IRS Form SS-4: How to Get an EIN for Your Business

What an EIN is and who needs one

An EIN is a nine-digit federal tax ID for a business. You generally need one if you have employees, operate as a corporation or partnership, or file certain tax returns.

The IRS uses the EIN to identify business taxpayers. Corporations, partnerships and multi-member LLCs need one. So do businesses with employees and those that file excise or employment tax returns. Some sole proprietors and single-member LLCs without employees can operate under a Social Security number, but many get an EIN anyway.

Reasons to get one even when not required: keeping your Social Security number off invoices and vendor forms, opening a business bank account, and building business credit. See business tax ID numbers and how to build business credit.

Apply directly with the IRS, and avoid paid look-alikes

The EIN is free from the IRS. Online application is the fastest route, and you receive your number at the end of a completed session.

The IRS lets eligible applicants apply online during set hours, and you typically get the number immediately. You can also submit Form SS-4 by fax or mail, which takes longer. Applicants without a Social Security number or ITIN may have additional steps, so check the current instructions on IRS.gov.

Be careful with websites that charge a fee to "file" an EIN. The IRS does not charge. Start on IRS.gov and confirm the address in your browser before entering personal information.

Information you will need

You will need the legal name, entity type, responsible party's tax ID, address, start date, reason for applying and expected employees.

Prepare these before you start:

1. The legal name of the business and any trade name
2. Mailing address and, if different, physical address
3. Entity type: sole proprietor, partnership, corporation, LLC or other
4. The responsible party, who controls the entity, with their Social Security number or ITIN
5. The state where the business was formed and the start date
6. Reason for applying, such as starting a new business or hiring employees
7. Principal activity and the first date wages will be paid, if any

Your legal name must match your formation documents. If you have not formed the company yet, see how to register a business and what an LLC is.

What to do after you get the number

Save the confirmation letter, then use the EIN to open a bank account, set up payroll and tax accounts, and complete vendor forms.

Download and store your EIN confirmation letter. You will need it for banks and some lenders. Then:

• Open a business checking account in the company name.
• Register for state tax accounts and payroll if you have employees.
• Give the EIN to clients who send you a Form W-9 request.
• Use it when filing business returns.

If you later want S corporation treatment, you will need an EIN first. Read IRS Form 2553 and the entity guide.

Common mistakes

Typical errors include mismatched names, wrong entity type, applying twice and losing the confirmation letter.

Avoid these:

• Name mismatches. Make the EIN name match your state filing exactly.
• Wrong entity type. Picking the wrong box can create tax filing problems later.
• Duplicate applications. One entity generally gets one EIN. If you lose it, find it on old tax filings or call the IRS rather than applying again.
• Skipping the change notice. If your responsible party or address changes, notify the IRS as required.

If you are unsure about your classification, ask a CPA or attorney. A short consult costs less than fixing a filing error.

Why the EIN matters when you want funding

Funders match your EIN to your business, bank statements and tax filings. A clean, consistent identity makes applications easier.

When you apply for funding, the business name, EIN and bank account should line up. Inconsistent names across your bank, state registration and applications slow things down. Keep business and personal finances apart, as covered in separating business and personal finances.

ROI Funder considers businesses with 6+ months of operation, $20,000+ monthly revenue and 500+ FICO. A complete file is the application plus 3 months of business bank statements, and approved files can be funded the same business day. Options include working capital and a line of credit. A soft credit pull applies, and there is no obligation to accept an offer.