Taxes are universal. To file taxes, you need a taxpayer identification number. For most U.S. businesses, that means getting an Employer Identification Number, or EIN. Think of these taxpayer IDs as social security numbers, but for businesses instead of individual people.
Of course, there are some exceptions – not all businesses are required to have taxpayer IDs. In this article, you’ll learn whether you need an EIN, and if so, how to apply for one.
Who Is Required to Have a Taxpayer ID Number?
Your organization needs a taxpayer ID number if you answer “Yes” to any of these questions:
- Do you have employees?
- Is your business a corporation?
- Is your business a partnership?
- Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
- Do you withhold taxes on income (other than wages) paid to a non-resident alien?
- Do you have a Keogh plan?
- Is your business involved with any type of trust organization (EXCEPT certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns)?
- Is your business involved with any estates?
- Is your business involved with any real estate mortgage investment conduits?
- Is your business involved with any non-profit organizations?
- Is your business involved with any farmers’ cooperatives?
- Is your business involved with a retirement plan administrator?
If any of the above apply to you, your business must apply for an EIN for use on tax forms. But even if you answered “No” to every question, you might be able to apply for an EIN anyway.
For example, sole proprietorships can legally file taxes using their social security number instead of an employer ID number. However, obtaining a separate business taxpayer ID number can protect you from issues like identity theft. Some sole proprietors use EINs on tax documents to protect their personal information, even though it’s not a compliance requirement.
How to Apply for a Taxpayer ID
Businesses can apply for employee ID numbers through the IRS. There are four easy ways to apply.
Apply Online
The IRS website’s EIN Assistant lets you complete the application process online. You’ll receive an EIN immediately upon completing the required forms, and you can start using it right away. Note that you’ll have to complete all forms in a single session; there’s no option to save a partially completed application.
Make sure you select an organization type before you begin this process. You can apply as a:
- Sole Proprietor
- Partnership
- Corporation
- Limited liability company (LLC)
- Estate
- Trust
- Bankruptcy estate (individual)
- Block/tenant association
- Church
- Church-controlled organization
- Community or Volunteer Group
- Employer/Fiscal Agent
- Employer Plan
- Farmers’ Cooperative
- Government (Federal/Military)
- Government (Indian Tribal Governments)
- Government (State/Local)
- Homeowners/Condo Association
- Household Employer
- IRA
- Memorial or Scholarship Fund
- Plan Administrator
- Political Organization
- PTA/PTO or School Organization
- REMIC
- Social or Savings Club
- Sports Teams (community)
- Withholding agent
- Other Non-Profit/Tax Exempt Organizations
The person filling out the application (ie the principal officer, owner, trustor, general partner, grantor, etc.) must have a valid taxpayer ID number to use the online application. That ID number could be a social security number, an alternate EIN, or an individual taxpayer identification number.
Paycor for Small Business
Curious about how Paycor can help your small businesses? We’ve got you covered.
- Check out our roundup of Small Business Resources
- View our Plans & Pricing
Apply by Phone
If you’re based outside the U.S., the IRS recommends applying by phone. To obtain your EIN, call (267) 941-1099 (NOT a toll-free number) during the hours of 6 am-11 pm Eastern Time, Monday through Friday.
The person who makes the call should be prepared to answer questions about Form SS-4, Application for Employer Identification Number.
Apply by Mail
To apply by mail, complete Form SS-4 with all relevant and required information. Residents of the 50 states or Washington, D.C., should mail it to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
If you have no legal residence or business address in the U.S., mail the form to:
Internal Revenue Service
Attn: EIN International Operation
Cincinnati, OH 45999
Allow at least four weeks for the IRS to process your mail-in application.
Apply by Fax
To fax in your EIN application, you’ll also complete Form SS-4 – the same one used for a mailed application.
If you have a legal residential or business address in the U.S., fax your completed form to (855) 641-6935.
If you have no legal address of any kind in the 50 states or Washington, D.C., but are located within the U.S., fax your application to (855) 215-1627.
If you are located outside the U.S., fax your application to (304) 707-9471.
How Paycor Helps
If you and your business need guidance on how to obtain a taxpayer ID number, consider reaching out to a payroll and tax service. Paycor helps businesses stay compliant with complex regulations, including tax requirements. Connect with us to learn more about how our tools can support your business.
