How to Get an EIN
Everything You Need to Know About Employer Identification Numbers
Many businesses are required to have an Employer Identification Number (EIN). An EIN, also called a Federal Employer Identification Number (FEIN), is a tax ID number assigned to a business by the IRS for the purpose of filing taxes. You can think of it as a social security number for your business. Getting an EIN from the IRS is free and fairly straightforward. We’ll explain everything you need to know.
Do I Need an EIN?
Businesses that are required to have an EIN include:
- Partnerships
- LLCs with more than one member
- Corporations
- Tax-exempt organizations
- Estates and trusts
- All businesses with employees
- Businesses that will need to pay employment, excise, alcohol, tobacco, or firearms taxes
Some banks also require an EIN to open a company bank account.
How to Obtain an EIN Number
For US-based businesses, the easiest way to get an EIN number is online. You can apply for an EIN on the IRS website for free and receive your EIN within minutes.
Businesses cannot apply online if:
- They are based outside of the United States
- The owner(s) do not have a social security number or individual tax ID number (ITIN)
If your business can’t apply online, you can apply by phone, fax, or mail.
What information do I need to get an EIN?
To apply for an EIN, you’ll need to know:
- Your business structure (Such as LLC, corporation, general partnership, etc.)
- Your responsible party’s social security number or ITIN
NOTE: Your responsible party must be someone authorized to make financial decisions on behalf of your company. This is typically the business owner, principal officer, or a general partner.
Benefits of Having an EIN
Even if your business isn’t required to have an EIN, there are a couple reasons it may be beneficial to get one:
1. Opening a business bank account
Some banks require a business to have an EIN in order to open a business bank account. Having an EIN and a company bank account makes it easier to keep personal and business finances separate.
2. Protecting your identity
Having an EIN reduces your need to share your social security number on forms. You’ll be able to use your EIN instead, which reduces your risk of identity theft.
How to Find Your EIN Number
If you lose your EIN, there are a few ways to find it:
1. EIN confirmation letter
The IRS sends a confirmation letter after the EIN is approved. The confirmation is sent electronically for online filings, or by mail or fax for paper filings. Check to see if you have this letter in your files, as it contains your EIN number.
2. Tax returns and other business documents
Review past tax returns and other business documents, such as business loan applications, which may contain your EIN.
3. Call the IRS
If you still can’t find your EIN, you can call the IRS Business and Specialty Tax Line. You will need to know the tax ID number for your responsible party.
When Do I Need a New EIN?
You generally need a new EIN if your business structure or ownership changes. For example, if you are converting a corporation to an LLC (or vice versa). Or if you were formerly a sole proprietor but are forming a partnership with someone else.
You don’t need a new EIN if you’re only changing your business name or address.
EIN Frequently Asked Questions
Getting an EIN directly from the IRS is free.
It’s a good idea to apply for your LLC before you apply for an EIN. If you apply for an EIN before you form your company, there’s a chance that you’ll accidentally get an EIN for another company that has the same business name.
Sole proprietors aren’t required to have an EIN, unless they have employees or are liable for certain excise taxes. However, getting an EIN might be required to open a business bank account.
The IRS turnaround time for EINs depends on how you apply:
Online: Usually within minutes
By fax: Around 4 business days
By mail: Around 4 weeks
EIN numbers don’t expire. They are not re-used and don’t need to be renewed.