We believe everyone should be able to make financial decisions with confidence. The simplest way to apply for your EIN is online via the IRS EIN Assistant. As soon as your application is complete and validated, you’ll be issued an EIN. However, non-employers are also required to obtain one if they operate as a corporation or partnership. By Fax or Mail – You can apply by fax or mail as indicated above. Look back at your records to see if you have the printed notice from the IRS.

HP Celebrates Inaugural Amplify Impact Award Winners – EIN News

HP Celebrates Inaugural Amplify Impact Award Winners.

Posted: Tue, 07 Mar 2023 17:00:00 GMT [source]

If you submit the information online, you can get your number back immediately. Filling out the SS-4 and mailing it in can take at least 4-5 weeks. If you are assigned an EIN online, make sure you save the notice verifying that your business has been assigned an EIN and keep it in a safe place. The IRS offers a simple checklist you can use to determine whether your business needs an EIN.

Wait, Are You Incorporating Your Business?

Unlike a SSN, an EIN is not considered sensitive information and is freely distributed by many businesses by way of publications and the internet. Business bank accounts will also provide you with access to finance professionals and services (e.g. payroll services, access to small business loans) that will make running your business easier. You can also sometimes open a business credit card with your bank, which comes with its own benefits. If you’re a sole proprietor without an EIN, and you continue giving out your SSN to clients or vendors, you’re putting yourself at a higher risk. You don’t need an EIN if you’re self-employed; you can simply use your Social Security number. Although an EIN is not required to apply for all business loans, a lot of lenders prefer a company that has established its business credit through a business bank account.


In fact, there are some distinct advantages you stand to gain by applying for an EIN. And the good news is that applying for an EIN is free and takes just minutes. An EIN is as important for your company as a Social Security number is in your personal life.

Do I Need an EIN for an LLC?

No, there is not a difference between an Employer Identification Number and a what is an ein numberpayer Identification Number . Both refer to the nine-digit number issued by the IRS for your business. Visit our What is an EIN guide to learn more about when you are required to have an EIN and how to get one.

For application by fax, you can generally expect to receive your EIN in four days. The timeline extends to four weeks for applications by mail. Here are some common questions about EINs that you may encounter as a business owner, both before you have applied for an EIN and once the IRS has issued one. As small business owners are filling out forms, they often see requests for an employer identification number, which is generally referred to as an EIN or EIN number. Delivering a personal approach to banking, we strive to identify financial solutions to fit your individual needs.

What Is the Purpose of an EIN?

As we mentioned above, not all TIN options apply to businesses, and not all businesses need an EIN. We strive to provide you with information about products and services you might find interesting and useful. Relationship-based ads and online behavioral advertising help us do that. Some companies, such as sole proprietorships, might need a new EIN if they change their structure to partnership, become subject to a bankruptcy proceeding or choose a different tax election . An EIN is a unique nine-digit number that identifies the company as a business operating in the United States.

  • The IRS also accepts paper mail applications, though it quotes an expected turnaround time between four and five weeks.
  • The issuance of an EIN to a non-profit organization does not automatically grant tax-exempt status from the IRS, which must be obtained separately.
  • If you’re a single member LLC, an EIN helps you maintain your corporate veil.
  • Suppose you or your business undergoes any changes, such as a name change or the responsible party.
  • Your previously filed tax return, business credit report, checks for business loans, or bank statements are good places to start.

However, there are certain circumstances where your EIN will not be used instead of your personal credit score. SSN can be used with the IRS if you run a sole proprietorship. The EIN is free to apply for and can be applied online, by mail, or by fax. If you have any doubts about the EIN application process, please consult with an accountant, or tax specialist or contact the Business & Specialty Tax Line.

Hire Employees

If you use a law firm or other professional service to incorporate your business, they may take care of this task for you and may or may not charge for that service. Just keep in mind that you applying for an EIN is a simple process for most business owners, and you can do it for free on the IRS website. Some small business lenders require businesses to operate as an LLC, corporation or other legal entity. They may require an EIN or TIN on the application when you apply for a small business loan. In addition to IRS requirements, you may find your business needs an EIN to get a business bank account, to apply for financing, or to apply for a business license.

Some banks allow sole proprietors to open a business bank account without an EIN, but others have stricter policies. Bank of America checking and savings accounts, for instance, require proof of EIN from sole proprietors and all other types of businesses. Not all banks require an EIN to open a business checking account or for other types of business accounts, though some do. Banks that offer sole proprietors bank accounts and/or financing may allow an entrepreneur to open an account using their Social Security number or other Taxpayer Identification Number. If businesses change their business structure or ownership, for instance; from sole proprietorship to incorporation, they need to apply for a new number. This may not be required if you are simply changing the location or name of the business.

Leave a Reply

Your email address will not be published.