How to Apply for an EIN Number From the IRS
The IRS gives out EINs free and fast through its online tool. Here is the order to do things in, and what to have ready first.
You apply for an EIN number through the IRS, and the IRS does not charge for it. The online tool hands you the number in minutes. But the speed only works if you do things in order. Form your business with the state first. Then gather your facts. Then apply in one sitting.
What an EIN is
An EIN is a nine-digit federal tax ID number. The IRS says businesses, organizations and some retirement trusts need one to manage their taxes. You generally need an EIN to hire employees. You also need one to operate a partnership or corporation.
The number itself is free. The IRS says you never have to pay a fee for an EIN.
Who needs to apply
If you run a corporation or partnership, your business needs a federal tax ID number. The IRS says you generally need an EIN to hire employees.
The SBA's guide says you should apply for an EIN right after you register your business.
Step 1: Form your LLC or corporation first
Before you touch the IRS tool, form your entity with your state. The IRS says to form your corporation or LLC through the secretary of state before you apply for an EIN.
The IRS says your EIN application may be delayed if you don't form your entity with the state first.
Kentucky, for example, lists its LLC fees on one page. Colorado owners will also owe the state's Periodic Report. Those are state costs. The EIN itself still costs nothing.
Step 2: Confirm you can use the online tool
The online tool is not for everyone. The IRS says you can use the tool if you are a domestic organization formed or created in the United States or U.S. territories. Your principal place of business must also be in the U.S. or its territories.
You must be the right person, too. The IRS says you can use the tool if you're the responsible party in control of the entity, or its authorized representative. A third-party designee must have signed authorization to apply.
One more limit. The IRS says you can't use the tool if you are applying with an EIN, unless you are a government entity. And you can apply for only one EIN per responsible party per day.
Step 3: Gather the responsible party's tax ID
The IRS says you need the Social Security number or taxpayer ID number of the responsible party in control of your business or organization.
The IRS says the application expires after 15 minutes of inactivity, and you'll need to start over. There is no saved draft. The IRS says you must complete the application in one session and you can't save it for later.
Step 4: Complete the application in one session
Answer each question. Submit the application.
The IRS says to answer questions and submit the application, and if it is approved, the IRS will issue your EIN immediately online. The SBA's guide says your nine-digit federal tax ID becomes available immediately upon verification.
Step 5: Print your confirmation letter
The tool shows your EIN on screen when it approves you. The IRS says to print your EIN confirmation letter for your records.
Print it the same day.
If you can't apply online
Some owners cannot use the tool. If your principal place of business is outside the U.S., the IRS says to apply by phone, fax or mail. The IRS says you can apply by phone, fax or mail if you can't apply online.
Those routes still cost nothing.
How to avoid EIN scams
The IRS warns to beware of websites that charge for an EIN. The IRS says you can use its online tool to get an EIN directly from the IRS in minutes for free. You never have to pay a fee for an EIN, no matter what the checkout page says.
If you get an EIN notice you never asked for
Sometimes an EIN notice shows up for a business that never applied. The SBA's guide says occasionally someone may request an EIN on your behalf for a legitimate business reason. The IRS recommends confirming an unexpected EIN notice was not a legitimate request made on your behalf.
The SBA's guide says if your EIN was stolen, you should follow the IRS's steps to report business identity theft. The SBA's guide says the IRS recommends reporting an EIN you did not request with a Business Identity Theft Affidavit.