Applying for an Employer Identification Number (EIN) is a crucial step for many businesses, and the good news is, getting one directly from the IRS is not only straightforward but also completely free. Steer clear of websites that try to charge you for this service; obtaining an EIN from the official source will never cost you a dime. This guide will walk you through Where To Get An EIN, ensuring you do it correctly and efficiently.
Applying for Your EIN Online: The IRS Tool
The most convenient and quickest way to get an EIN is through the IRS’s online EIN application tool. This service is designed to be user-friendly, allowing you to complete the entire process in just one session. Here’s how it works:
- Single Session Application: You need to complete the application in one go as you cannot save your progress and return later.
- Time Limit: The application has a 15-minute inactivity timeout. If you exceed this, the session will expire, and you’ll need to restart the process.
- Immediate Confirmation: Upon successful approval, your EIN is issued immediately online, and you can download and print your EIN confirmation letter for your records.
Who Can Use the IRS Online EIN Tool?
This online tool is specifically for applicants who meet certain criteria:
- U.S. Business Location: Your principal place of business must be located within the United States or U.S. territories.
- Responsible Party: You must be the responsible party who controls the entity or be an authorized representative with proper authorization.
- Taxpayer Identification Number: You need to have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN) belonging to the responsible party.
When You Can’t Use the Online Tool
There are situations where the online tool is not applicable:
- Business Outside the U.S.: If your principal business location is outside of the U.S., you cannot use the online tool. In this case, you will need to apply by phone, fax, or mail as detailed on the IRS website.
- Applying with an Existing EIN: Government entities are the only ones permitted to apply using an existing EIN.
What You Need Before You Apply
Before starting your online EIN application, ensure you have the following information ready:
- Information about your business structure (e.g., LLC, corporation, partnership).
- The principal business activity.
- The responsible party’s information (name, SSN or ITIN, address).
Once you have gathered this information, you are ready to proceed with the application.
Accessing the EIN Application
Getting to the application is simple. You can directly access the IRS’s EIN online application tool by searching “IRS EIN application” on any search engine or navigating to the IRS website and looking for the EIN section. The IRS provides a direct link to the application for ease of access.
Tool Availability and Daily Limits
Keep in mind the availability of the online tool:
- Hours of Operation: The tool is available from Monday to Friday, 7 a.m. to 10 p.m. Eastern Time.
- Daily Application Limit: There is a limit of one EIN application per responsible party per day.
When to Apply for an EIN
Timing is important when applying for an EIN, especially if you are forming a legal entity.
- Form Entity First: If you are creating an LLC, partnership, corporation, or tax-exempt organization, it is crucial to form your entity through your state government before applying for an EIN. Applying for an EIN before state formation might cause delays in your application process.
Generally, businesses and organizations require an EIN for various reasons, including:
- Hiring employees.
- Operating as a partnership or corporation.
- Paying sales and excise taxes.
- Changing business structure or ownership.
- Administering certain trusts, retirement plans, and estates.
After receiving your EIN, remember your responsibility to file necessary tax returns or information returns.
If you already have an EIN and are unsure if you need a new one, consult the IRS guidelines on when to get a new EIN.
Alternative Application Methods
If you are unable to apply online due to eligibility reasons or preference, the IRS offers other methods:
- Phone, Fax, or Mail: For those who cannot apply online, the IRS provides options to apply for an EIN via phone, fax, or mail. Details for these methods, particularly for international applicants, can be found on the IRS website.
Beneficial Ownership Information Reporting
It’s also important to be aware of beneficial ownership information reporting requirements. Certain corporations, LLCs, and other entities may need to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Check if this requirement applies to your entity.
Beneficial Ownership Information Reporting | FinCEN.gov
By following these steps, you can confidently navigate where to get an EIN and complete your application smoothly and without any unnecessary costs. Remember to always use official IRS resources for the most accurate and safe process.
