An Employer Identification Number (EIN) is essential for businesses or nonprofits operating in the United States to maintain compliance with the IRS. This resource page will give you a complete overview of what an EIN is, who needs it, how to apply, and the importance of an EIN for your business or organization.
Table of Contents
What is an EIN?
An Employer Identification Number (EIN) is a unique 9 digit number assigned by the Internal Revenue Service (IRS) to business organizations operating in the United States for the purpose of identification and tax administration.
Who needs an EIN?
You need an EIN if any of the following apply:
- If you are operating any of these entities, you are required to obtain an EIN.
- Partnership
- Limited liability company (LLC)
- Corporation
- Tax-exempt organization
- Estate
- Trust (except certain grantor-owned revocable trusts)
- Retirement plan or individual retirement account (IRA)
- Real estate mortgage investment conduit
- Farmers' cooperative
- If you have an employee.
- If you file employment, excise, or alcohol, tobacco, and firearms tax returns.
- If you withhold taxes on income, other than wages, paid to a non-resident alien.
Why is EIN Important?
- Tax Reporting: The IRS uses Employer Identification Number to track filings of Form 990 series
- Business Operations: An EIN is used to hire employees, open business bank accounts, and to apply for business licenses.
- Separation from Personal Identity: Using an EIN helps business owners to keep their personal Social Security Number private and separate from business activities.
- Required for Many Entities: EIN is required for many types of legal entities, including nonprofits that file IRS Form 990, Form 990-EZ, Form 990-N, Form 990-PF and Form 990-T
Before You Apply for an EIN
- Form Your Entity First: Register your business or nonprofit with your state before applying for an EIN.
- Use the Legal Name: Enter your business’s legal name as registered (avoid using trade names or abbreviations).
- Responsible Party: The EIN application must list the person who controls the entity and its assets. This person’s Social Security Number or ITIN is required
How to apply for EIN?
You can apply for an Employer Identification Number (EIN) through several methods which are free and provided directly by the IRS.
1.Online Application
Who can use this online application?
- Your main place of business must be in the U.S. or its territories.
- You must be the responsible party or an authorized representative with control over the entity.
- You need the responsible party’s Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
Steps to file EIN online
Step 1: Visit the IRS EIN assistant page.
Step 2: Answer the questions and submit your application
Step 3: The EIN will be issued immediately after submission
2.By Fax
- Fill out Form SS-4 (Application for Employer Identification Number)
- Fax the completed SS-4 form to the correct IRS fax number.
- If you provide a return fax number, you will receive your EIN within 4 business days.
3.By Mail
- Complete the Form SS-4.
- Mail the form to the IRS address.
- Processing by mail takes about 4 weeks
4.By Phone (International Applicants Only)
- International applicants can call 267-941-1099 between 6 a.m. and 11 p.m. Eastern Time, (Monday to Friday).
- The Person making call should be an authorized individual to receive the EIN and should answer the questions related to Form SS-4.
Mail address or Fax of Form SS-4
Mail or fax your Form SS-4 to the below address:
| Business or legal residence location | IRS Address |
|---|---|
| One of the 50 states or the District of Columbia | Internal Revenue Service Attn: EIN Operation Cincinnati, OH 45999 Fax: 855-641-6935 |
| If your principal place of business is outside the U.S. | Internal Revenue Service Attn: EIN International Operation Cincinnati, OH 45999 Fax: 855-215-1627 (within the U.S.) Fax: 304-707-9471 (outside the U.S.) |
Form needs to be filed after obtaining an EIN for exempt organizations:
After getting an EIN for your tax-exempt organization, file the below applicable form based on your organization gross receipt and total assets.
- Form 990-N - Gross receipts ≤ $50,000
- Form 990-EZ - Gross receipts < $200,000 and total assets < $500,000
- Form 990 - Gross receipts ≥ $200,000 or total assets ≥ $500,000
- Form 990-PF - If you are a private foundation, regardless of income or assets
- Form 990-T - report the unrelated business income of $1000 or more.
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Frequently Asked Questions
1. What if I lost my EIN?
2. When do I need a new EIN?
3. Can I use EIN Finder for any business?
4. Does an EIN expire?
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