How to get an EIN for your LLC, corporation, or partnership

An Employer Identification Number separates self-employed individuals from your business so your business becomes a legal entity that pays state taxes and federal taxes. Business owners obtain an Employer Identification Number, or EIN, so they can pay federal taxes on their business earnings. They also get this number so they can hire employees.

The EIN is similar to a Social Security number in that it is used for tax purposes such as federal taxes or filing tax returns to the Internal Revenue Service. Your Social Security number is used to identify your personal taxes, which are separate from business or entity taxes. Depending on your business type, you may need to register your business before you get an EIN.

What to do before getting an EIN

If your business formation is anything other than a sole proprietorship, you are required to register with the state before getting an EIN application. You will be required to give the date of business formation, along with a legal business name, approved by your Secretary of State. Registering your business first ensures you are not getting an EIN for another company that has the same name. Every state has its own business registration process that you can usually find on an official state government website.

What does EIN stand for?

EIN stands for "Employer Identification Number." It is a unique sequence of nine numbers assigned to a business by the IRS. Once you apply for an EIN and the number has been assigned, it never expires, nor can it be reissued to another business. The nine-digit number is used for the purpose of reporting taxes. Generally formatted as 12-3456789, a business can apply for its own via a fast and easy application process through the IRS.

Obtaining an EIN ensures your personal finances are kept separate from business finances. This number can also be referred to as a Federal Tax Identification Number. The U.S. revenue service refers to both EINs and Social Security numbers as valid Taxpayer Identification Numbers (TIN).

Your unique federal tax ID number, or EIN, is formatted as XX-XXXXXXX and used to open a business bank account, withhold taxes, complete W9 tax forms as an independent contractor, or pay taxes. An EIN is distributed by the IRS, the U.S. government organization tasked with educating and facilitating the process of paying taxes or filing taxes for individuals and businesses.

Any person, business, or responsible party that is self-employed, has employees, and/or operates as a corporation or partnership can apply for the EIN via phone, mail, or on the internet prior to officially starting their business.

These other business entities must also apply for a unique employer identification EIN:

• Limited liability company (LLC) with employees or more than one member
• Government agencies
• Nonprofit organizations (all non-profits must apply)
• S corporations
• Partnerships
• Estates
• Trusts that are irrevocable

The IRS expects that all businesses that have multiple members or employees or that have certain other factors operate using an EIN.

How to get an EIN number

The process for applying is easy, no matter if you are in the U.S. or abroad. In the U.S., applications can be made online, including via LegalZoom’s simplified service, the IRS, or via phone, fax, or mail.

According to the IRS, the internet application is the best way to apply. During the online session to apply for an EIN, the application information is validated, and the EIN is issued immediately and cost-free. LegalZoom makes this even easier by filing your EIN application directly with the IRS and then sending you the final paperwork for effortless filing that helps ensure you’re in compliance. All other businesses that cannot use the online application can fill out form SS-4 on the IRS website.

In order to apply for the EIN, the IRS requires the name of the company owner, principal officer, partner, or trustor, and the personal taxpayer identification number (Social Security number).

You will also need the following to include on the EIN application:

• type of enterprise (sole proprietorship, partnership, etc.)
• reason for applying (such as for a new business)
• date of business acquisition or start date
• principal industry of business

It is mandatory that the business be located in the U.S. or a U.S. territory in order to be eligible to apply for a federal tax ID, or EIN, online. Once the information has been approved, the EIN is assigned to the business immediately.

What is my federal tax ID or EIN number?

Once your business is issued a federal tax ID number, or EIN, you will receive a notice detailing your number. It is important that you keep that number safe, as looking the number up online is not that simple. However, if you lose it, here are some possible ways to recover the number.

1. Review relevant business documents

You may find your federal tax ID number, or EIN, printed on business documents such as your articles of formation or business loan applications. It may also be stored on tax forms or other completed forms from prior years. You may also have a letter from your bank that may have it written.

2. Review your EIN confirmation letter

The IRS generates an electronic letter confirming your federal tax ID number or EIN number after applying. If you applied online, your electronic notice should have been generated at the end of your application session and can be either printed or saved in your electronic folders. If you applied through a third-party company, you may have also received your letter via the mail. Search your email inbox or computer records to see if it is filed away online.

3. Call the IRS

If all else fails, the IRS Business and Specialty Tax Line is available Monday through Friday. The assistant will ask you to provide certain identifiable information to ensure your privacy before sharing the federal tax ID number or EIN.

Can I open a business bank account with an Employer Identification Number only?

Banks utilize your EIN as a way to verify that your business is a legal operation that pays taxes. It is not possible for a business to open a corporate account with a federal tax ID number or EIN only. There are a number of other documents your bank may request in addition to your EIN in order to verify the identity of the person or responsible party opening the account. You will need to be able to provide proof of your name, date of birth, and address, usually through a driver's license, state ID card, and Social Security number.

FAQs

What is an EIN, and how do I get one?

An Employer Identification Number (EIN) is the number assigned to a business to assist them in the tax-paying process. This number is generally formatted as XX-XXXXXXX and can be used to do a variety of business-related tasks like starting a business bank account, filling out W9 tax forms as an independent contractor, or filing taxes. The EIN is given by the IRS, the government organization that educates the public and facilitates the process of paying taxes for individuals and businesses. With LegalZoom, you can secure an EIN easily—we’ll file your application directly with the IRS for you, and send you final paperwork for confirmation of accurate filing. 

What is a taxpayer identification number?

A valid taxpayer identification number, or TIN, is another name for an EIN, the nine-digit number that identifies a person or business to the IRS. This number is required for use on your tax return. The revenue service will also ask you to identify yourself or your business via your TIN or EIN via all written or spoken communication in regard to income taxes.

What is an Individual Taxpayer Identification Number?

An Individual Taxpayer Identification Number, or ITIN, is an identification number used for some nonresident and resident aliens, their spouses, and dependents who are not able to obtain a social security number. Similar to the SSN, the ITIN is a nine-digit number formatted at YYY-YY-YYYY.

What is an 'employee' identification number?

An "employee" identification number is often confused with an "employer" ID number. The proper term is "employer" identification number. The EIN allows you to hire employees.

How to apply for an EIN online?

When starting a small business in the United States or U.S. and you need an EIN, it's important to take the shortest route to getting your company up and running whenever possible. Applying online for an EIN is one of those shortcuts. The online application is easy to use when applying for a new EIN and must be completed in one session. The application requires that you answer questions that are relevant to your business. Sole proprietors do not need an EIN.