How long will it take to get an EIN (Employer Identification Number)?
If you’re ready to get started with your new business venture, obtaining an Employer Identification Number (EIN) is one of the first and most crucial steps. This identification number, also known as a Federal Tax ID, allows your business to legally operate, file taxes, open a business bank account, and even hire employees. When it comes to getting an EIN, the process can be relatively quick or take several weeks depending on a few important factors, including whether you hold a U.S. Social Security Number (SSN) and the method you use to apply.
With a U.S. SSN:
To begin, if you do have a U.S. Social Security Number, you’re in a favorable position for a quicker turnaround time. For example, if you apply online, you can usually expect to receive your EIN almost immediately – often on the same day. This rapid process is possible because the IRS’s online application system is designed to validate U.S. SSNs in real-time, eliminating delays.
However, if you prefer not to use the online method, there are alternative ways to apply, such as fax or mail, though they do take longer. If you apply by fax, it can take about 1-2 business days. By mail, the wait time usually extends to around 4-6 weeks. Therefore, online application remains the fastest choice.
Without a U.S. SSN:
On the other hand, if you don’t have a U.S. SSN, the process is a bit more involved and can take several weeks longer. Since the IRS requires non-U.S. residents and foreign entities to apply by fax or mail, you’re looking at an expected processing time of 4-6 weeks for faxed applications, while mail-in applications may take up to 8 weeks. The added time accounts for verification procedures, as the IRS needs to confirm the legitimacy of your business without an SSN.
Additional factors that can impact EIN processing time:
- Application Method: Generally, the way you choose to submit your application has a major influence on how quickly you’ll receive your EIN. For instance, online applications are processed almost instantly, while fax and mail methods inherently take longer.
- Time of Year: Processing times can also vary depending on the time of year. Especially around tax season, when the IRS handles a higher volume of submissions, processing may slow down. During these peak periods, both online and offline applications may experience delays, so it’s beneficial to apply during off-peak times if possible.
- Accuracy of Information: Errors on your application can also lead to setbacks. Simple mistakes—such as incorrect business names, missing fields, or incomplete information—can cause the IRS to return your application, meaning you’ll have to correct it and resubmit. To avoid this, it’s best to double-check all information carefully before submitting.
- International Business Structure: For non-U.S. entities, the complexity of the business structure may also impact processing time, as the IRS may require additional verification.
Do you have any other questions?
So, if you’re applying for an Employer Identification Number (EIN) in the U.S., using the IRS’s online service allows you to receive it instantly, which is ideal for quick processing. For those opting to mail in their application, the process typically takes four to six weeks, depending on the details provided and current processing times. Ensuring all information is accurate helps avoid delays.
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