• Farmers’ Cooperatives: Farmers’ cooperatives use an EIN for reporting and filing taxes.
• Real Estate Mortgage Investment Conduits (REMICs): REMICs must obtain an EIN.
• Plan Administrators: Administrators of pension, profit-sharing, or retirement plans apply for an EIN for the plan.
• Corporations and LLCs: Any corporation or LLC, regardless of whether they have employees, needs an EIN.
• Businesses Involved with Certain Taxable Activities: Businesses that withhold taxes on income (other than wages) paid to a non-resident alien or handle excise taxes, alcohol, tobacco, or firearms, must have an EIN.
• Independent Contractors and Freelancers: Although not always required, independent contractors and freelancers may obtain an EIN to separate business and personal finances, particularly if they hire subcontractors or issue 1099 forms.
• Estates Represented by Executors: Executors handling an estate apply for an EIN to manage the estate’s finances and tax obligations.
• Entities Changing Structure: Businesses that change their structure (e.g., from sole proprietorship to corporation) require a new EIN.

Refer to this table for a quick glance into EIN requirements

Obtaining an EIN is a crucial step for many business activities, ensuring compliance with IRS regulations and facilitating smooth business operations.

How to Apply for an EIN?

Applying for an Employer Identification Number (EIN) is simple and can be done online, by fax, or by mail:

Online: Go to the IRS EIN application online page. Click on “Apply For EIN Online Now” and follow the prompts.

Fax: Complete Form SS-4 and fax it to (855) 215-1627. The IRS processes faxed applications within four business days.

Mail: Complete Form SS-4. Mail the completed form to the “Internal Revenue Service Center”. If you are within the United States use “EIN Operation Cincinnati, OH 45999.” If you are outside the United States use “EIN International Operation Cincinnati, OH 45999.” You can receive your EIN by mail in about four (4) to six (6) weeks.

What if I don’t have a Social Security number? Can I still get an Employer Identification Number (EIN)?

Yes, you can still obtain an Employer Identification Number (EIN) even if you don’t have a Social Security Number (SSN). The process differs slightly depending on your specific circumstances:

1. For U.S. Citizens and Residents Without an SSN:

• If you are a U.S. citizen or resident and don’t have an SSN, you will typically need to apply for an SSN before applying for an EIN.
• However, if for some reason you are unable to obtain an SSN, you can still apply for EIN by providing a reason on the EIN application (Form SS-4) explaining why you don’t have an SSN.

2. For Non-U.S. Individuals or Entities:

• Use an ITIN: If you are a non-U.S. individual and don’t have an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7. Once you have your ITIN, you can then apply EIN.
• Apply Directly for an EIN: Non-U.S. individuals and entities without an SSN or ITIN can still apply for EIN directly. The IRS allows foreign persons to obtain EIN by filling out Form SS-4. In this case, you would leave the SSN field blank and instead provide a reason for why you need the EIN, such as “Foreign entity without any U.S. operations.”
• Apply by Phone: If you’re a non-U.S. resident or entity, you can also put in an application for EIN by calling the IRS directly at their international number. You will need to provide the necessary information over the phone.

3. EIN Application without SSN or ITIN:

• If you don’t have an SSN or ITIN and you’re applying for an EIN, when filling out Form SS-4, you can leave the SSN/ITIN fields blank and attach a statement explaining why you don’t have one.
• The IRS processes these applications manually, so it may take a bit longer, but you can still obtain an EIN.

In summary, lacking an SSN does not prevent you from obtaining an EIN, especially if you are a non-U.S. person or entity. You can use an ITIN or apply directly to the IRS without an SSN.

FormPros can help!

Applying for an Employer Identification Number (EIN) through our service is a simple and hassle-free process. We take care of all the complexities, ensuring you receive your EIN quickly and efficiently. Here’s how you can apply for an EIN with FormPros:

Step 1: Fill Out the Questionnaire

Start by filling out our easy-to-use online questionnaire. The questionnaire gathers essential information about your business, such as:

• Business Name: The legal name of your business entity.
• Business Structure: Whether you are a sole proprietor, partnership, corporation, LLC, etc.
• Responsible Party: The individual or entity that controls, manages, or directs the applicant entity and the disposition of its funds and assets.
• Business Address: The physical location of your business.
• Reason for Applying: Such as starting a new business, hiring employees, banking purposes, etc.
• Date Business Started: When your business was legally formed or started operations.
• Principal Activity: The primary nature of your business (e.g., retail, manufacturing, services).

Step 2: Review and Submit

Once you have completed the questionnaire, review your information carefully. Accuracy is crucial to avoid delays in processing your EIN application. After reviewing, submit the completed questionnaire through our secure online portal.

Step 3: We Process Your Application

After receiving your questionnaire, our team of experts will review your information to ensure everything is in order. We will then prepare and submit your EIN application to the IRS on your behalf. Our experience and expertise in handling EIN applications minimizes the risk of errors and expedites the approval process.

Step 4: Receive Your EIN

Upon approval, we will promptly send your EIN to you via email and/or postal mail, based on your preference. You can start using your EIN immediately for various business activities, such as opening a business bank account, filing taxes, and hiring employees.

Why is an EIN Crucial to Your Business?

When it’s mandated by the IRS, you don’t have a choice. Even when not required, an EIN simplifies business operations.

Privacy and Security: An EIN separates your personal and business finances. It keeps your Social Security number private and reduces the risk of identity theft.

Licenses and Permits: Many states require an EIN to issue business licenses. You’ll often need this identification number for applying for local, state, and federal permits.

Beneficial Ownership Report: The federal government requires that businesses file a Beneficial Ownership Information Report (BOIR), which requires an EIN.

Business Banking: Banks often ask for a federal tax identification number to open a business account, which is necessary to apply for loans.

Hire Employees: An EIN is essential for hiring employees and setting up payroll systems.

Tax Purposes: The EIN is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. It’s necessary for filing federal and state taxes, and it helps ensure that your business complies with tax laws. If you are required to have an EIN and don’t have it before you file your taxes, you could open yourself up to all kinds of tax penalties.

Vendor Relations: Some vendors and suppliers require an EIN to establish accounts. This number can also be used when providing Form W-9 to other businesses that need to report payments made to you.

Legal Structure: If your business is structured as a corporation or partnership, an EIN is necessary. Even if you operate as a sole proprietorship, obtaining an EIN can help protect your personal social security number.

What’s the difference between filing taxes with a SSN vs EIN?

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Apply for an Employer Identification Number FAQs

• Can I get an EIN if I don't have a Social Security Number (SSN)?
  Yes, you can obtain an EIN without an SSN by filling out IRS Form SS-4 and mailing or faxing it to the IRS. You can also apply through an authorized third-party service provider.
• How long does it take to get an EIN?
  If you apply online, you can receive your EIN immediately. Applications by fax typically take about four business days, while mail applications can take up to four weeks.
• Can I apply for an EIN before forming my business entity?
  No, you should apply for an EIN after your business entity is legally formed, as the IRS requires the legal name and structure of the business to issue the number.
• Do I need an EIN for a sole proprietorship?
  While not mandatory for sole proprietors without employees, obtaining an EIN can be beneficial for separating personal and business finances and simplifying tax filings.
• Is there a fee to apply for an EIN?
  No, applying for an EIN directly through the IRS is free of charge.
• Can a non-U.S. resident apply for an EIN?
  Yes, non-U.S. residents can apply for an EIN by submitting Form SS-4 via fax or mail, as they cannot use the online application.
• Can I use the same EIN for multiple businesses?
  No, each business entity requires its own unique EIN.
• What information do I need to apply for an EIN?
  You will need the legal name of the business, the responsible party’s name and SSN or ITIN, the business address, and the type of business entity.
• Can I change the name associated with my EIN?
  Yes, you can change the business name associated with your EIN by notifying the IRS. The procedure varies depending on your business structure.
• Do I need a new EIN if I change my business structure?
  Yes, significant changes in business structure, such as moving from a sole proprietorship to a corporation, require a new EIN.
• Can I apply for an EIN by phone?
  You can apply for an EIN by phone if you are an international applicant. Domestic applicants must apply online, by fax, or by mail.
• What should I do if I lose my EIN?
  If you lose your EIN, you can find it on previously filed tax returns. You can also call the IRS Business & Specialty Tax Line for assistance.
• Can I use my EIN for personal purposes?
  No, an EIN is strictly for business use and should not be used for personal transactions or filings.
• What happens if I misuse my EIN?
  Misusing your EIN can lead to legal penalties, fines, and complications with the IRS. Always use your EIN for legitimate business purposes only.
• How do I cancel my EIN if I close my business?
  To cancel your EIN, write to the IRS and provide the complete legal name of the business, the EIN, the business address, and the reason you wish to close the account. Send this letter to the IRS office where you file your business returns.