An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit number that the IRS assigns to business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities.
Entities that May Not Apply Online: The online application process is not yet available for the following types of entities: Foreign Addresses (including Puerto Rico), Limited Liability Company (LLC) without entity types, REMICs, State and Local Governments, Federal Government/Military, Indian Tribal Government/Enterprise. Please call the toll-free Business and Specialty Tax Line at 1-800-829-4933 should you need assistance applying for an EIN. Foreign Addresses (addresses outside the continental USA, Alaska and Hawaii) call 215-516-6999.
An Employer Identification Number (EIN) is is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online . You must check with your state make sure you need a state number or charter.
You will need an EIN if you answer "Yes" to any of the following questions.
- Do you have employees?
- Do you operate your business as a corporation or 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?
- Are you involved with any of the following types of organizations?
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- Estates
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers' cooperatives
- Plan administrators
Additionally, if you provide health insurance for your employees, you may need a National Standard Employer Identifer (NSEI) for your electronic health transactions.
Do You Need a New EIN?
Generally, businesses need a new EIN when their ownership or structure has changed
Sole Proprietors
You will be required to obtain a new EIN if the following statements are true.
- You are subject to a bankruptcy proceeding.
- You incorporate.
- You take in partners and operate as a partnership.
- You purchase or inherit an existing business that you operate as a sole proprietorship.
You will not be required to obtain a new EIN if the following statements are true.
- You change the name of your business.
- You change your location and add other locations.
- You operate multiple businesses.
Corporations
You will be required to obtain a new EIN if the following statements are true.
- A corporation receives a new charter from the secretary of state.
- You are a subsidiary of a corporation using the parent's EIN or you become a subsidiary of a corporation.
- You change to a partnership or a sole proprietorship.
- A new corporation is created after a statutory merger.
You will not be required to obtain a new EIN if the following statements are true.
- You are a division of a corporation.
- The surviving corporation uses the existing EIN after a corporate merger.
- A corporation declares bankruptcy.
- The corporate name or location changes.
- A corporation chooses to be taxed as an S corporation.
- Reorganization of a corporation changes only the identity or place.
Partnerships
You will be required to obtain a new EIN if the following statements are true.
- You incorporate.
- Your partnership is taken over by one of the partners and is operated as a sole proprietorship.
- You end an old partnership and begin a new one.
- 50 percent or more of the ownership (measured by interests in capital and profits) changes hands within a 12-month period.
You will not be required to obtain a new EIN if the following statements are true.
- The partnership declares bankruptcy.
- The partnership name changes.
- You change the location of the partnership or add other locations.
Estates
You will be required to obtain a new EIN if the following statements are true.
- A trust is created with funds from the estate (not simply a continuation of the estate).
- You represent an estate that operates a business after the owner's death.
You will not be required to obtain a new EIN if the following statement is true.
- The administrator, personal representative, or executor changes his/her name or address.
Trusts
You will be required to obtain a new EIN if the following statements are true.
- One person is the grantor/maker of many trusts.
- A trust changes to an estate.
- A living or intervivos trust changes to a testamentary trust.
- A living trust terminates by distributing its property to a residual trust.
You will not be required to obtain a new EIN if the following statements are true.
- The trustee changes.
- The grantor or beneficiary changes his/her name or address.
