What is the Process for Obtaining an EIN for a U.S.-Based Company?

 

Starting a business in the United States involves several crucial legal and tax-related steps. One of the most important identifiers a business must obtain is the Employer Identification Number (EIN). Whether you're forming a sole proprietorship, partnership, LLC, or corporation, the EIN is necessary for tax filing, hiring employees, opening a business bank account, and more.

In this blog post, we’ll guide you step-by-step through the process of applying for an EIN, explain who needs one, where and how to apply, and offer tips to make the process smooth and successful.

What is an EIN?

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses operating in the United States. Also known as a Federal Tax Identification Number, it’s used to:

• Identify a business entity for federal tax purposes

• Open business bank accounts

• Apply for business licenses

• File payroll and excise taxes

• Establish credit for the business

• Hire employees legally

Example of an EIN format: 12-3456789

Just like a Social Security Number (SSN) is issued to individuals, an EIN is issued to businesses.

Who Needs an EIN?

You are required to obtain an EIN if your business meets any of the following criteria:

• You have employees

• You operate your business as a corporation or a partnership

• You file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms

• You withhold taxes on income (other than wages) paid to a non-resident alien

• You use a Keogh plan (a type of retirement plan)

• You’re involved with certain types of organizations like trusts, estates, nonprofits, or farmers’ cooperatives

Even sole proprietors and single-member LLCs may need an EIN if they want to open a business bank account or hire employees.

What Is the EIN Application Process?

There are four primary ways to apply for an EIN:

1. Apply Online (Recommended)

The fastest and most convenient way to get an EIN.

Steps:

• Go to the IRS EIN Assistant: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

• Select the type of legal structure (e.g., LLC, Corporation, Sole Proprietor)

• Fill out business information including address, responsible party (owner), and purpose

• Submit the application online

• Receive your EIN immediately as a downloadable confirmation letter (Form CP 575)

Advantages:

• Immediate EIN issuance

• Instant confirmation letter

• Available Monday–Friday, 7 a.m. to 10 p.m. EST

Limitations:

• Only U.S.-based applicants can use this option

• Only one EIN per responsible party per day

2. Apply by Fax

Ideal if you want to submit a written application but still want relatively fast processing.

Steps:

• Download and complete Form SS-4: https://www.irs.gov/pub/irs-pdf/p1635.pdf

• Fax it to the IRS at 855-641-6935 (for businesses in the U.S.)

• If you include a return fax number, you’ll get your EIN in 4 business days

3. Apply by Mail

This method takes the longest but is still reliable.

Steps:

• Complete Form SS-4

• Mail to:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
USA

Expect to receive your EIN in 4–6 weeks

4. Apply by Phone (International Applicants Only)

If your business is located outside the U.S. or you don’t have a U.S. Social Security Number, you can apply by phone.

Steps:

• Call the IRS at +1-267-941-1099

• Hours: Monday to Friday, 6 a.m. to 11 p.m. EST

• An IRS representative will assist you in completing the application and issue the EIN during the call

Information You’ll Need to Provide

When filling out Form SS-4 (or using the online assistant), have the following details ready:

1. Legal name of the entity

2. Trade name (if applicable)

3. Mailing address

4. Responsible party’s name and SSN or ITIN

5. Type of entity (LLC, sole proprietorship, etc.)

6. Number of members (if LLC)

7. Reason for applying (Starting a new business, hiring employees, banking, etc.)

8. Date the business was started

9. Principal activity or industry

10. Number of employees expected within 12 months

11. Whether you’ll file employment tax returns

12. Whether you’ve ever applied for an EIN before

Sample Form SS-4 Snapshot

Here’s a brief breakdown of what Form SS-4 asks:

Line	Item
1	Legal name of entity
2	Trade name (DBA)
3	Executor, trustee, or owner name
4a-b	Address (physical and mailing)
7a-b	Responsible party’s name and SSN/ITIN
8a	Type of entity
9a	Reason for applying
10	Date business started
11	Number of employees expected
16	Principal line of business
18	Previous EINs issued?

You can download a fillable version of the form directly from the IRS Forms page: https://www.irs.gov/forms-pubs/about-form-ss-4

Tips for a Smooth Application

• Use accurate and consistent names and addresses across all business documents

• Only apply once—do not submit multiple applications for the same business

• If you're an LLC, know whether it's a single-member or multi-member, and how it elects to be taxed

• Have your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) ready

• Keep your EIN confirmation letter safe; you’ll need it for everything from bank accounts to state registrations

What Happens After You Get Your EIN?

Once you've received your EIN:

Use it to:

• Open a business bank account

• Apply for business licenses

• File taxes with the IRS

• Report payroll and issue W-2s or 1099s (if you hire workers or contractors)

Keep in mind:

• Your EIN does not expire

• You do not need a new EIN if your business name changes (but you must notify the IRS)

• You may need a new EIN if your business structure changes (e.g., sole proprietorship to corporation)

Do You Ever Need to Cancel or Change an EIN?

You can’t cancel an EIN, but you can close your IRS business account by mailing a letter to the IRS. Include your business name, EIN, reason for closing, and a copy of the EIN assignment letter.

If you change your business name or address, use Form 8822-B to notify the IRS.

Frequently Asked Questions (FAQ)

1. Is it free to apply for an EIN?
Yes. The IRS does not charge any fee for issuing an EIN. Be cautious of third-party services that try to charge for it.

2. How long does it take to receive an EIN?

• Online: Instantly

• Fax: Approximately 4 business days

• Mail: 4–6 weeks

• Phone (for foreign applicants): Immediately during the call

3. Can I use my SSN instead of an EIN?
For sole proprietors with no employees, yes. But using an EIN helps separate personal and business finances and can enhance business credibility.

4. Do I need a new EIN if I change my business name?
No, but you must notify the IRS. Use Form 8822-B for address or name changes.

5. Can a non-U.S. resident apply for an EIN?
Yes. Non-U.S. residents without an SSN can apply by phone or by mailing/faxing Form SS-4.

Final Thoughts

Applying for an EIN is a simple but vital step in establishing your U.S.-based business. It formalizes your business in the eyes of the IRS and opens the door to legal hiring, banking, licensing, and filing taxes. Whether you’re a freelancer just starting out or an entrepreneur building a larger company, securing an EIN sets your business on the path to compliance and growth.

Be sure to follow the correct steps, double-check your information, and store your EIN safely once you receive it.