How-long-does-it-take-to-get-an-EIN

How Long Does It Takes to Get an EIN?

By HSBU

Obtaining an Employer Identification Number (EIN) is a crucial step for any business operating in the United States. This unique nine-digit number, assigned by the Internal Revenue Service (IRS), is used for various purposes, including tax filings, opening bank accounts, and hiring employees. But how long does it actually take to get an EIN? This comprehensive guide explores the factors that influence the processing time and provides practical tips to expedite the process.

Understanding How Long Does It Takes to Get an EIN

Before diving into the factors affecting the processing time, it’s important to understand what an EIN is and why it’s necessary.

What is an EIN?

An Employer Identification Number (EIN) is a unique identifier assigned by the IRS to businesses for tax purposes. It functions similarly to a Social Security Number for individuals but is used exclusively for business activities.

Why You Need an EIN

An EIN is required for:

  • Filing business tax returns
  • Opening a business bank account
  • Hiring employees
  • Applying for business licenses and permits
  • Establishing business credit

Factors Influencing the Time to Get an EIN

Several factors determine how long it takes to obtain an EIN. These include the method used to apply, processing times, the time of application, accuracy and errors in the application, and the use of third-party services.

Method Used to Apply

The method you choose to apply for an EIN significantly impacts the processing time. There are four primary methods:

1. Online Application

The online application is the fastest method to obtain an EIN. It is available to businesses located in the United States and its territories.

  • Processing Time: Immediate (upon completion of the application)
  • Availability: Monday to Friday, 7 a.m. to 10 p.m. Eastern Time

2. Mail Application

Applying by mail is slower but can be used by international applicants and those who prefer traditional methods.

  • Processing Time: 4 to 6 weeks
  • Process: Complete Form SS-4 and mail it to the IRS

3. Fax Application

Applying by fax is faster than mail but slower than online.

  • Processing Time: 4 business days
  • Process: Complete Form SS-4 and fax it to the IRS

4. Phone Application

International applicants can apply by phone.

  • Processing Time: Immediate (upon completion of the call)
  • Availability: Monday to Friday, 6 a.m. to 11 p.m. Eastern Time

Processing Time

The processing time varies based on the application method and the IRS’s current workload. While online and phone applications are processed immediately, mail and fax applications can take several weeks.

Time of Applying

The time of year you apply can also affect how quickly you receive your EIN. Peak periods, such as tax season (January to April), can result in longer processing times due to higher demand.

Accuracy and Errors

Ensuring that your application is accurate and complete is critical. Errors or incomplete information can cause delays, as the IRS may need to contact you for corrections.

Using Third-Party Services

Third-party services can help expedite the process by ensuring that your application is correctly completed and submitted. These services often charge a fee but can save time and reduce the risk of errors.

Need help with your EIN application? Contact us for expert assistance and avoid unnecessary delays!

Detailed Steps for Applying for an EIN

Understanding the detailed steps for each application method can help you choose the best option for your business needs.

Online Application

  1. Visit the IRS Website: Go to the IRS EIN application page.
  2. Choose Your Entity Type: Select the type of business entity you are forming.
  3. Provide Business Information: Enter details such as the business name, address, and responsible party.
  4. Submit the Application: Review the information and submit your application.
  5. Receive Your EIN: Your EIN will be issued immediately upon completion.

Mail Application

  1. Download Form SS-4: Obtain Form SS-4 from the IRS website.
  2. Complete the Form: Fill out all required fields accurately.
  3. Mail the Form: Send the completed form to the appropriate IRS address.
  4. Wait for Processing: Allow 4 to 6 weeks for processing.
  5. Receive Your EIN: Your EIN will be mailed to you upon approval.

Fax Application

  1. Download Form SS-4: Obtain Form SS-4 from the IRS website.
  2. Complete the Form: Fill out all required fields accurately.
  3. Fax the Form: Send the completed form to the appropriate IRS fax number.
  4. Wait for Processing: Allow 4 business days for processing.
  5. Receive Your EIN: Your EIN will be faxed back to you upon approval.

Phone Application

  1. Gather Information: Have all necessary information ready (business name, address, and responsible party).
  2. Call the IRS: Dial the international EIN phone number.
  3. Provide Business Information: Answer the representative’s questions.
  4. Receive Your EIN: Your EIN will be issued immediately upon completion of the call.

Pro Tip: Double-check all information before submitting your application to avoid delays caused by errors.

FAQs

1. How long does it take to get an EIN online?

You can receive your EIN immediately when applying online through the IRS website.

2. Can I apply for an EIN on behalf of someone else?

Yes, you can apply for an EIN on behalf of another person or business, but you must have their authorization to do so.

3. What if I make a mistake on my EIN application?

If you make a mistake on your application, you will need to contact the IRS to correct the information. This may cause delays in receiving your EIN.

4. Do I need an EIN if I don’t have employees?

Yes, you may still need an EIN for other business activities, such as opening a bank account, applying for business licenses, and filing taxes.

By understanding the factors that influence the time it takes to get an EIN and following the best practices outlined in this guide, you can ensure a smooth and efficient application process. Whether you choose to apply online, by mail, by fax, or by phone, being prepared and accurate will help you get your EIN as quickly as possible.