Obtaining an EIN: a practical guide for your clients

If you’re a tax professional, sooner or later you’ll likely help a business or nonprofit get an employer identification number (EIN). This number is a requirement when reporting payroll, paying certain taxes, operating as a partnership or corporation and more. The IRS has a clean, straightforward process for acquiring these identification numbers.  

In Aug. 2025, the IRS modernized the online EIN application. While the interface is simpler and faster, functionality remains the same; federal, state and local government entities may still apply online. Update your bookmarks to the IRS Apply for an employer identification number (EIN) page. 

Here’s what you need to know to guide your clients through the process smoothly. 

The basics: Purposes and uses of EINs 

An employer identification number, or EIN, is like a Social Security number for a business or organization. It’s the identifier businesses use when dealing with the IRS for tax matters: filing returns, paying certain taxes, reporting payroll, etc.  

Clients will generally need an EIN if they are forming a legal business entity such as an LLC, corporation, partnership or nonprofit. If they are hiring employees, filing for a trust or estate, paying excise taxes or registering for state-level sales tax, they will also need an EIN. If your client is starting a business, you’ll want to form the entity first (if their state requires) before applying for the EIN. If they don’t follow this order their EIN application might be delayed. 

EIN online application requirements 

A few key things must be in place to apply online for an EIN via the IRS tool:  

• The business’s principal place of operations is in the U.S. or U.S. territories. 
• A responsible party with a Social Security number (SSN) or individual taxpayer identification number (ITIN) can sign the application. 
• If someone else applies on your behalf, you’ll need written authorization for a third-party designee. 
• Form the entity first, if your state requires, then apply for the EIN to avoid delays. 
• If these conditions aren’t met, apply by fax or mail; international applicants can apply by phone. 

The process of applying for an EIN 

Applying online is the quickest route. When the client signs onto the IRS Get an EIN page, the application must be completed in one sitting. Inactivity for more than 15 minutes causes the session to expire, and you’ll have to restart. Be ready with the required information: business structure or entity type, name, address and the responsible party’s SSN or ITIN.  

The authorization should be completed if a third party is responsible for the organization. Once submitted and approved, the EIN is issued online immediately. Make sure to print the confirmation letter and save it for your records. The online tool is free and is available Monday through Friday from 7 a.m. to 10 p.m. Eastern time. Keep in mind that a responsible party can apply for only one EIN per day. 

If your client can’t use the online tool, maybe because they’re outside the U.S. or don’t have the required responsible party info, the IRS also accepts EIN applications by phone (international only), by fax or by mail. For this, clients may use Form SS-4, Application for Employer Identification Number (EIN). Just be aware these alternate methods usually take longer than the online process. Ensure the paperwork is correct before submitting to avoid unnecessary delays. 

After receiving your EIN 

As soon as the EIN is issued, your client must use it when filing required tax returns or information returns. That could include payroll tax returns, excise taxes, and partnership or corporate business tax returns. 

If the business changes its structure, ownership or principal place of business, or if the responsible party changes, it could trigger the need for a new EIN. Helping clients understand when a new number is required saves headaches down the road. 

Tax pros can assist their EIN clients 

This is where your guidance makes a big difference. Prep in advance by making sure the client has all documentation ready, their entity is formed, and the responsible party has a tax ID and a current address. Then, walk them through the tool.  

Please encourage them to save the EIN confirmation. Clients should print or download it since they’ll need it later for banks, vendors and payroll setups. Remember that for new businesses, the EIN acquisition step comes right after entity formation and before opening bank accounts, hiring or entering into contracts. 

Example: 

Your client is forming Green Leaf LLC in Colorado and plans to hire one employee. They form the LLC with the state, then with your assistance and guidance, use the IRS online application to obtain the EIN. The responsible party enters their SSN, authorizes their payroll provider as a third-party designee and receives the EIN immediately. Because the entity was formed first, the EIN matches the state records and payroll setup isn’t delayed. 

Final thoughts on EIN acquisition 

An EIN is an essential requirement for many business and organizational activities. The updated IRS online tool makes getting one fast and free if your client is ready with the right information and can meet the eligibility requirements.  

As a tax professional, you can make the process even more streamlined by helping clients prepare for, apply and save their EIN confirmation. When done right, getting an EIN online takes just minutes. Check out this IRS page for more guidance on whether your clients may need an EIN.