How to Obtain an EIN for a Business

Step 1: Confirm Your Business Actually Needs One

Per the IRS, your business needs an EIN if you answer yes to any of the following: Do you have employees? Do you operate as a corporation or a partnership? Do you file employment, excise, or alcohol, tobacco and firearms tax returns? Do you have a Keogh retirement plan? A sole proprietor with none of these can generally use their own Social Security number for tax purposes instead. Even so, many sole proprietors get an EIN anyway, since most banks require one to open a business account, and using an EIN instead of your SSN on invoices and vendor forms keeps your personal number out of circulation.

Step 2: Form Your Business Entity First

If you're forming an LLC or corporation, get it approved by your state before applying for an EIN. The application asks for your entity's exact legal name, state, and formation date, and a mismatch with your state-approved filing can cause delays or rejection.

Step 3: Identify Your Responsible Party

Every EIN application names a "responsible party," the individual who ultimately owns or controls the business and has access to its funds and assets. You'll need that person's name and Social Security number or Individual Taxpayer Identification Number.

Step 4: Gather the Rest of the Application Information

Beyond your entity's name, state and formation date, the application asks for your mailing address, the reason you're applying, the type of entity, and the number of employees you expect to have in the next 12 months. Decide your entity's tax classification before you apply, since the application asks how you want to be taxed.

Step 5: Apply Online if You Qualify

Most U.S.-based applicants with a Social Security number or ITIN can use the IRS's free online EIN application, which issues the number immediately once you complete it. This is by far the fastest method and the one most domestic businesses use.

Step 6: Use Form SS-4 if You Don't Qualify for the Online Tool

If you don't have a U.S. principal place of business, or you otherwise don't qualify for the online system, apply using Form SS-4 instead. International applicants can call the IRS, fax the completed form, or mail it to the IRS's EIN International Operation in Cincinnati, Ohio. These methods take longer than the instant online application, so apply with enough lead time if a deadline depends on having the EIN in hand.

Step 7: Save Your Confirmation Notice

Once assigned, the IRS issues a confirmation notice, whether instantly online or later by mail for a phone, fax or mail application. Keep this with your permanent business records; banks and other institutions will typically ask to see it to confirm your EIN.

A Note on Applying for Multiple Businesses

The IRS limits each responsible party to one EIN issued per day, across every application method. If you're setting up more than one business entity at the same time, spread the applications across separate days rather than assuming you can get them all at once.

Keeping Your EIN Information Current

Getting the EIN is the start of an ongoing relationship with the IRS, not a one-time task. If your responsible party changes, for example because a controlling owner or officer changes, the IRS requires reporting that update on Form 8822-B within 60 days. See our guide on how to update business information with the IRS for other changes the IRS expects you to report. If your business is specifically an LLC, see our guide on how to get an EIN for an LLC for the LLC-specific version of this process.

A Sole Proprietor's Decision Isn't All or Nothing

Even if you're not required to get an EIN as a sole proprietor, weigh the practical reasons many get one anyway: most banks require an EIN rather than an SSN to open a business account, and using an EIN on client and vendor paperwork keeps your Social Security number private. It's a low-cost, free decision either way.

Name Mismatches Are the Most Common Delay

A mismatch between the legal name on your EIN application and your state-approved formation document is one of the most common reasons an application is rejected or delayed. Copy your entity's name exactly as the state approved it, including punctuation and the entity designator.

A Third Party Can File for You, but Doesn't Change Who's Responsible

You can authorize an accountant or formation service to complete the EIN application on your behalf using a signed third-party designee authorization, but this doesn't change who the IRS treats as the responsible party. If a service charges you a fee for this help, that fee is for their assistance, not a government charge, since the IRS itself never charges for an EIN.

This Is Not Tax Advice

Whether you need an EIN, and how to answer the tax-classification questions on the application, depends on your specific business structure and plans. Talk to a tax professional if you're unsure how to classify your business on the application or whether an EIN changes anything about how you're taxed.