Getting an Employer Identification Number (EIN) from the IRS is a crucial step for businesses operating in the United States. This unique nine-digit number is essentially a Social Security number for your business, allowing you to legally hire employees, open business bank accounts, and handle various tax obligations. The good news is that obtaining an EIN is straightforward and, importantly, free directly from the IRS. This guide will walk you through exactly How To Get an EIN quickly and efficiently online, ensuring you avoid common pitfalls and misleading paid services.
Understanding the IRS Online EIN Application Tool
The IRS provides a dedicated online tool designed to streamline the EIN application process. It’s important to be aware of a few key aspects before you begin to ensure a smooth experience. The application must be completed in a single session as you cannot save your progress and return later. The session will also time out after 15 minutes of inactivity, requiring you to restart. Therefore, it’s wise to gather all necessary information beforehand. Once your application is approved, which often happens immediately, you should print your EIN confirmation letter for your records.
Who is Eligible to Apply Online for an EIN?
The IRS online tool is designed for specific applicants. You can use this online service if:
- Your business’s primary location is situated within the United States or any U.S. territories.
- You are the responsible party who holds control over the entity, or you are an authorized representative. The IRS defines a “responsible party” as someone with significant control over the entity.
- You possess a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN) belonging to the responsible party.
Conversely, you cannot use the online tool in the following circumstances:
- If your principal business location is outside of the United States. In this case, you will need to apply for an EIN via phone, fax, or mail as detailed on the IRS website for international applicants.
- If you are attempting to apply using an existing EIN. The IRS clarifies that only government entities are permitted to apply using an EIN.
Information You’ll Need to Get Started
Before you start the online application, ensure you have the following information readily available:
- Details about your business structure (sole proprietorship, partnership, corporation, LLC, etc.)
- The principal business activity
- The responsible party’s information (name, SSN or ITIN, address)
- The business address
Step-by-Step Guide: Applying for Your EIN Online
Ready to get your EIN? Here’s how to do it:
- Access the IRS EIN Online Tool: Navigate to the official IRS website and find the EIN application page, or directly access it through the “Apply for an EIN” link.
- Begin the Application: Click on the “Apply Online Now” button to start your application session.
- Answer the Questions: The online tool will guide you through a series of questions about your business. Answer each question accurately and completely.
- Review and Submit: Carefully review all the information you have entered before submitting your application.
- Receive Confirmation: If your application is successful, you will receive your EIN immediately online. Print and save your confirmation notice.
Tool Availability and Application Limits
Keep in mind the IRS online EIN application tool has specific hours of operation. It is available Monday through Friday, from 7 a.m. to 10 p.m. Eastern Time. Additionally, there is a daily limit: you can apply for only one EIN per responsible party per day using this online tool.
When is the Right Time to Get an EIN?
Timing is important when applying for an EIN. If you are establishing a legal entity such as an LLC, partnership, corporation, or tax-exempt organization, it’s crucial to form your entity with your state government first, before applying for an EIN. You can find links to state government websites for business formation on the IRS website. Completing state-level formation first can prevent delays in your EIN application.
Generally, businesses and organizations require an EIN in various situations, including when they:
- Hire employees
- Operate as a partnership or corporation
- Need to pay sales and excise taxes
- Undergo changes in business structure or ownership
- Administer specific types of trusts, retirement plans, and estates
Once you have obtained your EIN, remember your responsibility to file necessary tax returns and information returns.
Alternative EIN Application Methods
If you are unable to use the online tool due to eligibility restrictions or technical issues, the IRS provides alternative methods to apply for an EIN. You can find information on how to apply by phone, fax, or mail on the IRS website section dedicated to other application methods.
Beneficial Ownership Information Reporting to FinCEN
It’s also important to be aware of new regulations regarding beneficial ownership information reporting. As of January 1, 2024, many corporations, LLCs, and similar entities operating in the U.S. are required to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who ultimately own or control the company. For detailed information on whether your company is required to report, who qualifies as a beneficial owner, and reporting deadlines, please visit the FinCEN website. For further assistance or questions related to FinCEN requirements, you should contact FinCEN directly as the IRS cannot answer questions about FinCEN regulations.
By following these steps, you can confidently navigate the process of how to get an EIN online, ensuring your business is set up for success and compliance. Remember to always use official IRS resources and be wary of third-party websites that may charge unnecessary fees for this free service.
