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.

How to save money when incorporating a business

While some incorporation fees are unavoidable, it’s possible to lower your business’s costs by handling as much as possible in-house and seeking professional help when necessary. Here are a few key strategies for saving money:

• DIY incorporation: If your business structure is straightforward and you’re comfortable with paperwork, filing the incorporation documents yourself can save you hundreds or even thousands of dollars in legal fees. Online resources and guides are available to help you through the process.

• Compare registered agent services: Registered agent fees vary between providers. Compare prices and services from different companies to find the best deal for your needs.

• Consider forming an LLC: Limited liability companies (LLCs) are often simpler and less expensive to form than corporations, making them a cost-effective option for small businesses.

• Choose the right location: Some locations have lower filing fees and franchise taxes than others. Research different places to see which ones have the most favorable business environment for your industry and budget. Delaware is a popular choice in the US for its business-friendly laws and low fees, for example.

• Take advantage of online legal services: Online legal services offer affordable packages that can guide you through the incorporation process and provide templates for necessary documents. Some might even have discounts and promotions for new customers. This can be less expensive than hiring an attorney.

• Negotiate professional fees: If you need to hire an attorney or accountant, don’t hesitate to negotiate their fees. Some professionals might offer discounts for startups or small businesses.

• Plan for ongoing costs: While saving on initial incorporation costs is important, make sure to factor in ongoing expenses such as annual report fees, franchise taxes, and registered agent fees.