An Employer Identification Number is free, fast, and essential. Here is exactly how to get one.
An Employer Identification Number (EIN) is a nine-digit number the IRS uses to identify a business, much like a Social Security Number identifies an individual. You need one to open a business bank account, hire employees, file business tax returns, and apply for certain licenses.
The good news: obtaining an EIN is free and takes minutes if you apply online. Go to the IRS website and search for 'Apply for an EIN online.' The application is available Monday through Friday during specific hours. You will need the name and Social Security Number of the principal owner (called the responsible party) and the legal name and mailing address of the business.
Once you complete the short questionnaire, your EIN is issued immediately. You can download a confirmation letter right away—save and print it, because you will need it for your bank, your accountant, and your records. If you lose it, you can call the IRS to have a replacement letter mailed, but it is far easier to keep the original.
If your business is an LLC or corporation, you should apply for the EIN after your formation documents are accepted by the state, so the legal name on the EIN matches your filed articles. For sole proprietors, you can apply at any time using your own name as the business name unless you operate under a DBA.
Avoid third-party services that charge a fee to obtain an EIN for you. The IRS provides this service at no cost, and the application is simple enough to complete without help in nearly every case.
This article is general educational information and is not legal, accounting, tax, or investment advice. Rules, limits, and thresholds change. Insurance products and availability vary by state, carrier, underwriting, and licensing. Coverage is not effective until approved and issued by the carrier. Consult our office for guidance specific to your situation.