Whether you’re establishing a corporation, partnership, or sole proprietorship with employees, an Employer Identification Number (EIN) is necessary; it allows you to perform various actions, from opening a business bank account to filing taxes. But how long does it take to acquire an EIN?

Below we’ll cover the timeline for getting an EIN, including any potential delays, as well as how to navigate the application process.

What’s in this article?

• What is an EIN and why do you need one?
  
• How to apply for an EIN
  
• How long does it typically take to get an EIN?
  
• What can delay the EIN application process?
  
• How to get an EIN if you’re not a US citizen
  

What is an EIN and why do you need one?

An EIN is a nine-digit number that the United States Internal Revenue Service (IRS) gives to businesses in the US. It functions like a Social Security number (SSN) for the business and allows the IRS to track the business for tax purposes.

Business owners need EINs to file business taxes, hire employees, and open business bank accounts. Anyone forming a corporation or partnership is required to get an EIN. Sole proprietors or limited liability companies (LLCs) only need EINs if they hire employees.

How to apply for an EIN

There are a few different ways you can apply for an EIN, and each comes with its own processing timeline.

Online

Applying online is the quickest, most straightforward way to get your EIN. If you apply directly through the IRS website, you receive your EIN immediately after submitting the application. To use the online system, your principal business or legal residence must be located in the US or its territories. You can only apply Monday–Friday, 7:00 a.m.–10:00 p.m. ET, and you must complete the application in one session, as the system times out after 15 minutes of inactivity. Afterward, you need to print or save your EIN confirmation letter immediately; it won’t be available to download later.

Mail

You can also fill out Form SS-4 and mail it to the IRS to get an EIN. This process usually takes about four weeks, but it could be longer depending on how busy the IRS is. If your business is based outside the US or if you’re working with a legal representative, mailing might be your best option. The IRS mailing address varies based on your business’s location, so double-check the instructions on the form to ensure it’s going to the right place.

Fax

Faxing Form SS-4 takes longer than applying online for an EIN but shorter than applying by mail. You’ll often receive your EIN via fax within four business days. To apply by fax, simply fill out the form and fax it to the IRS. As with mail, the fax number you use depends on your business’s location. Faxing is ideal if you don’t qualify for the online method but can’t wait the several weeks mailing takes.

How long does it typically take to get an EIN?

The time it takes to get an EIN depends on how you apply:

• Online: Immediately after submitting the application through the IRS website

• Fax: About four business days

• Mail: About four weeks

If you’re in a hurry, applying online is the best option. However, to do so your legal residence or principal business must be in the US or its territories.

What can delay the EIN application process?

Several factors can delay the process of getting an EIN. Here are the most common.

• Incorrect information: Submitting an application with incomplete or incorrect details, such as a misspelled business name or the wrong SSN, can slow things down. In such cases, the IRS might need to clarify details or request additional information from you before issuing the EIN.

• Technical issues: If you’re applying online, system outages or errors on the IRS website can occasionally cause delays.

• Mail processing time: If you apply by mail, delays can happen due to the volume of applications the IRS processes, especially during peak tax season. Applying for an EIN by mail is already the slowest method, but holidays or IRS backlogs can stretch the wait time beyond the typical four weeks.

• International applications: For businesses outside the US that apply by mail, it can take longer for applications to reach the IRS office due to post office delays.

How to get an EIN if you’re not a US citizen

If you’re not a US citizen but need an EIN for your business, the process is still fairly straightforward. Because you cannot apply online, you’ll need to fill out Form SS-4 and provide information on your business structure and location. The IRS does not require you to have an SSN or Individual Taxpayer Identification Number (ITIN) to apply for an EIN, so you can leave that section of the form blank. Here’s what to do next.

• Apply by phone: Non-US citizens can apply for an EIN by calling the IRS directly at +1 267-941-1099. This is not a toll-free number, so international call rates might apply. The IRS takes calls Monday–Friday, 6:00 a.m.–11:00 p.m. ET. The person calling will need to answer questions about Form SS-4, and they must be designated as an authorized person to receive the EIN through the Third-Party Designee section of the form. The IRS will usually assign an EIN during the call; the authorized person should write it down on the top right corner of the form, then sign and date it to keep for their company’s records.

• Apply by mail or fax: Mail or fax Form SS-4 to the IRS. While this method takes longer than applying by phone, it’s a viable option if you prefer handling things in writing. Visit the IRS website for the respective information.

17. Consider business loans

Using business loans as a part of your financial strategy can be a powerful step to expedite your business growth. Here’s how to approach this step:

• Determine your need for a loan: Before jumping into the loan application process, assess whether you have a genuine need for a loan. Maybe you need funds for expanding your operations, buying equipment, increasing inventory, hiring staff, or smoothing out cash flow. Getting clear about your business’s financial needs can help you make a more informed decision about applying for a loan.

• Research different types of loans: There are different types of loans available for businesses, from traditional bank loans and Small Business Administration (SBA) loans to alternative online loans and lines of credit. Each type comes with its own terms, interest rates, and requirements. The right choice for you will depend on your specific needs, financial situation, and the stage of your business.

• Consider eligibility requirements: Lenders have varying criteria for approving loans. These can include factors such as your credit score, business revenue, the profitability of your business, and how long you’ve been in operation. Before applying for a loan, carefully check these criteria to see if you qualify.

• Prepare your loan application: Once you’ve chosen a type of loan and confirmed that you meet the lender’s criteria, the next step is to prepare your loan application. This involves compiling financial documents such as your business plan, financial statements, tax returns, and details of your collateral. You may also need to present a plan outlining how you intend to use the loan and how you will repay it.

• Compare loan offers: If your loan application is approved, you may receive offers from different lenders. Consider each offer’s terms carefully, including the interest rate, loan amount, loan term, and any additional fees. Be sure you understand the total cost of the loan and how the repayment terms align with your business’s financial projections.

Taking on debt is a serious commitment that demands careful planning and consideration. For additional guidance throughout the process, consult with a financial advisor or mentor.

There’s no easy shortcut to starting a business. Cutting corners or skipping steps in the early days can create unnecessary friction, confusion, or even legal liability down the road. But while much of the work that goes into starting a new business might seem tedious, it’s not overly complicated. If you take a thoughtful and methodical approach to this process, and address each step in the correct order, you’ll build a foundation that can support all the goals and dreams you have for your business—exactly what motivated you to begin this journey in the first place.