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How to Get an EIN Number for Your Business

A plain walkthrough of the Employer Identification Number: what it is, when the IRS says you need one, and how to apply the right way.

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Business owners setting up a company meet the EIN early. Here is what the number is, when the IRS says you need one, and how to get an EIN number without a delay.

What an EIN is

EIN is short for Employer Identification Number. The IRS says businesses, groups and some retirement trusts need one to handle their taxes. It is the tax-side ID for your company.

Does your business need one?

The IRS lists clear triggers. You generally need an EIN to hire employees. You also need one to run a partnership or a corporation. You also need one to pay sales and excise taxes.

So do you need an EIN if you have no employees? The IRS ties the EIN to more than hiring. It says you generally need one to operate a partnership or corporation.

Changing your business structure or its owners is another reason you need one. If you switch from a sole proprietorship to an LLC, or take on a partner, that generally calls for an EIN too.

Form the entity first

Before you apply, the IRS says to form your corporation or LLC through the secretary of state.

This step matters. The IRS says your EIN application may be delayed if you don't form your entity with the state first.

Beneficial ownership reporting

Some corporations and LLCs may need to report their owners to FinCEN. FinCEN is a federal agency. The report lists who owns or controls the company. Beneficial owners are the people who own or control the company in the end. The IRS notes this on its EIN page.

How to apply

Can someone else apply for you? Yes. The IRS lets a third party apply for you. But you must have signed authorization for that person to apply on your behalf. A designee without a signed authorization does not meet the IRS rule.

One formatting note. The IRS says the business name you enter must conform to certain formatting rules.

What an EIN is not

An EIN is not the same as a DUNS number. The EIN is a tax ID from the IRS. The DUNS number is a business ID from Dun & Bradstreet. You can read more in our ein vs duns number comparison.

Our guide to business credit explains how it works. Our guide on how to establish business credit walks through the steps.

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