4️⃣ EIN Registration

An Employer Identification Number (EIN) is a nine-digit federal tax identification number used to identify business tax accounts (employers, partnerships, corporations, trusts, estates, nonprofits, etc.).

Do not use an EIN in place of an SSN. Typical triggers requiring an EIN include hiring employees, operating a partnership or corporation, paying certain excise taxes, withholding on non-resident aliens, paying sales/excise taxes, changing business structure, or administering certain trusts or retirement plans.

The primary method to apply is through the IRS online EIN application for entities with a principal place of business in the U.S./territories, which offers immediate issuance. Online applicants must provide the responsible party’s SSN/ITIN/EIN.

Alternatives include fax (about 4 business days), mail (about 4 weeks), or phone for international applicants (267-941-1099). It's crucial to use only one method to avoid duplicate EINs.

The Form SS-4 is the formal application when not using the online tool, and third-party designees are permitted with specific rules. The EIN application must list the entity’s responsible party, who is the person controlling or disposing of funds/assets.

The responsible party’s TIN is required for online applications, and nominees are not permitted. The IRS limits EIN issuance to one EIN per responsible party per day to prevent misuse.

Changes to the responsible party or address must be reported using Form 8822-B within required timeframes. For practical timing, form your legal entity at the state level first (LLC/corp) before applying for an EIN to avoid IRS processing delays.

If an EIN is needed for banking or payroll, obtain it after state formation but before opening accounts or hiring. Single-member LLCs treated as disregarded entities for income tax often still need an EIN if hiring employees or for payroll/excise purposes.

S-corp or corporate elections do not negate the need for timely EINs. State interactions are also critical.

For example, California employers must register with the EDD and establish a payroll tax account within 15 days of paying over $100 in wages in a calendar quarter, and the EDD registration requires the nine-digit FEIN (EIN).

New York businesses must register with New York State (via NY Business Express or Department of Labor) for unemployment insurance, withholding, and wage reporting after obtaining a federal EIN, and new hires must be reported within approximately 20 days.

In Texas, employers must register with the Texas Workforce Commission for unemployment tax within 10 days of becoming liable, and the TWC Unemployment Tax Registration requires ownership and payroll information, including the federal EIN.

States commonly require separate registration for payroll/unemployment accounts, sales tax, or state withholding, where the EIN is a key identifier. Employer tax obligations tied to an EIN include Form W-2 reporting, Forms 941/944 (quarterly/annual federal payroll tax returns), FUTA deposits and reporting, state unemployment tax filings, and state withholding/sales tax responsibilities.

If an EIN is not obtained by a return/deposit due date, write 'Applied For' and the application date on returns and follow IRS guidance for payments. For special situations, foreign entities without a U.S. principal business cannot use the online tool and must apply by phone, fax, or mail.

A new EIN may be required in circumstances such as bankruptcy, incorporation, forming a partnership from a sole proprietorship, or establishing certain retirement plans. A practical checklist for LLC founders and US business owners includes:

An Employer Identification Number (EIN) is a nine-digit federal tax identification number used to identify business tax accounts (employers, partnerships, corporations, trusts, estates, nonprofits, etc.).

Do not use an EIN in place of an SSN. Typical triggers requiring an EIN include hiring employees, operating a partnership or corporation, paying certain excise taxes, withholding on non-resident aliens, paying sales/excise taxes, changing business structure, or administering certain trusts or retirement plans.

The primary method to apply is through the IRS online EIN application for entities with a principal place of business in the U.S./territories, which offers immediate issuance. Online applicants must provide the responsible party’s SSN/ITIN/EIN.

Alternatives include fax (about 4 business days), mail (about 4 weeks), or phone for international applicants (267-941-1099). It's crucial to use only one method to avoid duplicate EINs.

The Form SS-4 is the formal application when not using the online tool, and third-party designees are permitted with specific rules. The EIN application must list the entity’s responsible party, who is the person controlling or disposing of funds/assets.

The responsible party’s TIN is required for online applications, and nominees are not permitted. The IRS limits EIN issuance to one EIN per responsible party per day to prevent misuse.

Changes to the responsible party or address must be reported using Form 8822-B within required timeframes. For practical timing, form your legal entity at the state level first (LLC/corp) before applying for an EIN to avoid IRS processing delays.

If an EIN is needed for banking or payroll, obtain it after state formation but before opening accounts or hiring. Single-member LLCs treated as disregarded entities for income tax often still need an EIN if hiring employees or for payroll/excise purposes.

S-corp or corporate elections do not negate the need for timely EINs. State interactions are also critical.

For example, California employers must register with the EDD and establish a payroll tax account within 15 days of paying over $100 in wages in a calendar quarter, and the EDD registration requires the nine-digit FEIN (EIN).

New York businesses must register with New York State (via NY Business Express or Department of Labor) for unemployment insurance, withholding, and wage reporting after obtaining a federal EIN, and new hires must be reported within approximately 20 days.

In Texas, employers must register with the Texas Workforce Commission for unemployment tax within 10 days of becoming liable, and the TWC Unemployment Tax Registration requires ownership and payroll information, including the federal EIN.

States commonly require separate registration for payroll/unemployment accounts, sales tax, or state withholding, where the EIN is a key identifier. Employer tax obligations tied to an EIN include Form W-2 reporting, Forms 941/944 (quarterly/annual federal payroll tax returns), FUTA deposits and reporting, state unemployment tax filings, and state withholding/sales tax responsibilities.

If an EIN is not obtained by a return/deposit due date, write 'Applied For' and the application date on returns and follow IRS guidance for payments. For special situations, foreign entities without a U.S. principal business cannot use the online tool and must apply by phone, fax, or mail.

A new EIN may be required in circumstances such as bankruptcy, incorporation, forming a partnership from a sole proprietorship, or establishing certain retirement plans. A practical checklist for LLC founders and US business owners includes:

Form your entity with the state;

Determine if an EIN is needed;

Gather required information (legal name, responsible party TIN, etc.);

Apply online at IRS.gov/EIN or via mail/fax/phone;

Register with your state(s) for payroll tax, unemployment insurance, withholding, and sales tax;

Enroll in EFTPS/EFTPS Express for federal deposits and set up payroll systems;

Keep records, protect EIN documents, and update the IRS via Form 8822-B for changes. Practical compliance tips include

not listing nominee or temporary managers as the responsible party, avoiding duplicate EIN filings, not using an EIN in place of an SSN, and following IRS guidance if an EIN is not received by a due date.