When you’re ready to start a business in the United States, one of the most important steps is applying for your Employer Identification Number (EIN). Whether you’re forming an LLC, corporation, or just opening a business bank account, your EIN is the key to legally and professionally launching your company.
In this blog post, we’ll walk you through how to apply for an EIN from the IRS, explain the uses of EIN in starting a business, and show you how Smart Filing makes the EIN application process fast and stress-free.
What Is an EIN?
An EIN, also known as a Federal Employer Identification Number, is a 9-digit number assigned by the Internal Revenue Service (IRS). It functions like a Social Security number (SSN) but for your business.
You use this number when filing taxes, opening a business bank account, hiring employees, and more. It’s a requirement for most types of business entities and plays a central role in making your business official and legally compliant.
IRS Apply for EIN: Why It Matters for New Businesses
If you’re starting a business, the IRS requires you to apply for an EIN under certain conditions. But even if it’s not legally required for your business type, having an EIN offers major advantages.
Here are common scenarios where you must or should apply for an EIN:
- You’re forming an LLC, partnership, or corporation
- You have or plan to hire employees
- You want to open a business bank account
- You need to apply for local or state business licenses
- You plan to establish credit under your business name
- You need to file federal taxes separately from your personal taxes
💡 Pro Tip: Many business owners use services like Smart Filing to avoid common IRS errors and get their EIN quickly and correctly.
How to Apply for EIN from the IRS
The IRS offers different methods to obtain your EIN: online, by mail, fax, or phone (for international applicants). But the fastest and easiest way is online. Here’s a step-by-step overview:
Step 1: Determine Your Eligibility
You must have a valid Taxpayer Identification Number (such as an SSN or ITIN), and your business must be located in the United States or U.S. territories.
Step 2: Choose How to Apply
- Online: Available at IRS.gov during business hours.
- By Mail or Fax: Submit Form SS-4.
- Through a Third Party: Use a filing service like Smart Filing for guided support and faster processing.
Step 3: Complete the EIN Application
You’ll need to provide:
- Business name and structure (LLC, sole proprietorship, etc.)
- Responsible party information
- Business purpose and address
- Reason for applying (e.g., starting a business, hiring employees)
Step 4: Receive Your EIN
Online applications get an EIN instantly. Mail or fax submissions can take several days or weeks. Smart Filing expedites this process and provides you with official EIN documentation.
Uses of EIN in Starting a Business
An EIN isn’t just a tax number. It unlocks the operational side of your business and is critical for growth, credibility, and legal compliance. Below are the top uses of EIN in starting a business:
1. Open a Business Bank Account
Banks require an EIN to open a business checking account. This allows you to separate personal and business finances, which is essential for accurate bookkeeping and legal protection.
2. Hire Employees Legally
Hiring your first employee? You’ll need an EIN to report wages to the IRS, file employment tax forms, and comply with labor laws.
3. File Business Taxes
The EIN is required to file federal tax returns for your business. It also allows you to make estimated tax payments and report payroll taxes if you have employees.
4. Apply for Licenses and Permits
Most business licenses and permits at the state and local levels require you to have an EIN to operate legally.
5. Establish Business Credit
Want to apply for a business loan, credit card, or vendor account? You’ll need an EIN to start building your business credit profile.
6. Add Legitimacy to Your Business
Using your EIN instead of your personal SSN adds professionalism and credibility when dealing with banks, suppliers, or government agencies.
Who Needs an EIN?
Here’s a quick checklist to know if you need to apply for EIN from the IRS:
✅ Forming an LLC or corporation
✅ Starting a partnership
✅ Hiring employees
✅ Selling products or services requiring a license
✅ Filing excise, employment, or alcohol/tobacco/firearm tax returns
✅ Creating a business retirement plan
✅ Wanting to open a business bank account
Even sole proprietors and single-member LLCs benefit from an EIN to protect personal identity and operate more professionally.
IRS EIN Application Mistakes to Avoid
Many business owners make avoidable mistakes when applying for an EIN themselves. These include:
- Choosing the wrong entity type
- Providing inconsistent business details
- Forgetting to download the EIN confirmation letter
- Applying multiple times and getting rejected
With Smart Filing, you don’t have to worry about paperwork errors. Our EIN filing experts guide you every step of the way.
Why Use Smart Filing to Get Your EIN?
Applying directly through the IRS can be confusing, especially if you’re unfamiliar with tax terminology or your business structure. Smart Filing streamlines the entire EIN process by:
✅ Handling all paperwork accurately
✅ Filing directly with the IRS on your behalf
✅ Avoiding rejections and delays
✅ Providing your EIN confirmation letter securely
✅ Offering affordable EIN + LLC packages
🚀 Ready to get started?
Apply now with Smart Filing and get your EIN fast:
👉 https://smartfiling.com/service/tax-id-ein
Final Thoughts: Don’t Delay Your EIN Application
Getting your EIN is one of the first steps in starting a legal and successful business. It allows you to pay taxes, hire employees, get licensed, and operate with professionalism. Applying through the IRS can be tricky, but you don’t have to do it alone.
Let Smart Filing help you apply for your EIN the right way, the first time. Our expert-guided process ensures your business starts strong, stays compliant, and grows confidently.
✅ Apply for Your EIN Today
Smart Filing makes it easy. No IRS confusion. No paperwork headaches. Just fast, accurate EIN filing.
👉 Start your EIN application now