EIN Number
An Employer Identification Number (EIN) is a nine-digit number the Internal Revenue Service (IRS) uses to identify businesses for tax purposes, similar to a Social Security Number (SSN) for individuals.
An EIN number follows the following format: XX-XXXXXXX (for example, 12-3456789). The two-digit prefix refers to which of the 12 different IRS EIN sources issued your federal identification. Prior to 2001, the first two digits indicated the place where your business was located.
Besides tax reporting, EINs allow businesses to open bank accounts, apply for credit, hire employees, and keep business and personal finances separate.
EIN numbers are also known as:
- Federal Employer Identification Number (FEIN)
- Federal Tax Identification Number (FTIN)
Do I Need to Get an EIN Number for My Business?
The IRS has specific rules in place that decide whether or not you will need to apply for an EIN for your business entity.
The purpose is to track payments to individuals for federal income tax and other tax purposes.
You need an EIN if:
- Your business has employees
- Your business is a corporation, partnership, nonprofit organization, or multi-member LLC
- You file employment or excise taxes for items such as, alcohol, tobacco or firearms
- Your business withholds taxes on non-wage income paid to nonresident aliens
- You are involved with trusts that aren’t grantor-owned revocable trusts, IRAs, or Exempt Organization Business Income Tax Returns
- You have involvement in estates or real estate mortgage investment conduits
- You participate in farmers' cooperatives or plan administrators
On the other hand, sole proprietorship and single-member LLCs without employees that don’t file excise or pension plan tax returns are not required to get an Employer Identification Number (EIN).
When would I need to apply for a new EIN or Tax ID Number?
Form your legal entity before applying for an EIN. Apply using the legal business name to avoid issues when filing tax returns.
Also note that once you start using your EIN and begin filing federal taxes, the EIN will not expire.
How long does it take to get my EIN or Tax ID Number?
Applying for an EIN online through our website takes just a few minutes, and you'll receive your Tax ID Number from the IRS almost immediately after submission.
Benefits of EIN Numbers for Businesses
There are many benefits to obtaining an EIN, even if it's not legally required for your business. Here are some of the reasons why it makes sense to obtain an EIN regardless of the type of business entity you run:
- The majority of banks will ask for an EIN in order to set up a business banking account for your business.
- An EIN will help protect your business from identity theft and make your Social Security Number (SSN) more private.
- You will need an EIN to be able to hire employees legally.
- If your company is an LLC, an EIN will help your business have its own identity separate from its owners, therefore protecting you from personal liability for the businesses’ debts.
- You need an EIN to file business taxes and register state taxes.
How to Get an EIN Number?
You can request an EIN number for free online through the IRS EIN assistant after your business is officially formed. The IRS will need your business’s legal name and the date it was established.
Any type of business can apply for EINs, including:
- Limited liability companies (LLCs)
- S corporations
- C corporations
- Sole proprietorships
- Non-profit organizations (NPOs)
- Government agencies
- Partnerships
- Estates
- Trusts
What Happens if I Lose My EIN?
If you lose your EIN, you can find it on the IRS notice when it was issued, your previous tax returns, state licenses, or by contacting your bank.
If you can’t find your EIN, call the IRS Business & Specialty Tax Line at 1-800-829-4933 and have your identification ready to provide.
An Employer Identification Number (EIN) is a nine-digit number the Internal Revenue Service (IRS) uses to identify businesses for tax purposes, similar to a Social Security Number (SSN) for individuals.
An EIN number follows the following format: XX-XXXXXXX (for example, 12-3456789). The two-digit prefix refers to which of the 12 different IRS EIN sources issued your federal identification. Prior to 2001, the first two digits indicated the place where your business was located.
Besides tax reporting, EINs allow businesses to open bank accounts, apply for credit, hire employees, and keep business and personal finances separate.
EIN numbers are also known as:
- Federal Employer Identification Number (FEIN)
- Federal Tax Identification Number (FTIN)
Do I Need to Get an EIN Number for My Business?
The IRS has specific rules in place that decide whether or not you will need to apply for an EIN for your business entity.
The purpose is to track payments to individuals for federal income tax and other tax purposes.
You need an EIN if:
- Your business has employees
- Your business is a corporation, partnership, nonprofit organization, or multi-member LLC
- You file employment or excise taxes for items such as, alcohol, tobacco or firearms
- Your business withholds taxes on non-wage income paid to nonresident aliens
- You are involved with trusts that aren’t grantor-owned revocable trusts, IRAs, or Exempt Organization Business Income Tax Returns
- You have involvement in estates or real estate mortgage investment conduits
- You participate in farmers' cooperatives or plan administrators
On the other hand, sole proprietorship and single-member LLCs without employees that don’t file excise or pension plan tax returns are not required to get an Employer Identification Number (EIN).
When would I need to apply for a new EIN or Tax ID Number?
Form your legal entity before applying for an EIN. Apply using the legal business name to avoid issues when filing tax returns.
Also note that once you start using your EIN and begin filing federal taxes, the EIN will not expire.
How long does it take to get my EIN or Tax ID Number?
Applying for an EIN online through our website takes just a few minutes, and you'll receive your Tax ID Number from the IRS almost immediately after submission.
Benefits of EIN Numbers for Businesses
There are many benefits to obtaining an EIN, even if it's not legally required for your business. Here are some of the reasons why it makes sense to obtain an EIN regardless of the type of business entity you run:
- The majority of banks will ask for an EIN in order to set up a business banking account for your business.
- An EIN will help protect your business from identity theft and make your Social Security Number (SSN) more private.
- You will need an EIN to be able to hire employees legally.
- If your company is an LLC, an EIN will help your business have its own identity separate from its owners, therefore protecting you from personal liability for the businesses’ debts.
- You need an EIN to file business taxes and register state taxes.
How to Get an EIN Number?
You can request an EIN number for free online through the IRS EIN assistant after your business is officially formed. The IRS will need your business’s legal name and the date it was established.
Any type of business can apply for EINs, including:
- Limited liability companies (LLCs)
- S corporations
- C corporations
- Sole proprietorships
- Non-profit organizations (NPOs)
- Government agencies
- Partnerships
- Estates
- Trusts
What Happens if I Lose My EIN?
If you lose your EIN, you can find it on the IRS notice when it was issued, your previous tax returns, state licenses, or by contacting your bank.
If you can’t find your EIN, call the IRS Business & Specialty Tax Line at 1-800-829-4933 and have your identification ready to provide.