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When you open a new business, applying for an employer identification number (EIN) may need to be near the top of your priority list. While not every business needs an EIN, many do. Nearly 5.4 million businesses applied for new EINs in 2021. Getting an EIN for your business is free. But the application process does require some legwork on the part of the business owner. Here’s everything you need to know about EINs. What Is a Business Tax ID Number?A federal tax ID number, or an EIN, is a nine-digit number that identifies your company with the IRS. This nine-digit identifier is a bit like a Social Security number (SSN), but for your business. Once you establish an EIN, your business can use the number to pay both federal and state taxes. An EIN may also empower your business to complete the following actions: How to Find Your EIN OnlineIf you previously applied for an EIN and have forgotten it, here are a few possible ways to look up your business tax ID number. 1. Check Your EIN Confirmation LetterThe IRS will notify you when it approves your EIN application. Depending on how you apply, you may receive a confirmation letter with your EIN online at the time it was issued or via mail or email. Look back through your paper and digital business files. You or whoever helped you apply may have saved a copy of it for future reference. 2. Check Other Places Your EIN May Be RecordedAside from confirmation letters from the IRS, you may be able to find a copy of your EIN on other important documents. For example, you might want to take a look at previously filed tax returns. Or you might look over old financing documents, like applications for business loans or lines of credit. The IRS also suggests that you might be able to get a copy of your EIN by contacting institutions with which you shared that information in the past such as your business bank or local and state business license agencies. 3. Call the IRSA third way to look up your EIN is to call the IRS. You can reach out to the Business and Specialty Tax line by calling 800-829-4933. The department is open Monday through Friday between 7:00 am and 7:00 pm local time. When Should My Business Consider an EIN?Some businesses may be able to operate without an EIN. However, according to the IRS, you may need to apply for one if your business plans to:
If you’re unsure whether your business needs an EIN, you can talk to a certified accountant or tax professional for guidance regarding your individual situation. How to Apply for an EINYou can apply for an EIN from the IRS in a few different ways. The fastest and preferred way to apply is online. However, here’s a look at all four of your options:
Internal Revenue Service You can look up alternative mailing addresses for your EIN application on the IRS website. Your business needs to be located in the U.S. or one of the U.S. Territories to be eligible for an EIN number. As an applicant, you must also have a valid SSN or other acceptable Taxpayer Identification Number (ITIN, EIN, etc.). Unless you hire a third party to manage the process for you, applying is free of charge. How Long Does It Take to Get an EIN?The amount of time it takes your business to receive an EIN can vary. Your results will depend on how you apply for your business tax ID number in the first place.
How to Find an EIN for Another BusinessThere may come a time when you need to look up another company’s EIN for verification purposes, risk assessment or other reasons. Here are a few potential ways you might be able to find a business’ EIN when you need it:
How to Cancel an EINThe IRS can close your business account and cancel your EIN upon request. You must send a letter to the IRS with the following details:
You can mail your notice to the Internal Revenue Service, Cincinnati, OH 45999. Note that even after you close a business, the EIN may still be associated with that entity. The IRS won’t issue the same nine-digit identification number to a business in the future. Find the Best Small Business Loans of 2022Frequently Asked Questions (FAQs)Can I look up an EIN number?The IRS doesn’t provide a public database you can use to look up EIN numbers for your own company or others. However, you can look at your EIN confirmation letter or other places your number may be recorded, including previously filed tax returns or old financing documents. Is an EIN the same as a business ID number?The terms EIN and business tax ID number are interchangeable. However, a business may have several different types of identification numbers such as a D-U-N-S Number, state ID number, business license number and more. The IRS doesn’t charge a fee to apply for an EIN number. The only time you might incur any fees where an EIN is concerned is if you hire a third party to manage the application process on your behalf. |