How to Apply for an IRS EIN: Online, By Fax, and By Mail

How to Apply for an IRS EIN

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States. You can think of it as a Social Security number for your business. It is required for filing taxes, hiring employees, opening a business bank account, and applying for business licenses. Applying for an EIN is free, and the IRS offers several methods to complete the process.

Online Application: The Fastest Method

The preferred and quickest way to apply for an IRS EIN is through the IRS website. The online application is available Monday through Friday, from 7:00 a.m. to 10:00 p.m. Eastern Time. You must complete the form in one session, as there is no save function. Once you submit the information, the IRS validates it immediately and issues the EIN instantly.

The online portal is designed for the primary officer or owner of the business. You will need to answer questions about the entity type, the reason for applying, and the principal activity of the business. Because the system is real-time, you will not receive a confirmation letter by mail unless you specifically request one, but the number is active for immediate use upon issuance.

Fax and Mail: Traditional Alternatives

If you cannot apply online, the IRS accepts applications via fax and mail. For fax submissions, you complete Form SS-4 and send it to the designated IRS fax number for your state. The IRS typically processes faxed applications and returns the EIN within four business days. You must include your fax number on the form so the IRS can send the confirmation back.

Applying by mail involves mailing the completed Form SS-4 to the IRS address for your state of principal business. This method is the slowest. You should allow four to five weeks for processing. If you need the EIN sooner, the online or fax method is strongly recommended. Keep a copy of the submitted form for your records.

Information Required for the Application

Before you start the application, gather the necessary information to avoid delays. The IRS requires specific details about the business entity and the person applying. Missing or incorrect information is the most common reason for rejection or delay.

• Legal Name: The exact legal name of the business entity as registered with the state.
• Trade Name: Any Doing Business As (DBA) name, if applicable.
• Entity Type: Whether the business is a sole proprietorship, partnership, corporation, LLC, or estate/trust.
• Responsible Party: The name and Social Security Number (or Individual Taxpayer Identification Number) of the person who controls or owns the entity.
• Reason for Applying: Such as starting a new business, hiring employees, or opening a bank account.
• Principal Activity: A description of the primary business activity and the date the business was started or acquired.
• Number of Employees: The expected number of employees within the next 12 months.

Who Needs an EIN?

Not every business needs an EIN, but the requirement is common. Generally, a business needs an EIN if it has employees, operates as a corporation or partnership, files certain tax returns like Excise, Employment, or Alcohol, Tobacco and Firearms taxes, or withholds taxes on income paid to a non-resident alien. Sole proprietors without employees may use their Social Security Number instead, but an EIN is still useful for privacy and separating business and personal finances.

Estates and trusts that must file a tax return also require an EIN. Non-profit organizations, limited liability companies, and government agencies all need one. The IRS does not limit the number of EINs an individual can obtain, but you can only receive one per responsible party per day.

Using the EIN After Issuance

Once you have the EIN, you can use it immediately for most purposes, including e-filing tax returns and opening a business bank account. The IRS mails a confirmation letter, known as CP 575, to the address on the application. This letter serves as the official proof of the EIN. If you applied online, you can print the confirmation page at the end of the session. Keep this document in a secure place, as the IRS will not reissue the EIN or provide it over the phone to third parties.