How to Get an EIN for Your Startup?

Just as individuals need a Social Security number for tax purposes, businesses require an  Employer Identification Number (EIN) to operate legally and fulfill the tax obligations. 

EIN is not only necessary to fulfill the tax requirements and filing the taxes, but having an EIN in hand can help you avail loans easily and build better relations with vendors as EIN proves the legitimacy of your business.

However, despite the clear advantages that EIN has, nearly one-third of new businesses face delays in their incorporation and launch due to confusion about the EIN application process.

Many new business owners believe that obtaining an EIN involves complex procedures and lengthy waiting periods. 

But the reality is quite different. The IRS has modernized its systems, and in 2025, most applications submitted through their online portal receive an instant approval. 

In this guide, we’ll demonstrate the EIN application process and provide a clear, step-by-step approach to securing your business's tax identification number. 

Let us dive into the process.

‍

What is an Employer Identification Number (EIN)?

An Employer Identification Number (EIN) is your business's unique nine-digit identification number issued by the Internal Revenue Service (IRS). It serves as your business's identifier that states that the business is legally allowed to operate in the United States.

The EIN is provided completely free by the IRS through their online portals, that  allows you to legally hire employees, open business bank accounts, and process payrolls.

Here are the core functions of EIN:-

1. EIN is required to fulfill the tax and employment compliance 

An EIN is essential for managing your business's tax obligations. You need it to process payroll (employees salary) and submit employment tax returns to the IRS. This helps establish the foundation for proper employer-employee tax compliance and ensures that your business meets federal requirements.

2. EIN builds a foundation for your banking needs

EIN is required to open a business bank account or set up merchant services. Financial institutions across the United States require this number to verify your business's identity and open new bank accounts. 

3. EIN is essential to file taxes

Your EIN enables tax management, including filing quarterly estimated taxes and annual business returns. If your business falls under a specific tax obligation, such as excise taxes, you need to use your EIN for these filings as well. 

4. EIN helps to create business credit

Unlike personal credit, which uses your Social Security number, your EIN helps you apply for business credit. Having good business credit is crucial when applying for business loans.

Does Your Business Need an EIN?

While having an EIN is an added benefit for many businesses, there are specific times when the law says you must have one. 

Here are the essential business situations where an EIN is required:

• All businesses planning to hire employees must have an EIN for payroll processing and tax reporting to federal and state authorities.
• Corporations and partnerships require an EIN upon formation, regardless of size or employee count, including C-corps, S-corps, and LLPs.
• Businesses offering retirement accounts, pension plans, Keogh plans, or IRA accounts need an EIN to maintain federal compliance.
• Companies in regulated industries like alcohol, tobacco, or firearms must obtain an EIN before starting operations due to excise tax requirements.
• An EIN is mandatory for businesses acting as withholding agents for non-resident income or managing trusts, estates, and real estate investments.

Here is a list of primary business scenarios where EIN is essential:

‍

How to Obtain an EIN?

We have curated a step-by-step guide on how to apply for an EIN, discussing documents and essential items required..

i) Documents and Information required to apply for EIN

The IRS requires specific documentation and information to verify your startup’s status and business activities.

Take your time to gather all necessary items before starting your application. Remember, the online application must be completed in one session, so having everything ready is essential.

• Valid government-issued identification of the principal officer, owner, or partner of the startup.
• Business formation documents; examples being the Articles of Incorporation, LLC Operating Agreements, etc.
• Business license or permit, required in certain states
• Proof of business address verifying the official physical address of your startup
• Previous tax returns, if your business has been operating for more than one financial year

A quick checklist for information required before applying for EIN:

1. Legal name and trade name of your startup.
2. Social Security Number or ITIN of the person applying for EIN for verification purposes.
3. Physical business address and mailing address.
4. Start date or acquisition date of your business.
5. Number of employees expected in the next 12 months.
6. Principal business activity and type of products/services offered.
7. Business structure (corporation, LLC, partnership, etc.)

ii) Different Application Methods to Obtain an EIN

There are several simple ways to apply, including online through the IRS website. But, if you live outside the United States and want to start a business here, you can even apply via telephone:

Let us have a detailed look at all the application methods:-

1. Online Application

The online application through the IRS website is the fastest and most efficient method for most startups. 

This system guides you through Form SS-4 step by step, with built-in validation to help prevent errors. Upon successful submission, you will receive your EIN immediately. 

You need to complete the application in one session, as the system doesn't save partial applications for security reasons.

2. Fax Application

To apply by fax, you must complete a paper Form SS-4 and fax it to the IRS at the appropriate number based on your business location. 

While this method takes longer than an online application, it's helpful when the online system is unavailable or you need to submit additional documentation. 

The IRS typically processes faxed applications within 4-5 business days and returns your EIN via fax.

3. Mail Application

Mailing your EIN application involves sending a completed Form SS-4 to the designated IRS address. 

This method takes the longest but might be necessary for startups with complex ownership structures or those requiring extensive supporting documentation. 

Keep copies of all submitted materials and consider using certified mail with tracking for security purposes.

4. International Phone Application

The IRS offers international applicants a dedicated phone service to obtain an EIN. 

Call 267-941-1099 (not a toll-free number) between 6:00 a.m. and 11:00 p.m. (Eastern Time) Monday through Friday. 

The IRS representative will help complete Form SS-4 over the phone. This method requires fluency in English and having all necessary information readily available during the call.

‍

What are the Next Steps After Getting Your EIN?

Your first few weeks with an EIN are crucial for establishing proper business operations; your EIN requires immediate attention and proper documentation. 

Here's what you need to do:

• Open a business bank account using your new EIN and startup documentation.
• Set up your business accounting system and link your EIN for tax purposes.
• Register with state tax agencies if required for your business type.
• Update your business licenses and permits with your EIN.
• Provide your EIN to vendors, clients, and contractors as needed to file taxes effectively.

Additionally, here are documentation requirements for security purposes:-

• Create digital and physical copies of your EIN confirmation letter.
• Store the original EIN letter (CP 575) in a secure, fireproof location.
• Keep a secured digital scan of your EIN documentation in cloud storage.
• Maintain a list of where you've used your EIN for business purposes.
• Document all business accounts opened using your EIN.

Implement strict access controls and monitor who has control over the EIN, limiting EIN access to essential personnel only. 

‍

What to do if you Lose your EIN?

While it is certainly better to prevent losing your EIN in the first place, the IRS recognizes that these situations occur and has created multiple recovery methods to help business owners regain access to their numbers quickly.

Here are different methods through which you can recover your EIN.

1. Check your documentation

The first method requires you to review your tax documents, old bank statements, or previous tax fillings. 

Your EIN is mentioned on these documents, making them the quickest way to recover your number. Pay special attention to any IRS notices, payroll tax returns, or your original CP 575 notice. 

These official documents contain your valid EIN and are typically stored with other important business paperwork.

2. Follow up with the financial institutions

If you have opened a business bank account, your bank will have your EIN on file. 

Contact your account manager or visit your local branch with proper identification and business documentation to request this information. 

Banks maintain strict records of business identification numbers for compliance purposes, making them a major source for recovery.

3. Access your previous tax records

Log into your tax preparation software or contact your accountant if you have filed business taxes before. 

Your EIN would have been used for these filings and should be easily accessible in these records. 

Professional tax preparers are required to maintain records for several years, which includes your business's EIN.

4. Contact IRS directly

If the above methods don't work, contact the IRS Business & Specialty Tax Line at 800-829-4933. 

Be prepared to verify your identity as an authorized person by providing:

• Your name as it appears on business documents
• Your Social Security Number or ITIN
• Business name and current address
• Any previous business addresses
• Type of business entity
• Principal business activity

‍

When and How to Update EIN?

As your startup grows and evolves, certain changes in your business will require updating your EIN information with the IRS. 

Here’s the list of business changes requiring EIN updates:-

• Changing your business structure, example: from sole proprietorship to corporation
• Acquiring or merging with another business.
• Creating a new corporation after bankruptcy.
• Inheriting or purchasing an existing business.
• Establishing a subsidiary of your company.

Note -  While these changes require updates to your EIN information, most won't require a completely new EIN.

To update your EIN information, you need to submit written documentation explaining the nature of the change, along with supporting legal documents such as articles of incorporation, merger agreements, or new partnership documents. 

All submissions must be signed by an authorized person who is typically an officer, owner, or partner of the business.

The IRS handles updates based on complexity and completeness of documentation. Once your changes are reviewed, the IRS will provide written confirmation officially documenting the updates to your EIN information.

‍

How to apply for EIN as an International Business?

Entering the US market as an international business owner requires additional requirements for EIN applications. 

While the basic concept remains the same, international applications involve specific procedures designed to accommodate foreign business structures while maintaining US tax compliance standards.

1. Canadian Business

Canadian companies must provide their federal Business Number (BN), a unique 9-digit identifier issued by the Canada Revenue Agency. 

Additionally, they need to submit their provincial registration documents, which vary by province (e.g., Ontario Business Registry number or British Columbia Registration ID). 

All documents should include official English or French versions.

2. European Union Business

EU-based businesses need to submit formation documents, including their Articles of Association and European VAT registration. 

These documents must be apostilled (officially certified) in accordance with the Hague Convention standards. 

For example, a German GmbH would provide their Handelsregister extract, while a French SARL would submit their Kbis extract.

3. Asian Businesses

Businesses from Asian countries must provide all documentation with certified English translations. 

For instance, Japanese companies need to submit their tokibo tohon (company registration), while Chinese businesses must provide their business license and organization code certificate. 

The translations must be completed by certified translators and notarized.

4. United Kingdom Businesses

UK businesses must submit their Companies House registration, which includes their unique company number and registered office address. 

They also need to provide their VAT registration number if their turnover exceeds the current threshold. Additional documents include the Certificate of Incorporation and Memorandum of Association.

5. Mexican Businesses

Mexican entities must submit their RFC (Registro Federal de Contribuyentes) number, which serves as their tax identification in Mexico. 

The acta constitutiva (articles of incorporation) must also be provided, along with certified English translations. 

These documents should be notarized and include the company's legal representative information.

‍

Documents required to apply for EIN as a Foreign Applicant

When applying for an EIN as an international business owner, you need to provide specific documentation to verify your identity and business legitimacy. 

Here's what you need:

1. Personal Identification Documentation

You must submit a valid international passport or government-issued ID with a certified English translation. The documents must be current, clearly visible, and properly notarized if translated.

2. Business Registration Documentation 

Provide official registration documents from your country of origin showing your company's legal existence, including articles of incorporation or business licenses. 

All documents must include certified English translations and clearly display your company's legal name, registration number, and formation date.

3. USA Business Presence Documentation 

If you are already established in the United States, submit state level registration certificates, DBA filings, and any relevant business licenses or permits that demonstrate your legitimate USA business presence.

4. Address Verification Documentation 

Submit proof of your business address for both your home country and USA locations through recent utility bills, lease agreements, official government correspondence, or bank statements. 

Documents should be under three months old and clearly show your business name and address.

5. Business Activity Statement

Prepare a written statement describing your USA  business operations, including your business model, expected revenue sources, employment plans, and operational timeline. 

This helps the IRS properly classify your business for tax purposes.

Note - International applications require submission by phone (267-941-1099) or fax, with a typical processing time of 4-6 weeks for document verification

‍

How to Manage Multiple EINs?

As your business ventures expand, you might find yourself managing multiple EINs for different entities. 

This commonly occurs when you are operating several businesses, overseeing various subsidiaries, or maintaining separate entities for different business activities. 

To address this issue, the IRS has established a specific regulation known as the "one-EIN-per-day" rule for issuing employer identification numbers. 

Under this rule, a responsible party (whether an individual or business entity) can receive only one EIN per business day. 

For example, if you're establishing three separate businesses, you need to space your applications across three different business days. This regulation helps the IRS maintain accurate records and prevent potential fraud by ensuring proper documentation and verification for each unique business entity.

Here’s how to manage multiple EINs:-

• Create a tracking system that includes each EIN, associated business names, and key registration dates.
• Implement a digital filing system with separate folders for each entity's tax and legal documents.
• Set up automated reminders for important deadlines specific to each business entity.
• Document all financial accounts, vendor relationships, and contracts associated with each EIN.
• Maintain updated contact information for professional services (accountants, lawyers) tied to each business.
• Establish clear naming conventions for all documents to prevent confusion between entities.
• Schedule regular reviews of EIN usage and documentation for each business.

‍

Frequently Asked Questions

1. Are there any fees associated with getting an EIN?

The IRS provides EIN applications completely free of charge. While some third-party services might offer to obtain an EIN for a fee, you can apply directly through the IRS website, phone, or mail without any cost. 

2. What's the typical timeline for receiving an EIN?

Online applications through the IRS website receive their EIN immediately upon successful submission. If you apply by phone, you'll receive your EIN during the call. However, fax applications typically take about four business days, while mail applications take up to four weeks. International applicants should expect 4-6 weeks processing times regardless of the application method.

3. Can I apply for multiple EINs in one day?

No, the IRS enforces a strict "one-EIN-per-day" rule for each responsible party. If you need multiple EINs for different businesses, you must space your applications across separate business days. 

4. What should I do if I lose my EIN?

If you've lost your EIN, you can recover it by checking past tax returns, bank documents, or previous business filings where your EIN was used. If these aren't available, contact the IRS Business & Specialty Tax Line at 800-829-4933 with your identifying information to retrieve your number.

5. Do I need a new EIN if my business structure changes?

The need for a new EIN depends on the type of structural change. Converting from a sole proprietorship to a corporation or partnership requires a new EIN, while changing from a sole proprietorship to an LLC typically doesn't. Similarly, corporations that receive a new charter from the state require a new EIN, but simple name changes don't necessitate one.