Key Takeaways
- If your business employs workers, withholds taxes, or operates as a corporation or partnership, or meets other criteria, you will likely need an Employee Identification Number (EIN) to file your business taxes.
- You can apply for an EIN online, by fax, phone, or mail. If you apply online, you typically will receive your EIN immediately.
- During the application, you'll answer five short questions about the type of EIN, the reason for applying, and your name and Social Security number.
- After completing your application, save and print the official IRS document that includes your EIN for your records.
Obtaining an EIN
If you operate a business the IRS may require you to obtain an Employee Identification Number (EIN), which is also referred to as your business tax ID number. Each EIN is unique in the same way that your Social Security number is. The number allows the IRS to identify your business and requires you to provide it on all of your tax documents and forms. Fortunately, the IRS makes it very simple to obtain a new EIN.
Step 1—Determine whether you need an EIN
If your business employs workers, withholds taxes on the wages and salaries it pays or you operate the business as a corporation or partnership, then the IRS requires you to obtain an EIN number. An EIN number is also necessary for estates, trusts and non-profit organizations, to name just a few. However, if you operate a sole proprietorship, you can still obtain an EIN and use it in the same way even though it’s only required if you have employees.
Step 2—Apply for an EIN
You can apply for your EIN by fax, phone or mail; however, the IRS prefers that you submit your application online. When you do, you can receive your EIN immediately after completing the short application. Go to the IRS website to access the EIN Assistant page and click on “Begin Application” at the bottom to get started.
TurboTax Tip:
If you lose your EIN, you can contact the IRS Business & Specialty Tax Line.
Step 3—Answer five short questions
The first question requires you to select the type of EIN you are applying for such as a sole proprietorship, corporation, LLC, partnership or estate. You then need to choose the option that best describes why you are applying for an EIN. This can be to start a new business, for banking purposes or for a range of other reasons. The online questionnaire then requests your name and Social Security number before you can finish your application.
Step 4—Save the document with your EIN
Once you complete all sections of the application, the system will generate a new EIN that you can begin using immediately. An official IRS document will load onto your computer, which confirms that your application was successful and provides your EIN. It’s a good idea to save a copy on your computer and to print one for your records in case you forget the EIN.
EIN Tips
- If you ever lose your EIN you can always call the IRS Business & Specialty Tax Line at 800-829-4933. When you call, the representative will require some identifying information to ensure you are the person authorized to receive the EIN.
- Once you finalize your application and are assigned an EIN, the number can never be canceled. However, if you find that you don’t need the EIN, the IRS can close your business account, but the EIN remains available to you if you ever need it in the future; it will not be reassigned.
With TurboTax Live Business, get unlimited expert help while you do your taxes, or let a tax expert file completely for you, start to finish. Get direct access to small business tax experts who are up to date with the latest federal, state and local taxes. Small business owners get access to unlimited, year-round advice and answers at no extra cost, maximize credits and deductions, and a 100% Accurate, Expert Approved guarantee.
