How To Get An EIN For Your Business

What is an EIN, and does your business need one? Even if your business isn’t required by the IRS to have an EIN, there are a ton of business benefits to getting an Employer Identification Number.

Learn exactly how to get an employer identification number in this step-by-step guide to understanding and obtaining an EIN.

What Is An EIN?

EIN stands for Employer Identification Number and is a unique nine-digit number assigned to businesses by the IRS. An EIN is basically an SSN for a business. EINs are used as business identifiers for hiring employees, filing taxes, and more.

When Do You Need An EIN Number?

Whether your business is set up as a sole proprietor, corporation, partnership, or even a nonprofit, you may need an EIN.

Most business types are required to have an EIN by the IRS. The IRS says you must have an Employer Identification Number if:

• You hire employees
• You need to file an employment or excise tax return
• You want to establish a pension, profit-sharing, or retirement plan

In addition to these reasons, you’ll also need an EIN to:

• Apply for a business license
• Register your business
• Apply for a loan
• Get business insurance
• Open a business bank account
• Build your business credit

Sole proprietors and LLCs with no employees aren’t required to have an EIN and can use their Social Security Number as their identification. However, sole proprietors and LLCs without employees can still get an EIN, and it’s generally recommended to do so as using your SSN isn’t ideal.

It’s a good first step in separating your business from your personal assets and identity and sets your business up for success down the road as your business grows.

Who Is Eligible For An EIN?

To apply for an EIN you’ll need to meet the following EIN qualifications:

• Your principal business must be in the US or a US territory
• You must have a valid taxpayer identification number (SSN or ITIN)
• The applicant must be an individual (unless you’re a government entity)

How To Apply For An EIN

The easiest way to apply for an EIN is to apply online directly on the IRS website. The application is short and to the point, and once it has been completed, an EIN is issued to you immediately in the form of a letter sent to your email.

However, you can also apply via fax or via mail. International applicants can apply via phone. Details for all of these alternative application methods can be found on the IRS’s website.

How To Get An EIN In 7 Simple Steps

Getting an EIN is a fairly quick and easy process. Following these steps and knowing exactly what to expect from the application makes the process even easier.

Make Sure You’re Eligible For An EIN Before Applying

Before applying for an EIN, make sure you are eligible. The majority of US-based businesses will likely find that they meet the eligibility requirements, but this step is key to making sure you’re actually approved.

Understand That The Application Is Timed

Before completing an online EIN application with the IRS you also must know that:

• The application is timed
• You must complete the application in one sitting
• You have  only 15 minutes to complete the application

Don’t panic about this short window. It is likely designed this way to protect sensitive information like your SSN, and you can prepare your documentation ahead of time to make sure you have all the information handy during the actual application.

Prepare Your Documentation

Since you have such a short time to fill out your EIN application, having all of your paperwork ducks in a row ahead of time is a must. Here are the documents you need to apply for an EIN:

• Your legal name & SSN
• Your personal address
• Business address
• Business registration and/or incorporation documents
• State that business incorporation documents were filed (if applicable)
• Business start date or acquisition date
• The number of LLCs you have (if applicable)
• Business structure type
• Past business tax return
• Number of employees

Having this information on hand will make the process much simpler.

Head To The IRS Website To Submit Your Online Application

Once you have the proper information gathered, navigate to the IRS website to fill out the application directly online (unless you are an international business, in which case, you’ll need to call instead).

Select Your Business Type & Reason For Applying

You’ll need to select your business type (LLC, sole proprietor, partnership, etc.) and a primary reason for applying for an EIN. Common reasons that businesses select are hiring employees, starting a business, purchasing an existing business, opening a business bank account, etc.

Fill Out The Required Application Information

Next, you’ll be presented with a number of fields and questions to fill out. The documents you prepared should help immensely in finding the information you need to fill out this portion of the application.

Submit Your Completed Application Within 15 Minutes

Once your application is filled out, quickly double-check that all of the information provided is correct and press submit!

Applying online, you should receive an application decision immediately.

Once you have received your digital or physical EIN confirmation letter from the IRS, keep it somewhere safe. Not only is this information sensitive, you are going to need it for many business processes including opening accounts, filing taxes, and more.

How To Check The Status Of Your EIN Application

The easiest way to get a quick response on your EIN application is to submit the application online. If you apply online, you’ll get your answer immediately and won’t have to wait for the status of your application.

If you apply via fax, you can expect a 4-day turnaround time. If you apply via mail, you can expect a 4-week turnaround time. If you apply over the phone, application approval times vary as signatures may be required.

You can call into the IRS for information if your application decision is taking longer than the expected turnaround window.

What If Your EIN Application Is Denied?

You can be denied an EIN number, but this usually means your business already has an EIN or you didn’t submit the correct information with your application and will need to re-apply.

What If I Lost My EIN?

If you’ve already applied for an EIN and lost or forgotten the number, there are several ways you can try to find your EIN and avoid re-applying.

• Look over your business documents: Check your physical/virtual business tax returns, your EIN confirmation letter, an old 1099 you gave to contractors, your business credit report, etc.
• Call the IRS: Sometimes, you need to go straight to the source and give the IRS a call. They do typically have long hold times, so keep that in mind.
• Ask someone else: Check in with your accountant, the account manager of your business bank account, consult your accounting software, or any organization you had to register your business with.

Still can’t find your EIN? Read our article about finding your EIN for more solutions to your problem!

Employee Identification Number FAQs