How to Get an EIN: A Step-by-Step Guide
Getting an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a crucial step for many businesses in the United States. Whether you're starting a corporation, partnership, LLC, or even a sole proprietorship with employees, you'll likely need one. This comprehensive guide will walk you through the process of obtaining your EIN quickly and efficiently.
What is an EIN?
An EIN is a unique nine-digit number assigned by the IRS. It's used to identify your business for tax purposes. Think of it as your business's Social Security Number. You'll need it to:
- Open a business bank account: Most banks require an EIN before opening a business account.
- File business tax returns: You'll use your EIN to file various tax forms, including payroll taxes.
- Hire employees: You need an EIN to file payroll taxes for your employees.
- Obtain business licenses and permits: Some state and local authorities may require an EIN.
How to Apply for an EIN
There are several ways to apply for an EIN, each with its own advantages and disadvantages.
1. Applying Online (IRS Website)
This is the fastest and easiest method. The IRS's online application is available 24/7, and you'll receive your EIN instantly.
Steps:
- Go to the IRS website: Navigate to the official IRS website and locate the EIN application. (Note: I cannot provide direct links to government websites. A simple Google search for "IRS EIN application" will direct you to the correct page.)
- Complete the application: You'll need to provide basic information about your business, such as your legal business name, type of business, and contact details.
- Instant EIN issuance: Upon successful submission, your EIN will be displayed immediately. Print a copy for your records.
2. Applying by Mail (Form SS-4)
This method is slower than the online application. You'll need to download Form SS-4, complete it, and mail it to the IRS. This option is suitable if you don't have internet access.
Steps:
- Download Form SS-4: (Again, a Google search for "IRS Form SS-4" will lead you to the correct download.)
- Complete the form accurately: Fill out all required information legibly.
- Mail the form: Send the completed form to the appropriate IRS address. (The correct address is specified on the form itself.)
- Wait for your EIN: Expect to receive your EIN by mail within 4-5 weeks.
3. Applying by Fax (Not Recommended)
The IRS generally discourages applying for an EIN via fax, as it's less secure and less efficient than the online method. However, if other options are unavailable, it is possible. Check the IRS website for the most current fax number and instructions. This method is not recommended.
What Information You'll Need
Regardless of the application method you choose, you'll need the following information readily available:
- Legal business name: This is the name your business is officially registered under.
- Business type: Sole proprietorship, partnership, LLC, corporation, etc.
- Principal business activity: A brief description of what your business does.
- Your personal information: Name, address, phone number, etc.
- If applicable, the name and address of the responsible party: This is especially important for corporations and other entities with multiple owners.
Troubleshooting Common Issues
- Application rejected: Carefully review the rejection notice to understand the reason and resubmit the application with the necessary corrections.
- EIN not received: If you haven't received your EIN within the expected timeframe, contact the IRS directly for assistance.
- Incorrect information: Double and triple check all the information you provide on your application to avoid delays or complications.
By following these steps and paying close attention to detail, obtaining your EIN should be a straightforward process. Remember to keep your EIN in a safe place, as you will need it for numerous business-related activities.
