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Tips and Insights For Getting a Business Tax ID (EIN)

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Tips and Insights For Getting A Tax ID

Any business that withholds taxes, employs workers, or operates as a partnership or corporation is required to obtain a business tax ID from the Internal Revenue Service (IRS). A business tax ID is also known as an Employer Identification Number (EIN). Like a social security number, every EIN is a nine-digit unique number that helps identify a business.

A business owner must meet their tax obligations, so you’ll need to decide whether to secure an EIN from the IRS when you register with the appropriate state government agency. The IRS offers a free online application that most businesses can complete in one sitting.

Is a Tax Id the Same as an Ein?

A Tax ID and EIN are the same thing but referred to by two different names. They both refer to a unique nine-digit number.

Here Is How To Secure the EIN for Your Business

Most businesses should get a Federal Employer Identification Number (FEIN). Some of the primary reasons a business should obtain the FEIN include:

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Speak With an Accountant

Before you set up your business, it’s a good idea to consult your accountant on getting the correct paperwork required to file taxes. A self-employed owner doesn’t necessarily need a tax ID number. But any business with employees, or one that deals with wages, salaries, taxes, or operates as a corporation or partnership, does require an EIN. The EIN is also required for trusts, estates, and NGOs, among other entity types. Sole proprietors can get one too, even if it isn’t required.

Apply for the Business Tax ID Number

You can apply by phone, mail, or fax, but the quickest way is to apply online. If your business is a corporation or LLC, form your entity with your state’s secretary of state first — applying for an EIN before your entity is officially formed can delay your application.

To apply online, go to the IRS website, navigate to the EIN Assistant page, and click “Begin Application” to get started. Plan to complete the application in one sitting — it typically takes 10 to 15 minutes, and you can’t save it partway through to finish later.

If you’d rather apply by phone, call the IRS Business and Specialty Tax Line at (800) 829-4933 and choose the EIN option from the menu. To apply by mail, an entity owner can fill out Form SS-4 and send it to the IRS — expect roughly four weeks for mail, or a few business days if you fax it in with a return fax number. The online application remains the fastest option; the other methods can take days to weeks longer.

Keep in mind the IRS allows only one EIN application per responsible party per day, whether you apply online, by phone, mail, or fax. If your first attempt doesn’t go through, you’ll need to wait until the next day to try again.

Guidelines and Rules of Your Application

Before you begin the application, read through the guidelines and rules that govern it. A quick review upfront will help you prepare the information you need and get through the process accurately on the first try.

Complete the Application Steps

The online application walks you through several sections rather than a single form. You’ll choose the type of entity you’re applying for — corporation, sole proprietorship, estate, partnership, or LLC — and select the reason you need an EIN, such as banking or starting a new business. Later in the application, you’ll be asked to provide the responsible party’s Social Security number and name before you can submit.

Save Your Document

Once you complete the online application, the system generates your new EIN and you can start using it immediately. The IRS will also email you an official confirmation document that you can download and save. It’s proof that your online application succeeded, and it includes your EIN.

Save a copy on your computer or print one for your records in case you need to look up your EIN later. This number matters for future dealings like opening a business account, filing taxes, or signing contracts.

Here Are Some EIN Tips

If you lose your business tax ID, call the IRS Business and Specialty Tax Line at (800) 829-4933. A representative will ask for information to confirm you’re the authorized person for that EIN.

Once the IRS assigns you an EIN, it never reassigns that number to another business, even if you close your account. If you decide you no longer need your EIN, the IRS can close the IRS business account tied to it upon request — this is different from closing a bank account, which is handled by your bank, not the IRS. The number itself stays on record and can be reactivated if you need it again later.

Watch out for third-party websites that charge a fee — sometimes $50 to several hundred dollars — to “file” your EIN application for you. The IRS application itself is always free. If a site’s address doesn’t end in .gov, be cautious before entering your information or paying for something you can get directly from the IRS at no cost.

Take Away

Some online organizations offer incorporation services and charge a fee to help you get an EIN. But you can apply online yourself for free, and the IRS website is the simplest and quickest way to do it.

Set up your business first, since the IRS will ask for your legal business name and formation date. When using different agencies to apply for the same business, make sure the information stays consistent — the name you give the IRS should match what you register with any other agency, right down to punctuation.

Key Points and Facts About Getting a Business Tax ID

  • A business tax ID and an EIN (Employer Identification Number) are the same nine-digit number, issued by the IRS.
  • Businesses with employees, or that operate as a corporation, partnership, trust, or estate, are generally required to get an EIN.
  • Sole proprietors aren’t required to get one but can still apply if they want.
  • Applying online through the IRS website is free and is the fastest method — usually 10 to 15 minutes.
  • You can also apply by phone, mail, or fax, though these take longer.
  • The IRS allows only one EIN application per responsible party per day.
  • An EIN is never reassigned to another business, even after an account is closed.

Action Steps for Getting a Business Tax ID

  • Confirm your business needs an EIN based on your entity type and whether you have employees.
  • If forming a corporation or LLC, complete your state formation paperwork first.
  • Gather your legal business name, formation date, and responsible party’s Social Security number.
  • Go to the IRS website, open the EIN Assistant, and complete the online application in one sitting.
  • Save the confirmation document the IRS emails you, and keep a backup copy.
  • Use the same business name and details across every agency you register with.

Checklist for Getting a Business Tax ID

  1. Confirm eligibility
    • Determine if your business structure or activities require an EIN
  2. Form your entity first (if applicable)
    • Complete state formation for corporations and LLCs before applying
  3. Gather your information
    • Legal business name, formation date, and responsible party details
  4. Choose your application method
    • Online (fastest, free), phone, mail, or fax
  5. Complete the application
    • Set aside 10-15 minutes for the online application; it can’t be paused partway through
  6. Save your confirmation
    • Download the IRS confirmation document and keep a backup copy

FAQ: Getting a Business Tax ID

Is a Tax ID the same as an EIN?

  • Yes. Both terms refer to the same nine-digit number issued by the IRS.

Does it cost anything to get an EIN?

  • No. Applying directly through the IRS is free, whether you apply online, by phone, mail, or fax.

How long does the online application take?

  • Typically 10 to 15 minutes, and it must be completed in one sitting since it can’t be saved partway through.

Can I apply for more than one EIN in a day?

  • No. The IRS limits each responsible party to one EIN application per day, regardless of the method used.

What happens if I no longer need my EIN?

  • The IRS can close the business account tied to that EIN upon request, but the number itself is never reassigned or reused.

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