How Do I Get an EIN Number From the IRS?

The IRS issues EINs online in minutes, for free. Here is who needs one, what to have ready, and how to apply step by step.

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Filed

How do I get an EIN number? You go straight to the IRS. The IRS runs an online tool that issues an EIN in minutes, at no cost. You never have to pay a fee for an EIN. Beware of websites that charge for one. They sell you something the IRS hands out for free.

Your EIN is your business's federal tax ID number. It works like a Social Security number, but for your business. You use it to file required tax returns and information returns, and to pay federal taxes.

Who needs an EIN

Businesses, organizations and some retirement trusts need an EIN to handle their taxes. The IRS says one is generally required to hire employees. Running a partnership or corporation also calls for one. Paying sales and excise taxes takes one as well. And you need one to change business structures or ownership. For a trust, see how to get an EIN for a trust.

Form your business first

Do not apply before your entity exists. The IRS says to set up your corporation or LLC with the secretary of state before you ask for an EIN. Leave that step out, and the IRS may hold up your application.

If you formed an LLC, your state may have its own filings too. Colorado has its Periodic Report, and Kentucky lists its LLC fees on one page.

What to have ready

Before you open the online tool, gather a few things.

You need the Social Security number or taxpayer ID number of the person in control of your business. The IRS calls this person the responsible party. That is the person in charge of the business. You also need your legal business name. It must follow certain rules for how it is written.

Applying online, one step at a time

The online tool is the quickest way to get your number. The IRS says you can use it to get an EIN directly from the IRS in minutes for free.

First, confirm you meet the rules for the tool. Second, answer the questions. Then submit the application. If it is approved, the IRS will issue your EIN immediately online. Once the IRS verifies you, your nine-digit number is ready right away.

The one-session rule

Here is the part that trips people up. You must complete the application in one session. You can't save it for later. If you sit still for 15 minutes, the application expires. Then you must start over.

So do your gathering first. Then sit down and finish the whole thing in one go.

Who can use the online tool

You can use the tool if your group was formed or created in the United States or U.S. territories. The main place where you run the business must be inside the U.S. or its territories. You have to be the person who controls the entity, or someone it has authorized to act for it. You also need that person's Social Security number or individual taxpayer ID number.

The tool is off limits when you run your business from somewhere outside the U.S. You also can't use it if you are applying with an EIN, unless you are a government entity.

Applying by phone, fax or mail

Can't apply online? The IRS says you can apply by phone, fax or mail. Run your business from another country? Then phone, fax or mail are your options for applying. An LLC can also apply by filing Form SS-4.

If a third party applies for you, they must have signed authorization to apply.

After you're approved

Print the letter that confirms your EIN and keep it with your records. Do it right away, while you are still in the session.

Does a single-member LLC need an EIN?

This one confuses a lot of owners. A single-member LLC that does not choose to be taxed as a corporation is a disregarded entity. Its activities should be reflected on its owner's federal tax return.

A single-member disregarded LLC with no employees and no excise tax bills does not need an EIN. But an LLC will need an EIN if it has any employees or must file any excise tax forms. In fact, most new single-member LLCs of this kind will need to get an EIN. A single-member LLC can elect to be treated as a corporation by filing Form 8832.

If you didn't request an EIN, or yours was stolen

Once in a while, someone may ask for an EIN on your behalf for a real business reason. Did you check, and no one asked for it? Report it with the IRS's Business Identity Theft Affidavit. If your EIN was stolen, follow the IRS's steps to report business identity theft.

When you'd need a new EIN

In general you need a new EIN when your business's ownership or structure changes. Check with the IRS to determine whether you need to change or replace your EIN.

One more thing. You can't cancel an EIN. It is an assigned, permanent federal ID number. You can apply for only one EIN per responsible party per day. Need more than one? Spread them across days.

Sources

Same schedule
  1. How to Get an EIN Number for a Trust
  2. How to Form an LLC and Get a Free EIN Yourself
  3. How to Apply for an EIN for an LLC
  4. How Long Does It Take to Get an EIN Number?
  5. How to Get an IRS EIN Online for Free
  6. How to Apply for an EIN Number From the IRS