Do You Need an EIN? How to Get One for Free

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to a business. It works like a Social Security number for your company. Here is who needs one and how to get it without paying anyone.

Who needs an EIN

The IRS says you generally need an EIN if you:

Have employees
Owe employment, excise, or alcohol, tobacco, and firearms taxes
Withhold tax on non-wage income paid to a nonresident alien

Certain entities need one regardless, including partnerships, corporations, estates, most trusts, and tax-exempt organizations. You can also ask for one for banking or state tax purposes.

What about single-member LLCs?

A single-member LLC with no employees and no excise tax liability doesn’t have to have an EIN. It can use the owner’s SSN for income tax. But a single-member LLC needs its own EIN if it has employees, and banks often require an EIN to open a business account. If a foreign-owned LLC must file Form 5472, it needs an EIN as well (Form 5472 guide).

It is free

The IRS says you can get an EIN “for free directly from the IRS in minutes.” Be wary of websites that charge a fee. You never have to pay to get one.

How to apply

If your principal place of business is in the U.S.:

Online: through the IRS website. This is the quickest way.
Fax: send Form SS-4 to 855-641-6935. Include your fax number to get the EIN back in about 4 business days.
Mail: send Form SS-4 to the IRS in Cincinnati, OH 45999 (Attn: EIN Operation). Expect about 4 weeks.

If your principal place of business is outside the U.S.:

Phone: 267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern.
Fax Form SS-4 to 855-215-1627 from the U.S., or 304-707-9471 from outside the U.S.
Mail to the EIN International Operation in Cincinnati.

Know before you apply

You need a “responsible party.” This is the person who controls the entity and its assets. The application generally requires that person’s name, SSN, ITIN, or EIN (for entities), and signature. If the person has no SSN or ITIN, check the SS-4 instructions for what to enter.
No nominees. The IRS states that nominees are not authorized to apply for an EIN.
One per day. You can apply for only one EIN per day, whether online, by phone, mail, or fax.
Match your legal name. Use the exact name on your formation documents.

After you get it

Save the IRS confirmation letter with your formation documents.
Use the EIN to open a business bank account.
Use it on payroll, tax, and licensing forms.

Need help applying or choosing the right entity type? Book a call with FlowTex.

Sources

This article is general information, not tax or legal advice.