How to Correctly Fill Out an EIN Application

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number issued by the Internal Revenue Service (IRS) to identify a business entity. This number functions much like a Social Security Number (SSN) for an individual, serving as a permanent federal tax ID for businesses. Obtaining an EIN is a fundamental step for various types of entities, including corporations, partnerships, and businesses with employees. It is used for tax reporting, opening business bank accounts, and other critical financial and legal activities.

Gathering Required Information

Before initiating the EIN application, gather all necessary details for a smooth and accurate submission. The full legal name of the entity is required, which should precisely match the name registered with the relevant state authority. The business’s physical address is also needed, as post office box numbers are generally not accepted.

Identifying the correct type of entity is important, as the application process and subsequent tax obligations vary. This includes whether the entity is a sole proprietorship, partnership, corporation, Limited Liability Company (LLC), or non-profit organization. The reason for applying for the EIN must also be specified, with common reasons including starting a new business, hiring employees, or changing the organization’s legal structure.

The application requires details of the “responsible party,” an individual who controls, manages, or directs the entity and its finances. This person’s full name and their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) are mandatory.

Further information includes the date the business started or was acquired. A description of the business’s primary activities helps the IRS classify the entity for tax purposes. If the business anticipates having employees, an estimate of the number of employees expected in the coming year may also be requested.

Completing the Application

With all necessary information assembled, complete the EIN application. The online method is the most common and efficient choice. Begin by navigating to the official IRS website and locating the online EIN application section. Users then select their business’s legal structure and the reason for their application, which guides them through the subsequent questions.

The online system presents a series of prompts where the previously gathered information is accurately entered. This includes the responsible party’s name and SSN or ITIN, the entity’s legal name, physical address, and the date the business commenced operations. Specific details about the business activity and, if applicable, the number of employees are also input.

Review all entered information for accuracy before submission, as errors can cause delays. The online application typically provides the EIN immediately upon successful submission, allowing for instant use. This online tool is generally available Monday through Friday, from 7:00 a.m. to 10:00 p.m. Eastern Time.

For those unable to use the online system, alternative application methods are available. Form SS-4, the “Application for Employer Identification Number,” can be downloaded from the IRS website and completed manually. This form can then be submitted via fax or mail. Faxing the completed Form SS-4 typically results in receiving the EIN within approximately four business days. Mailing the application is the slowest method, with processing times usually taking around four weeks.

After Applying: Receiving and Using Your EIN

Upon successful submission of your EIN application, the method of receipt and timeframe vary. If the online application was used, the EIN is typically issued immediately, allowing you to view and print your official confirmation letter (CP 575). For applications submitted by fax, the IRS generally faxes back the EIN within four business days, provided a return fax number was included. Opting for mail submission means a longer waiting period, with the EIN usually arriving in about four to six weeks.

Once obtained, the EIN is a permanent and unique identifier for your business. It is important to keep it secure. This nine-digit number serves multiple functions for your entity. It is primarily used for federal tax purposes, including filing income tax returns, employment taxes, and excise taxes.

The EIN is also necessary for opening a dedicated business bank account, which helps maintain clear separation between personal and business finances. Furthermore, it is often required when applying for business licenses and permits, as well as for establishing payroll to hire employees.