What is an EIN number?
An Employer Identification Number (EIN) is a nine-digit federal tax identification number assigned by the IRS. Businesses use EINs for federal tax reporting and identification. Tax-exempt organizations, estates, trusts, and certain other entities may also need one.
An EIN can often be referred to as:
- Federal tax ID number
- Business tax ID number
- FEIN
- Employer tax ID
Although people often say “EIN number,” the “N” already stands for “number.” In everyday searches, however, “EIN number” is a common phrase business owners use when they are trying to understand, find, or apply for their business tax ID.
What is an EIN used for?
An EIN helps identify a business for tax and operational purposes. Businesses may use an EIN when filing federal tax returns, reporting employment taxes, opening a business bank account, or applying for certain licenses and permits.
An EIN may also be needed when working with payroll providers, lenders, vendors, tax professionals, or government agencies. For sales tax purposes, it may be part of the business information used when registering with state tax agencies or managing tax accounts.
Requirements vary by state. Businesses should always confirm what information their state or local tax authority requires.
Who needs an EIN?
Many businesses and organizations need an EIN to manage taxes. According to the IRS, a business may need one if it hires employees, operates as a partnership or corporation, pays sales or excise taxes, changes business structures or ownership, or administers certain trusts, retirement plans, or estates.
Legal entities such as LLCs, partnerships, corporations, and tax-exempt organizations should generally form the entity through the state before applying for an EIN. The IRS notes that applying before the entity is legally formed may delay the EIN application.
Some sole proprietors may be able to use their Social Security number for federal tax purposes. Even so, a sole proprietor may still choose or need to get an EIN for business banking, state tax registration, hiring, privacy, or other operational reasons.
How to get an EIN number?
Eligible businesses can apply for an EIN online through the IRS. Applying directly through the IRS is free, and eligible applicants can receive an EIN in minutes. The IRS also limits EIN issuance to one EIN per responsible party per day.
If applying online is not an option, businesses can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. According to the IRS, applicants who fax Form SS-4 and provide a fax number can generally receive their EIN in about four business days. Businesses that apply by mail generally receive their EIN in approximately four weeks.
What do you need before you apply for an EIN number?
Before applying, make sure your legal entity has been properly formed if state formation is required. For example, an LLC or corporation should generally be formed through the state before the business applies for an EIN.
It is also helpful to gather your business information before starting the application. You may need your legal business name, mailing address, responsible party information, entity type, reason for applying, and expected business activity.
How to find your EIN number?
If your business already has an EIN but you cannot find it, start with the records you received when the EIN was first issued. The IRS recommends looking for the original notice issued when you applied for an EIN. You can also contact the bank that has your business account, check with agencies where you applied for state or local licenses, and review past business tax returns.
You may be able to find your EIN on:
- The IRS EIN confirmation notice
- A previously filed business tax return
- Payroll tax forms
- Business bank account paperwork
- Business loan or credit applications
- State tax registration documents
- Sales tax permits or business license records
- Accounting, payroll, or tax software
- Documents from your accountant, bookkeeper, or tax preparer
If you still cannot locate it, the IRS says authorized people can call the Business & Specialty Tax Line for help. The IRS will verify the caller’s identity and may provide the EIN by phone if the caller is authorized to receive it.
Can I do an EIN number lookup online?
There is no general public IRS EIN number lookup tool for every business. Some EINs may appear in public records, depending on the entity type and where the business has filed information.
For example, EINs may appear in tax-exempt organization databases, SEC filings, state business records, or vendor tax documents. For many small businesses, though, the best place to look is within their own tax, banking, payroll, or registration records.
If you are trying to find your own business EIN, start with your IRS confirmation notice and prior tax returns. Bank documents, payroll records, and state tax registration paperwork may also include it. If those records are unavailable, contact the IRS Business & Specialty Tax Line for help.
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What to do if your EIN is lost?
If your EIN is lost, avoid applying for a new one just because you cannot find the old one. In many cases, the EIN still exists and should continue to be used for the same business entity.
The IRS says there are two ways to confirm an EIN. You can request an entity transcript, or you can call the Business & Specialty Tax Line and request Letter 147C, EIN Previously Assigned. If the EIN was lost, misplaced, or forgotten, taxpayers or authorized representatives may contact the IRS to confirm an existing EIN or request EIN verification.
A business may need a new EIN when its ownership or structure changes. However, the IRS notes that a business generally does not need a new EIN simply because it changes its name, address, or responsible party.
Calling the IRS
If you call the IRS, have key business and identifying information ready before you start. This may include the legal business name, business address, responsible party name, responsible party taxpayer identification number, and your role or authorization to receive information for the business. The IRS will verify that the caller is authorized before providing EIN information.
The Business & Specialty Tax Line is open Monday through Friday from 7:00 a.m. to 7:00 p.m. local time. To help reduce wait times, call as close to 7:00 a.m. as possible.
EIN vs. sales tax permit: What is the difference?
An EIN is a federal tax identification number assigned by the IRS. A sales tax permit, seller’s permit, or sales tax license is different. These permits are issued by state tax authorities and allow businesses to collect sales tax where required.
Many businesses need both an EIN and a sales tax permit. For example, a retail store or restaurant may use its EIN for federal tax reporting and business banking. The same business may also need to register with the state to collect and remit sales tax.
Sales tax requirements vary by state. They can also depend on a business’s location, sales activity, and the products or services sold.
Why EIN information matters for sales tax
Accurate business information helps keep tax accounts organized. When a business registers for sales tax, opens tax accounts, files returns, or works with tax professionals, the EIN may be one of several required details.
A business may also need to provide its legal business name, address, ownership details, and other identifying information. Keeping these records accessible can make it easier to manage payroll, maintain state tax accounts, open business banking services, and support accurate tax reporting as the business grows.
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Frequently asked questions
Is an EIN the same as a tax ID number?
An EIN is one type of tax ID number. It is a federal tax identification number assigned by the IRS to identify businesses, tax-exempt organizations, estates, trusts, and certain other entities.
Is an EIN the same as a Social Security number?
An EIN and a Social Security number are both taxpayer identification numbers, but they are used differently. A Social Security number identifies an individual, while an EIN generally identifies a business or other entity for tax purposes.
Can a sole proprietor get an EIN?
Yes, a sole proprietor can apply for an EIN. Some sole proprietors may be able to use their Social Security number for federal tax purposes, but an EIN may still be useful for hiring employees, opening a business bank account, registering for state taxes, or keeping business and personal information separate.
Does an LLC need an EIN?
An LLC may need an EIN depending on how it is taxed, whether it has employees, and whether it needs to file certain federal tax forms. The IRS says an LLC will need an EIN if it has employees or must file certain excise tax forms. Many new single-member LLCs classified as disregarded entities may also need one for employment taxes, excise taxes, state tax registration, or banking requirements.
Can I use the same EIN for multiple businesses?
It depends on the business structure. The IRS says a sole proprietor does not need a new EIN simply because they own multiple businesses, but separate legal entities or ownership changes may require a different EIN.
How long does it take to get an EIN?
Eligible applicants who apply online through the IRS can receive an EIN immediately after the application is approved. Applying directly through the IRS is free.
Can I change my EIN information?
Some EIN account information can be updated with the IRS. Businesses can use Form 8822-B to report a change in business mailing address, business location, or responsible party, and responsible party changes must be reported within 60 days.
Do I need an EIN to collect sales tax?
An EIN and a sales tax permit are different, but a business may need both. Many states ask for federal business identification information when a business registers for a sales tax permit, so check your state tax authority’s requirements before collecting sales tax.
Can you cancel an EIN?
No, the IRS cannot cancel an EIN once it has been assigned. However, the IRS can close or deactivate the business account associated with the EIN if the business no longer needs it. The business must send the IRS a written request and file any required tax returns before the account can be closed.
