Learn how to apply for an Employer Identification Number (EIN) online with our step-by-step guide. Includes both online and SS-4 form methods for LLC owners and entrepreneurs.
Introduction
If you’re an entrepreneur or business owner, securing an Employer Identification Number (EIN) is a necessary step for various business-related activities, such as filing taxes, hiring employees, and opening a business bank account. One of the fastest and most efficient ways to get an EIN is by applying online through the IRS. This guide walks you through the process of applying for an EIN online and explores an alternative method, applying by fax using the SS-4 form.
What is an EIN?
An EIN, also known as a Federal Tax Identification Number, is a unique number assigned by the IRS to businesses for tax purposes. It’s used to identify your business, just like a Social Security number is used for individuals. Having an EIN is essential for:
- Filing business taxes
- Hiring employees
- Opening a business bank account
- Establishing business credit
When Should You Apply for an EIN?
You need an EIN when you:
- Start a new business (LLC, corporation, partnership, etc.)
- Hire employees
- Need to file federal taxes for your business
- Operate as a corporation or partnership
- Open a business bank account
- Need to establish business credit
How to Apply for an EIN Online: A Step-by-Step Guide
Follow these easy steps to apply for an EIN online:
1. Prepare the Required Information
Ensure you have the following information on hand before starting the application:
- Business name
- Type of business entity (LLC, corporation, partnership, etc.)
- Responsible party’s name and SSN/ITIN
- Business address and reason for applying
2. Visit the IRS EIN Application Page
Go to the official IRS EIN Application Page to start your application. The IRS EIN application is available from Monday to Friday, 7 a.m. to 10 p.m. (EST).
3. Start Your Application
Click on the “Apply Online Now” button and read through the instructions before selecting “Begin Application.”
4. Select Your Business Structure
The application will prompt you to select your business structure (LLC, corporation, etc.). Select the entity type that applies to your business.
5. Enter Your Business Details
You will be asked to provide the name of your business, the business address, and other relevant details.
6. Complete the Responsible Party Information
Enter the name and SSN or ITIN of the person responsible for the business.
7. Review and Submit Your Application
Carefully review your information for accuracy before submitting the application. After submission, you will receive your EIN immediately.
8. Get Your EIN
Once you’ve completed the application, your EIN will be provided immediately. Be sure to save or print the confirmation for your records.
Alternative Method: How to Apply for an EIN by SS-4 Form
If you prefer not to apply online, you can also apply for your EIN by fax using IRS Form SS-4. Here’s a step-by-step guide on how to do that:
1. Download the SS-4 Form
Download Form SS-4, which is available on the IRS website, and fill it out with accurate business and responsible party information. You can download the form here: Form SS-4: Apply for EIN by Fax.
2. Fill Out the Form
Ensure that you fill out the SS-4 form correctly. You will need to provide the following details:
- Legal business name
- Business structure
- Business address
- Responsible party’s details
- Reason for applying for an EIN
3. Fax the Form to the IRS
After completing the form, fax it to the appropriate IRS fax number. You can find the IRS fax numbers on the IRS website or in the Form SS-4 instructions.
4. Receive Your EIN
Once the IRS processes your faxed form, you will receive your EIN. This process may take a few business days.
Why Apply for an EIN Online?
The online application process is the fastest and most convenient way to apply for an EIN. Benefits of applying online include:
- Instant Processing: Get your EIN immediately after submitting your application.
- Free: The online EIN application is free of charge.
- Simple: The online process is user-friendly and guides you step-by-step.
- No Need for Physical Mailing: Save time by applying online instead of mailing forms.
Can You Apply for an EIN by Fax or Mail?
Yes, while applying online is the most efficient method, you can also apply by fax or mail using Form SS-4. However, online applications are processed instantly, while fax and mail submissions can take several business days.
Conclusion
Applying for an EIN is a crucial step for any business, and the online application method is the fastest and easiest way to get started. If you prefer applying via fax or mail, the SS-4 form provides a viable alternative. Either way, obtaining your EIN is a simple and free process that helps you get your business off the ground.
For more detailed instructions on applying by fax using Form SS-4, check out our post here: How to Apply for an EIN by Fax.
