Apply for a Federal Employer Identification Number (FEIN/EIN)
Federal Employer Identification Number (EIN)
An Employer Identification Number (EIN), also called a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to identify a business for federal tax purposes — functioning similarly to a Social Security number for individuals. Most businesses need an EIN to file federal tax returns, hire employees, open a business bank account, and apply for certain licenses or tax-exempt status. Even businesses without employees, such as single-member LLCs, often need or benefit from having one — for example, banks frequently require an EIN to open a business account, and using one in place of a personal Social Security number helps separate business and personal information.
Who Needs an EIN?
Generally, a business needs an EIN if it has employees, operates as a corporation or partnership, withholds taxes on income paid to a non-resident alien, or files certain federal tax, employment, or excise returns. A sole proprietor with no employees and no other qualifying activity may not be required to obtain one, but may still choose to for the practical reasons noted above.
How to Apply
An EIN can be obtained directly from the IRS at no cost — businesses should be cautious of third-party websites that charge a fee for this service. If forming a legal entity (such as an LLC or corporation), the entity should generally be formed with the state first, since applying for an EIN before state formation is complete can delay the application.
Online (fastest method): Available for businesses with a principal location in the U.S. or U.S. territories. The online application is completed in one sitting (it cannot be saved and restarted) and, once approved, issues the EIN immediately. Apply at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
By fax: Submit a completed Form SS-4 by fax; the IRS will generally fax back the EIN within about four business days. Instructions and the form are available at: https://www.irs.gov/forms-pubs/about-form-ss-4
By mail: Submit a completed Form SS-4 by mail; this is the slowest method, generally taking several weeks.
By phone: Available only to international applicants without a legal residence, principal place of business, or principal office in the U.S. or its territories.
The general overview and starting point for all of these methods is the IRS's EIN page: https://www.irs.gov/businesses/employer-identification-number.
A Few Practical Notes
The application requires identifying a "responsible party" — generally the individual who controls the entity and its assets — along with that person's Social Security number or ITIN. Only one EIN may be issued per responsible party, per day, regardless of the method used. If the information on file with the IRS later changes (such as the responsible party, address, or business location), the business is required to report those changes using Form 8822-B within 60 days.