An Employer Identification Number (EIN) is a unique identifier issued by the IRS to businesses for tax filing and reporting purposes. Tax professionals need to understand how to apply for and use an EIN. Below is a detailed guide on obtaining an EIN through IRS.gov.

Steps to Apply for an EIN on IRS.gov

1. Determine Eligibility

  • Who Can Apply:

    • You must have a valid Taxpayer Identification Number (TIN) (e.g., SSN, ITIN).

    • The applicant must be an individual (not a business entity) and have authorization to apply on behalf of the business.

  • When to Apply:

    • Apply for an EIN when starting a new business, hiring employees, opening a business bank account, or if required by your state for other purposes.

2. Visit the IRS EIN Application Portal

  • Go to the official EIN application page: IRS EIN Assistant.

  • Click on "Apply Online Now."

3. Understand the Online Application Window

  • The EIN Assistant is available only during specific hours:

    • Monday–Friday: 7:00 AM to 10:00 PM Eastern Time.

4. Gather Required Information

Prepare the following details before starting the application:

  • Type of Entity:

    • Sole Proprietor, LLC, Corporation, Partnership, or other.

  • Reason for Applying:

    • Starting a new business, hiring employees, opening a bank account, etc.

  • Business Details:

    • Legal business name.

    • Trade name (if applicable).

    • Physical business address (not a P.O. Box).

  • Responsible Party:

    • Name and TIN (e.g., SSN) of the individual responsible for the business.

5. Start the Application

  • Follow the step-by-step instructions in the EIN Assistant.

  • Choose the type of entity and enter your business information.

6. Review and Submit

  • Double-check all entries for accuracy.

  • Apply electronically.

7. Receive Your EIN Immediately

  • Once submitted, your EIN is generated and displayed on the screen.

  • Save and print the confirmation notice for your records.

Other Methods to Apply

If you cannot apply online, the IRS offers alternative methods:

  • By Fax: Submit Form SS-4 to the fax number listed in the form instructions. You’ll receive your EIN in about 4 business days.

  • By Mail: Send Form SS-4 to the IRS address specified for your state. Processing takes about 4 weeks.

  • By Phone (International Applicants): Call +1 (267) 941-1099 for assistance.

Tips for EIN Application

  1. Apply Early: Ensure you have your EIN before applying for business bank accounts or other registrations.

  2. One EIN per Day: The IRS allows one EIN issuance per day per responsible party.

  3. Use the Correct Name: Ensure the legal business name matches state and federal registrations.

Uses of an EIN

  • Filing business tax returns.

  • Opening a business bank account.

  • Applying for an Electronic Filing Identification Number (EFIN).

  • Establishing business credit.

This detailed process ensures you can apply for an EIN confidently and efficiently. Let me know if you'd like this converted into training material or a checklist!