Obtain an EIN Number

After figuring out the jurisdiction and registering within it the next step is typically to obtain an Employer Identification Number. Unless you are a sole proprietorship / single member LLC without employees, you must obtain and EIN number for your business. For sole proprietorships and single member LLCs obtaining EIN is recommended but not mandatory if the owner / member uses his or her SSN or ITIN numbers as tax id. Corporations, multi-member LLCs, LLCs taxed as corporations and partnerships must obtain EIN even if they don't have any employees. Foreign single-member LLC owners who don't have a US social security number or ITIN number must obtain an EIN. EIN is used by IRS, state tax agencies, other government agencies, banks, lenders and credit bureaus to track the business entity. While the primary role of an EIN is to track entity's tax payments, it is also used by credit bureaus to assign credit rating to a business that lenders will use when making a decision to extend a loan to a business.

The easiest way to obtain an EIN is online at IRS' website. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

The application is free and only takes around 5 minutes to complete. When applying for an EIN a responsible party must be appointed in the application. This is an individual who runs the business such as the owner or the CEO. To apply online, the responsbile party must have a valid SSN, ITIN or EIN number. Responsible party can either apply by him or herself or allow a third party designee, typically an accountant or a lawyer to complete the application.

Form CP575 will either be mailed or displayed online and will serve as a confirmation of an EIN.

While the most common reason for applying for EIN is starting a new business, an EIN may also be obtained under other circumstances, such as when the ownership or the structure of the business has changed.

Non-Resident EIN Applicant

If the responsible party applying for an EIN number does not have a SSN or ITIN number instead of applying online, an application through mail or fax must be submitted by filling out form SS-4. The form can be found here. Here is some help on how to fill it out.

  • Line 1 enter the name of the company

  • Line 2 and 3 will most likely be left blank

  • Line 4 enter the mailing address of the business

  • Line 5 will most likely be left blank

  • Line 6 the county and the state of the businesses principal location

  • Line 7 name of the responsible party. If no SSN, ITIN or EIN enter "foreign" in the field

  • Line 8 yes if applying for an LLC and enter the number of members

  • Line 9 type of the entity

  • Line 10 in most cases the answer is "started a new business" enter the type such as "corporation"

  • Line 11 date business started

  • Line 12 most likely answer will be December

  • Line 13 enter number of employees business expects to hire in the US in the next 12 months. In most cases you'll enter the number under "other" tab

  • Line 14 used to simplify reporting process for employees. Since it's now done by payroll processors you may leave it blank

  • Line 15 fill in only if wages were already paid

  • Line 16, 17 type of the activity and short description

  • Line 18 only if the entity has applied for EIN in the past

  • Appoint third party designee (if someone else is applying for you and sign)

Mail this form to address:

Internal Revenue Service

ATTN: EIN International Operation (if mailing from US remove the word international)

Cincinnati, OH 45999

or fax it to 304-707-9471 if from outside the US or 855-215-1627 if from within the US

IRS will mail or fax the SS-4 with the EIN number on it.

Proof of EIN: 147-C

The CP575 letter when applied online or processes SS4 form when applied by mail / fax will serve as a proof of EIN. In case if you have misplaced it, you can request a proof of EIN, known as form 147-C. You must call IRS 800-829-4933 and request it. The IRS agent can either fax or mail 147-C to you.