To apply for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, you can follow these steps:
- Determine if you need an EIN: You need an EIN if your business pays employees, operates as a corporation or partnership, files tax returns for employment, excise, or alcohol, tobacco, and firearms, withholds taxes on income, other than wages, paid to a non-resident alien, uses a Keogh Plan, or works with certain types of organizations.
- Gather necessary information: You’ll need to provide your business entity type, full legal name and personal taxpayer identification number (SSN or ITIN), legal name of your business and state where the articles of incorporation were filed, business address, primary reason for applying, and date you started or acquired your business.
- Apply online: The IRS lets you apply for an EIN online, which is the easiest and fastest way to get an EIN. You’ll receive your EIN immediately once you submit your application.
- Apply by mail, fax, or phone: If you’re not eligible to apply online, you can apply by mail, fax, or phone. Fax applications take around four business days to process, and mailed applications may take four to five weeks.
- Understand the benefits: An EIN is not only required for certain business activities, but it also helps separate your business and personal finances, open a business bank account, or apply for a business loan.
Remember, applying for an EIN is free, and you should do it right after you register your business.
