EIN Application

An Employer Identification Number (EIN) is a unique number assigned to a business or trust by the IRS. It is like a Social Security number for a business, separating it from the owner’s personal tax returns and making it easier to open bank accounts and establish credit. There are several reasons why businesses need an EIN. Some examples include filing tax returns for the business, completing W9 forms for clients (service businesses), and applying for credit cards or loans in the name of the business. An EIN is also needed if the business has employees or a plan or trust that holds funds for an employee benefit, such as a Keogh plan. The IRS provides an online EIN Application tool.

The IRS accepts EIN Applications from a wide variety of entities, including sole proprietorships with employees, partnerships, S corporations, C corporations, LPs, LLCs, and non-profit organizations. In addition, trusts and estates that meet certain criteria must get an EIN, including revocable trusts, irrevocable trusts established for charitable or educational purposes, and trusts established as part of a taxable divorce or inheritance.

How to Apply for EIN?

You can apply for an EIN online on the IRS website. This is the preferred method because it’s fast and free. The IRS also accepts applications by fax and mail, and for international applicants who are unable to apply online, there’s the option to apply over the phone. You’ll be asked to share some basic information about your business during the application. You’ll need to provide a name, address (including a postal zone number), the type of entity you are establishing, and the person who is the responsible party. The IRS also requires you to share a reason for needing an EIN. This could be because you are starting a new business, hiring employees for the first time, getting in compliance with tax withholding regulations, opening bank accounts, or purchasing an active business.

If you receive the error code 109 when applying for an EIN, it typically means that there is an issue with the online system. You can try restarting your computer, using a different browser, clearing caches, or adjusting security settings. If you still can’t get the application to work, contact the IRS or file Form SS-4 by mail or fax.

EIN Application Form

You can get an EIN by completing IRS Form SS-4. You can apply online, by mail, or by fax. The EIN is your business’s unique number that identifies it to the IRS like your Social Security number identifies you. The SS-4 requires basic information about the business, including its name and address. You also need to identify the responsible party, who is a person who controls or manages the business and its funds and assets. This is generally the principal officer, general partner, grantor, or owner of a disregarded entity or the trustee of a trust.

The IRS recently made changes to the SS-4 to improve identity verification. These changes require the SS-4 to include the actual responsible party’s full name and Social Security or taxpayer-identification number rather than a designated representative. This helps prevent nominees’ use, which can conceal ownership and facilitate tax non-compliance by entities and their owners.