Your Guide to a Business Tax ID
Getting a Business Tax ID, or Employer Identification Number (EIN), is a crucial step in formalizing your business. This interactive guide simplifies the process, walking you through each stage from determining your need to understanding the timeline.
Do You Need a Business Tax ID?
Not every business needs an EIN, but many do. It's required for tax purposes and other business operations. Use this interactive checklist to see if you likely need to apply for one.
Check any applicable boxes to see your result.
How to Apply for a Business Tax ID
The IRS provides several ways to apply for your EIN. The online method is the fastest and most recommended. Explore the different methods below to find the one that best suits your needs.
Online Application (Recommended)
This is the fastest method. Your EIN is issued immediately upon completion of the application.
- Availability: The online application is available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time.
- Process: You must complete the application in one session; you cannot save and return later.
- Requirements: The principal officer, general partner, grantor, owner, or trustor must have a valid Taxpayer Identification Number (SSN, ITIN, or existing EIN).
- Outcome: Receive your EIN instantly.
What You'll Need to Apply
Gathering the necessary information beforehand will make the application process much smoother. Here’s a list of the key details you'll need, regardless of how you apply.
Business Name & Address
The legal name and mailing address of your business.
Business Structure
E.g., Sole Proprietorship, Partnership, Corporation, LLC, etc.
Responsible Party's Info
Full name and their U.S. Taxpayer ID (SSN, ITIN, or EIN).
Business Start Date
The month and year your business began its operations.
Reason for Applying
E.g., starting a new business, hiring employees, etc.
Number of Employees
Expected number of employees in the next 12 months (if any).
Application Processing Timeline
The time it takes to receive your Business Tax ID depends heavily on the application method you choose. The difference can be significant, from minutes to weeks.
Frequently Asked Questions
There is no difference. "Business Tax ID" is a common term for an Employer Identification Number (EIN). An EIN is a nine-digit number assigned by the IRS to businesses for tax filing and reporting purposes. They are functionally the same thing.
Yes, absolutely. The IRS provides EINs for free. Be wary of websites that charge a fee for this service. You should always apply directly through the official IRS website or by submitting Form SS-4 yourself.
If you are a sole proprietor with no employees, you can often use your SSN for business taxes. However, you will need an EIN if you plan to hire employees, operate as a corporation or partnership, or file certain tax returns. It's also often required to open a business bank account.
If you applied online, you cannot change the application once submitted. If you haven't yet submitted, you can correct it. If you've already received your EIN, you'll need to send a letter to the IRS with the correct information. The procedure varies based on the type of error.