How to Apply for an EIN Online: 6 Simple Steps for Small Businesses

reading time: 12 minute(s)

Whether you’re selling candles online, training repair technicians, or opening a legal practice, we know that starting a business is exciting and full of momentum. Keeping that momentum matters, and one of the most important steps in setting up your business for success is getting an EIN.

The EIN application is simple, completely free, and can be completed in minutes. In 6 simple steps, we’ll show you how to apply for an EIN as a business owner, so you can spend more time building what you care about for the people you care about.

What is an EIN?

An EIN, or employer identification number, is a unique number that the IRS uses to identify your business for tax purposes. Think of an EIN as your business having a Social Security Number of its own. You will need this ID number to open business bank accounts, hire and pay employees, apply for business loans and lines of credit, obtain licenses, and file mandatory IRS tax forms.

Do You Need an EIN?

If you plan to hire employees or work with contractors, the answer is yes. Your EIN will be used to file 1099s at year-end. However, if you’re operating as a sole proprietor with no employees, you may not need an EIN, but you may want one to keep your business and personal activities separate.

Your business entity type plays a role in determining whether or not you need an EIN. LLCs, partnerships, joint ventures, corporations, or tax-exempt organizations typically need EINs.

Before You Apply, Prepare.

Having your information ready will make the EIN application process much smoother.

Before beginning, make sure you:

• Officially form your business entity with your state: Register your business with your state, typically through your Secretary of State, if required.

• Have your business details on hand; you will need:
  • Your legal business name and/or trade name
  • A physical business address and mailing address
  • The responsible party’s information. This is the person who controls or manages the business. Include their (or your) name and social security number (or ITIN)
  • The business start date (month and year)
  • Any additional ownership information if applicable

The online EIN application is designed to be a straightforward process and can be done on the IRS website. Once approved, you will receive an ID that can be used immediately.

How to Apply for an EIN Online: Step-by-Step

The official IRS form for applying for an EIN is Form SS-4, Application for Employer Identification Number. 

While you can complete and submit Form SS-4 by fax or mail, applying online is the fastest and most recommended method, and that’s exactly what we’ll walk you through below.

Step 1: Visit the IRS EIN application website to begin 
On the IRS website, you’ll find detailed information about the EIN application process.
This is the direct link to the application.

Step 2: Choose Your Business Structure
Select the legal structure of your business and indicate why you are requesting an EIN. These are multiple-choice questions, and each option includes detailed information about your choice. 

Step 3: Identify the Responsible Party
The IRS requires information about who is operating the business. You’ll provide a full legal name, Social Security Number or ITIN, and business role. Make sure this information is accurate to avoid future filing delays.

Step 4: Enter Business Location Information
You must have a physical U.S. business address where your business operates from. This cannot be a P.O. Box. 
If your mailing address is different from the physical address, you can list it separately. In this section, a P.O. box is allowed.

Step 5: Describe Your Business Activities and Review Information Carefully
Here, you’ll add additional business information, such as specific taxable activities, if you expect to hire employees, your primary business activities, and other details.

Step 6: Submit Your Application
After reviewing your information, you’re ready to submit your application. Your EIN will be generated immediately, and you can print or download your confirmation and new EIN for your records.

TaxBandits is Here to Help with Ongoing Compliance

As your business grows beyond formation and into ongoing responsibilities, TaxBandits is here to help simplify the filing process every step of the way. If you hire employees or contractors, we can help with payroll, federal and state tax filings, and more!

Learn more about our tools and resources that make the process feel much more manageable.