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If you operate a business or plan to open one soon, you’ve likely heard the term EIN. But what is an EIN, or employer identification number, and do you need one?
In short, EINs are used by the IRS to identify businesses and organizations for tax purposes. Even if you aren’t required to have an EIN, it can be helpful when starting and running a business.
What is an EIN?
The IRS defines an employer identification number, or EIN, as a “federal tax ID number for businesses, tax-exempt organizations and other entities.”
Like a Social Security number, it is nine digits and unique to the business entity or organization.
Who needs an EIN?
You’re required to apply for an EIN if you meet any of the following criteria:
- You have employees.
- You operate a limited liability company (LLC), corporation or partnership.
- You’re a tax-exempt organization.
- You’re responsible for employment, firearms, tobacco or excise taxes.
- You pay a non-resident alien and withhold taxes on non-wage income.
- You operate a farmers’ cooperative or real estate mortgage investment conduit.
- You operate an Individual Retirement Account (IRA) or other retirement plan.
- You’re involved with a trust (excluding grantor-owned and revocable trusts).
It’s worth noting that some business owners choose to apply for an EIN even if it’s not mandatory. Doing so allows them to open a bank account, apply for licenses and handle other business using a unique tax identifier instead of their Social Security number.
How to get an EIN
It’s free to request an EIN, and there are three options to choose from.
Apply online
The IRS has an online “apply for an EIN” tool, which accepts applications Monday through Friday from 7 a.m. to 10 p.m. Eastern time. Be sure to have your Social Security number or Individual Taxpayer Identification Number (ITIN) handy before applying.
It only takes a few minutes to complete the application, and you’ll receive your EIN digitally once it’s complete. It’s smart to download the confirmation letter and save it to your device.
Keep in mind that you can only request a single EIN daily through this system. Also, the tool times out after 15 minutes of inactivity. You’ll need to start from scratch if you cannot complete the questionnaire in one sitting.
International applicants operating outside the U.S. cannot use this tool. You must apply by fax, mail or phone. More on these options below.
Apply by fax or mail
You can apply for your EIN by fax or mail, but the processing times are longer.
If you choose to apply by fax:
If you choose to apply by mail:
- Complete and mail Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Expect a response in four weeks.
- International applicants can mail the same form to Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999.
Apply by phone
This option is reserved for international applicants, and the point of contact is 267-941-1099. Phone lines are open Monday through Friday from 6 a.m. to 11 p.m. Eastern time.
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How to look up an EIN
Unfortunately, the IRS doesn’t offer a handy online tool to locate your EIN. If you’ve misplaced it, review your business documents or check your EIN confirmation letter to find it. Or you can call the IRS’ Business and Specialty Tax Line at 1-800-829-4933 Monday through Friday from 7 a.m. to 7 p.m. local time for additional assistance.
If you need to find another party’s EIN number, reach out to the company, request a copy of their credit report or conduct an online search. Online databases are also available to assist with the search, but you’ll likely pay a fee.
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