How to Get a Tax ID Number for Your Business
Learn the steps to obtain a tax ID for your business efficiently, including required info, application methods, and processing times.
Understanding how to obtain a tax identification number (TIN) is essential for business owners, as it serves as a unique identifier for their company with the government. This number is necessary for filing taxes, opening bank accounts, and hiring employees. While the process may seem complex, securing a TIN is straightforward with proper guidance.
Required Information
To apply for a tax identification number, business owners must gather specific details about their business entity. The type of information required depends on the business structure—such as sole proprietorship, partnership, corporation, or limited liability company (LLC). For instance, a sole proprietor provides their Social Security Number (SSN), while a corporation submits its articles of incorporation.
The IRS also requires information about the responsible party, the individual who manages or controls the entity. This person must provide their SSN, Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN) to ensure accountability in the business’s financial activities.
Other required details include the business’s legal name, trade name (if applicable), mailing address, and the date the business was started or acquired. Businesses with employees must disclose the number of employees expected within the next 12 months, as this impacts employment tax requirements. Additionally, the principal activity of the business, along with the primary products or services offered, must be defined for IRS classification purposes.
Application Methods
After compiling the required information, business owners can apply for a tax identification number through several methods, each with distinct advantages.
Online
Applying online is the fastest option. The IRS offers an online application system, the EIN Assistant, available to businesses with a principal location in the U.S. or U.S. Territories. The system operates Monday through Friday, 7 a.m. to 10 p.m. Eastern Time, and issues the EIN immediately upon completion. The responsible party must complete the application in one session, as the system does not allow saving progress.
For those who prefer a physical application, Form SS-4, “Application for Employer Identification Number,” can be completed and mailed to the appropriate IRS address based on the business location. Mail applications typically take four to five weeks to process. Using certified mail to track delivery is recommended, and accuracy in completing the form is critical to avoid delays.
Phone
Phone applications are available exclusively for international applicants. Businesses without a principal location in the U.S. or U.S. Territories can contact the IRS during designated hours, Monday through Friday, 6 a.m. to 11 p.m. Eastern Time. An IRS representative will guide the applicant through the process and issue the EIN during the call. International applicants should ensure they have all required information ready and verify their mailing address for receiving the confirmation letter.
Processing Time and Confirmation
Processing time and confirmation vary by application method. Online applicants receive their EIN immediately, enabling quick access to activities like opening bank accounts or setting up payroll systems.
Mail applications take approximately four to five weeks, with the IRS sending a confirmation letter (CP 575) to the business’s mailing address. This document serves as official proof of the EIN and should be kept for future reference.
International applicants who apply by phone receive their EIN during the call. A confirmation letter will also be mailed to the applicant’s address. It is important for the responsible party to note the number during the call and confirm the mailing address to avoid delays. Maintaining updated contact information with the IRS is essential for receiving official correspondence promptly.