An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify entities operating in the United States. It is mandatory for various actions, such as filing taxes, opening bank accounts, and hiring employees. The process to acquire an EIN is straightforward and free of charge.
Applying for an EIN
To apply for an EIN, you can:
- Online: The application is available Monday – Friday, 7 a.m. to 10 p.m. Eastern time on the IRS website.
- Telephone: Call the IRS Business & Specialty Tax Line at (800) 829-4933 between 7 a.m. – 7 p.m. local time, Monday through Friday.
- Mail: Send Form SS-4 by mail, and allow about 4 weeks for processing.
- Fax: Fax Form SS-4, and receive a response in about one week.
EINs do not expire once issued. They are used for filing taxes, hiring employees, opening accounts, and obtaining licenses and permits.
Do You Need an EIN?
You’ll need an EIN if:
- You have employees.
- You operate your business as a corporation or partnership.
- You file Employment, Excise, or Alcohol, Tobacco and Firearms tax returns.
- You withhold taxes on income paid to a non-resident alien.
- You have a Keogh plan.
The IRS provides a simple checklist you can use to determine whether your business needs an EIN. An EIN is akin to a Social Security number for businesses. It stays with the business through various changes, such as changes in ownership or corporate structure.
Obtaining an EIN is Cost-Free
The Federal Revenue Service (IRS) provides this service at no charge. You can apply for an EIN through multiple channels, and the EIN is issued immediately upon submission. After obtaining an EIN, it remains with the business indefinitely, ensuring you can continue using it even if the business undergoes structural changes.