Get EIN/Tax Number

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number or Federal Employer Identification Number (FEIN), is a unique nine-digit identifier assigned by the Internal Revenue Service (IRS) to businesses and other entities operating in the United States. It is used for tax purposes and is analogous to a social security number for individuals.

Businesses, corporations, partnerships, and certain other entities use the EIN to report financial information to the IRS, such as income, employment taxes, and other business-related transactions. The EIN is also necessary for opening a business bank account, applying for business licenses, and fulfilling other legal and financial obligations.

Obtaining an EIN is typically a requirement for businesses, and it helps the IRS track and identify entities for tax-related matters. The application for an EIN is free and can be done online, by mail, fax, or phone through the IRS.

Several types of entities require an Employer Identification Number (EIN) for various legal and tax purposes. Here are common entities that need an EIN:

1. Businesses and Corporations:

   • Sole Proprietorships that have employees.
   • Partnerships.
   • Limited Liability Companies (LLCs).
   • Corporations.

2. Nonprofit Organizations:

   • Nonprofit organizations, charities, and foundations.

3. Trusts and Estates:

   • Trusts, particularly those with income generated.

4. Employers:

   • Any entity that hires employees, whether it’s a business, nonprofit, or government entity.

5. Farmers:

   • Farmers and other agricultural businesses may need an EIN.

6. Government Agencies:

   • Government entities and agencies may require an EIN for certain purposes.

7. Individuals:

   • In some cases, individuals may need an EIN. For example, if you operate as a household employer (e.g., hiring domestic help like a nanny or housekeeper), you may need an EIN for tax reporting purposes.

It’s important to note that not all businesses or entities need an EIN. Sole proprietors without employees, for instance, may choose to use their Social Security Number for tax purposes instead of obtaining an EIN. However, many entities find it beneficial to have an EIN for separating personal and business finances, as well as for meeting various legal and financial requirements.

In general, an Employer Identification Number (EIN) is intended to be a permanent and unique identifier for a specific business or entity. However, there are certain situations where you might need to update or apply for a new EIN. Here are some common scenarios:

1. Change in Business Structure:

   • If the legal structure of your business changes (e.g., from a sole proprietorship to an LLC or from a partnership to a corporation), you may need a new EIN.

2. Bankruptcy:

   • In the case of bankruptcy, you might need a new EIN for the reorganized business entity.

3. Change in Ownership:

   • If there is a significant change in ownership, such as the majority of ownership interests being sold or transferred, a new EIN may be required.

4. Merger or Acquisition:

   • If your business merges with or is acquired by another business, the resulting entity may need a new EIN.

5. Change in Tax Status:

   • Certain changes in tax status, such as converting from a for-profit to a nonprofit entity, might necessitate a new EIN.

6. Administrative Reasons:

   • While rare, there could be administrative reasons for changing an EIN. For example, if the IRS determines that there was an error in the original EIN application.

It’s important to note that for most businesses, routine changes like a change in business name or address do not require a new EIN. In such cases, you can update your information with the IRS using the existing EIN. Always consult with the IRS or a tax professional to determine whether a new EIN is necessary based on your specific circumstances.

You should apply for an Employer Identification Number (EIN) when:

1. Starting a New Business:

   • If you’re starting a new business, it’s advisable to apply for an EIN. This is especially important if your business is a corporation, partnership, LLC, or if you have employees.

2. Hiring Employees:

   • If your business plans to hire employees, you will need an EIN for payroll tax purposes and reporting to the IRS.

3. Opening a Business Bank Account:

   • Most banks require an EIN to open a business bank account. It helps separate personal and business finances.

4. Filing Tax Returns:

   • If your business is required to file any federal tax returns, such as income, employment, or excise tax returns, you’ll need an EIN.

5. Operating as a Corporation or Partnership:

   • Businesses structured as corporations or partnerships are required to have an EIN for tax reporting purposes.

6. Changing Business Structure:

   • If there is a change in the legal structure of your business (e.g., from a sole proprietorship to an LLC or from a partnership to a corporation), you may need to apply for a new EIN.

7. Establishing a Trust or Estate:

   • Trusts and estates often require an EIN for tax reporting purposes.

8. Applying for Business Licenses:

   • Some local jurisdictions may require an EIN when applying for business licenses.

It’s generally a good practice to apply for an EIN early in the process of setting up your business, even if you don’t immediately anticipate hiring employees or filing certain tax returns. This ensures that you have the necessary identification in place as your business grows and evolves. You can apply for an EIN online through the IRS website or by mail, fax, or phone. The application process is free of charge.

No, an Employer Identification Number (EIN) does not expire. Once the Internal Revenue Service (IRS) assigns an EIN to a business or entity, it is intended to be a permanent and unique identifier for that specific organization. Unlike certain documents or licenses that may have expiration dates, an EIN remains valid as long as the business or entity continues to operate and fulfill its tax obligations.

However, there are situations where you might need to update the information associated with your EIN, such as changes in business structure, ownership, or contact information. In such cases, it’s important to inform the IRS of these changes to ensure accurate and up-to-date records.

While the EIN itself doesn’t expire, it’s crucial to keep the IRS informed of any changes to avoid potential issues with tax filings, communications, or other administrative matters. If you have questions or need to update your EIN information, you can contact the IRS or consult with a tax professional for guidance.