How to Get an EIN (you can do it, it's not that hard)

Introduction

Need an EIN for your S corp? Don’t sweat it—it’s straightforward, free, and you can handle it online in no time. An Employer Identification Number (EIN) is like a Social Security number for your business, and getting one is one of the first steps to making your S corp official. Whether you’re setting up a bank account or filing taxes, this little number has you covered. Here at ScorpStrategies.com, we’re breaking it down for you with a simple guide to the IRS’s online application process. (Heads up: this is a general overview, not tax advice. For your specific situation, chat with your tax advisor.) Ready to see how easy it can be? Let’s dive in!

What’s an EIN and Why Does Your S Corp Need It?

The EIN (Employer Identification Number) is a federal tax ID number assigned by the IRS to identify your business—think of it as your S corp’s official badge. For S corporation owners, it’s a must-have. You’ll need it to file your federal taxes (like Form 1120S), open a business bank account, or even hire employees if you’re growing your team. It’s not just paperwork—it’s a key piece of keeping your business legit and running smoothly. Getting one is a quick step that sets you up for everything else.

Who Can Use the IRS Online Tool?

Before you jump in, let’s make sure you can use the IRS’s online application. Most S corp owners qualify, so you’re probably good to go. Here’s the basic rundown: your business needs to be located in the US or one of its territories, and the person applying—usually you—must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). That’s it! If your S corp is based overseas or has a more complex setup, you might need to apply by mail or phone instead. Not sure where you stand? Your advisor can sort it out. For most of us, though, the online tool is the fastest, easiest way forward.

How to Apply Online: A Simple Walkthrough

Ready to get that EIN? Here’s how to do it online with the IRS—it’s easier than you think.

Step 1: Go to the IRS Website

Visit the IRS website and click "Apply for an EIN”. It’s a free service, open Monday through Friday from 7 a.m. to 10 p.m. Eastern Time. Note that each responsible party can only apply for one EIN per day, so plan accordingly if you have multiple new entities.

If your screen looks like this, you're in the right place:

IRS EIN Application

Step 2: Start the Process

Once you’re there, click to start the application. You’ll choose “Corporation” as your entity type, then select “S Corporation” from the options. It’s a quick setup—nothing tricky here, just a few clicks to tell the IRS what kind of business you’ve got.

Step 3: Enter Your Info

Next, fill in some basics: your S corp’s legal name, address, and details about the responsible party (usually you, with your SSN or ITIN). It’s simple stuff; just follow the prompts. The entire process should take you about 10 minutes.

Step 4: Get Your EIN

Hit submit, and you’ll see your EIN right away. Be sure to download the PDF confirmation right away since you may not be able to access this screen again. In a few weeks, you'll get a letter from the IRS at the address you provided on the application (IRS Notice CP 575 A). This notice will confirm your EIN and provide some other important information, such as the tax forms the IRS expects to receive from your new entity & the due dates for those forms.

This is the standard process, but if your situation’s a little different, check with your tax pro to be sure.

What’s Next After Your EIN?

Congrats—you’ve got your EIN! Now what? You’re on your way to making your S corp official, and there are a few practical steps you can take next. Use your EIN to open a business bank account—it’s critical that the corporation's finances are separate from its shareholders or related entities. If you’re planning to hire employees, you’ll need it to set up payroll. And when tax time rolls around, that EIN will be key for filing your S corp returns (your advisor can walk you through that part). Your tax advisor can help you figure out next steps, but for now, give yourself a pat on the back—you’ve handled this like a pro!

Conclusion

See? Getting an EIN online is no big deal—a few clicks, and you’re official. You can totally do this! It’s a small task that opens big doors for your S corp, from banking to taxes and beyond. Head to the IRS site and grab your EIN today—your advisor can help with anything else you need down the road. Stay tuned to ScorpStrategies.com for more tips to keep your S corp moving forward.

Note: The content presented here is for informational purposes only and is not intended to be tax advice. You should not rely solely on this information when making decisions about your business or filling out tax forms. Consult a tax advisor for information specific to your needs.