{"id":26,"date":"2013-06-03T22:38:59","date_gmt":"2013-06-03T22:38:59","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?page_id=26"},"modified":"2018-11-13T11:17:36","modified_gmt":"2018-11-13T19:17:36","slug":"applying-for-a-new-ein","status":"publish","type":"page","link":"https:\/\/evergreensmallbusiness.com\/small-business-faq\/applying-for-a-new-ein\/","title":{"rendered":"Step by Step: How to Apply for an EIN"},"content":{"rendered":"

\"Picture<\/a>The easiest way to get an EIN number is through the interview-style, online EIN application.<\/p>\n

Caution:<\/strong> The IRS takes up to two weeks to make your new EIN part of its permanent records. Until your EIN gets added to the permanent records, you can\u2019t file an electronic return, make an electronic payment, or pass an IRS Taxpayer Identification Number matching program. Accordingly, if you do need an EIN, apply as soon as possible!<\/p>\n

The online EIN application is not available 24 hours a day. At the time I\u2019m writing this (summer of 2017), the IRS makes its online EIN application available\u00a0Monday through Friday 7:00 a.m. to 10:00 p.m. Eastern time.<\/p>\n

Fortunately, you do not need special software to complete the online EIN application. All you need to have is Internet access and a current Internet browser.<\/p>\n

Thankfully, you also do not need special computer skills to complete the online EIN application. The online EIN application asks questions and you simply provide the answers by filling in the blanks and checking boxes and buttons.<\/p>\n

Here are the precise steps for completing the online EIN application:<\/p>\n

1. Go to the IRS website.<\/h3>\n

Go to the IRS online EIN application web page<\/a> to begin.\u00a0Scroll to the bottom of the page and click on the \u201cBegin Application\u201d button.<\/p>\n

2. Identify the legal and tax structure of your business entity.<\/h3>\n

This step is very important because each type of legal and tax structure has differing rules and regulations, as well as tax reporting requirements. If your business is set up as an LLC, click the \u201cLimited Liability Company (LLC)\u201d button. If your business is a corporation, click the \u201cCorporations\u201d button.<\/p>\n

If you click the \u201cCorporations\u201d button, the application will say\u00a0\u201cYou have chosen Corporations\u201d and will ask what type of corporation you will be. If you intend to be considered an S corporation for tax purposes, click the \u201cS Corporation\u201d button. If you intend to be taxed as a regular corporation, click the \u201cCorporations\u201d button. For more on the difference between these two statuses, read this FAQ article<\/a>.<\/p>\n

Note:<\/strong> The IRS web site supplies definitions for most of the terms used in the online EIN application. If a word or phrase appears blue and underlined, you can click on it to get a definition in a new window. Clicking on these definitions will not halt the progress of your application.<\/p>\n

After you indicate what type of legal and tax structure you\u2019ve chosen for the new entity, click Continue. The online EIN application then takes you to a page that explains your choice.<\/p>\n

Go to the bottom of this page and click on the \u201cContinue\u201d button.<\/p>\n

3. If your business is an LLC, provide information about the members.<\/h3>\n

You\u2019ll need to specify the number of LLC members, as well as the state where the business is physically located, if your business is an LLC.<\/p>\n

Note:<\/strong> Different states and even different LLC operating agreements may vary in the names they use to describe LLC owners. However, for consistency purposes, the online EIN application refers to LLC owners as \u201cmembers.\u201d<\/p>\n

Type the number of members into the field provided. Then use the drop-down box to select the appropriate state.<\/p>\n

Click on the \u201cContinue\u201d button.<\/p>\n

If you will only have one member in your LLC, you will be brought to a page that says you need to confirm your selection. This page will explain that you will be considered a Single-Member LLC.<\/p>\n

As such, you will be classified initially<\/em> as a disregarded entity for federal tax return purposes. In other words, you will report your LLC income and deductions using your 1040 tax return. For example, if you set up an LLC to operate an active trade or business, you will report your LLC\u2019s income and deductions on the 1040 Schedule C form. If you set up an LLC to hold investment real estate, you report your LLC\u2019s income and deductions on the 1040 Schedule E form.<\/p>\n

Go to the bottom of this page and click the \u201cContinue\u201d button.<\/p>\n

If you have more than one member in your LLC, you will be taken to a page that says your LLC will be considered a Multi-Member LLC and will be classified initially<\/em> as a partnership for IRS tax purposes. Click the \u201cPartnership\u201d button. You will be taken to another page that explains what a partnership is and that asks you to confirm your selection.<\/p>\n

Click on the \u201cContinue\u201d button.<\/p>\n

4. State why you are requesting an EIN.<\/h3>\n

When prompted by the online EIN application, explain why you are requesting an EIN. Your choices are:<\/p>\n