How to Apply for an EIN: Complete IRS Guide for New Businesses, LLCs, Corporations, and Nonprofits

Starting a business in the United States involves navigating federal tax requirements, and one of the first steps is obtaining an Employer Identification Number (EIN). The EIN, sometimes called a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your business for tax purposes. Whether you are forming a new LLC, a corporation, a partnership, or a nonprofit, obtaining an EIN is a critical step for compliance, banking, and hiring employees.

This comprehensive guide explains how to apply for an EIN, why it is necessary, IRS requirements, and practical steps to ensure your business is fully compliant.

1. What Is an EIN and Why You Need It

An EIN is a federal identification number for your business, similar to a Social Security Number for individuals. It serves several purposes:

• Filing federal and state taxes
• Opening a business bank account
• Hiring employees
• Applying for business licenses and permits
• Establishing a retirement plan

IRS Reference: Apply for an EIN – IRS

2. Who Needs an EIN

The IRS requires an EIN for most businesses under the following circumstances:

• LLCs with multiple members
• Businesses with employees
• Corporations and partnerships
• Nonprofit organizations
• Estates, trusts, or certain other entities

Even single-member LLCs without employees can choose to get an EIN to separate personal and business finances.

IRS Guidance: Do You Need an EIN?

3. Benefits of an EIN

Having an EIN simplifies compliance and financial management:

• Keeps personal Social Security Number private
• Allows separate business banking
• Required for payroll tax reporting
• Facilitates business credit
• Necessary for retirement and health plans
  
  
  
  

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  4. Step 1: Determine Your Business Structure

  Before applying for an EIN, confirm your business structure:

  • Sole proprietorship: May not require an EIN unless you have employees.
  • Single-member LLC: Can operate with your SSN but EIN recommended.
  • Multi-member LLC: EIN required.
  • Corporation or Partnership: EIN required.
  • Nonprofit organizations: EIN required.

  IRS Reference: Business Structures – IRS

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  5. Step 2: Apply Online via IRS

  The fastest way to obtain an EIN is through the IRS EIN Assistant online. Requirements:

  • Valid taxpayer identification (SSN, ITIN, or EIN)
  • Business formation information
  • Responsible party information

  Apply Online: IRS EIN Online Application

  Notes:

  • The online application is available Monday–Friday, 7 a.m. – 10 p.m. ET.
  • You receive your EIN immediately after completing the application.

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  6. Step 3: Apply by Mail, Fax, or Phone (International Applicants)

  For those who prefer offline methods:

  • Mail: Submit Form SS-4 to the IRS.
  • Fax: Fax Form SS-4 to the IRS office.
  • International applicants: Can obtain an EIN by calling 267-941-1099 (not toll-free).

  Form SS-4: Application for Employer Identification Number – IRS

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  7. Required Information for EIN Application

  To complete your EIN application, you must provide:

  • Legal name of the entity
  • Trade name (if different)
  • Business address
  • Type of entity
  • Responsible party (name and SSN or ITIN)
  • Reason for applying (starting a new business, hiring employees, banking, etc.)
    
    
    
    

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    8. EIN for LLCs
    • Single-member LLC: Can use an EIN for banking and payroll purposes.
    • Multi-member LLC: Required to get an EIN for partnership tax reporting.

    IRS guidance on LLC taxation and EIN: Limited Liability Company (LLC) – IRS

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    9. EIN for Corporations

    All corporations, including S-Corporations and C-Corporations, must have an EIN.
    IRS S-Corp info: S Corporations – IRS
    IRS C-Corp info: Corporations – IRS

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    10. EIN for Nonprofits

    501(c)(3) and other nonprofit organizations require an EIN before applying for tax-exempt status.

    IRS Nonprofit Guidance: Apply for 501(c)(3) – IRS

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    11. EIN and Payroll Taxes

    Once you hire employees, your EIN is used to:

    • Withhold federal income taxes
    • Pay Social Security and Medicare taxes
    • File Form 941 (quarterly payroll) and Form 940 (unemployment)

    Employment Taxes – IRS: Employment Taxes

    
  
  

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  12. EIN and Banking

  Banks require an EIN to open a business checking or savings account. Having an EIN separates personal finances from business finances, which is important for LLCs and corporations.

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  13. EIN for Retirement Plans

  Business owners can use EINs to set up retirement accounts like SEP-IRAs or 401(k)s.

  IRS Retirement Plans: Small Business Retirement Plans

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  14. Updating EIN Information

  If your business changes:

  • Responsible party
  • Legal name
  • Business structure

  You must notify the IRS using Form 8822-B:
  Change of Address or Responsible Party – IRS

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  15. EIN and Compliance

  Using your EIN correctly ensures compliance with:

  • Federal taxes
  • State payroll requirements
  • IRS reporting obligations

  Failure to use your EIN properly may result in penalties.

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  16. EIN for International Applicants

  Foreign businesses without an SSN or ITIN can apply for an EIN by phone or by submitting Form SS-4 via fax or mail.

  International EIN Info – IRS: EIN for Foreign Applicants

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  17. EIN Verification

  Once issued, the IRS provides an official EIN confirmation letter, which is needed for:

  • Banking
  • Business licensing
  • IRS reporting

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  18. Final Thoughts

  Obtaining an EIN is a simple yet critical step in forming a business. It ensures IRS compliance, facilitates banking, and allows payroll and tax reporting. Entrepreneurs should apply as early as possible to establish a solid foundation for their business operations.