Form SS-4 (Application for Employer Identification Number) must be completed to receive your EIN (Employer Identification Number). EINs are unique 9-digit numbers assigned to businesses like LLCs, corporations, partnerships, and sole proprietorships by the IRS. An EIN helps the IRS keep track of your payments for tax obligations. EINs are also needed for tax reporting, compliance, and employment taxes. LLCs and other business types are required by law to have and keep track of an EIN.
As an example, if an EIN is needed for an LLC if it’s the small online business store is going to open a business bank account and/or if it’s going to need to file employment taxes and hire a staff.
Who Needs to File Form SS-4?
If your business or entity:
- Employs workers
- Is structured as a corporation, partnership, or LLC
- Pays excise, employment, or other taxes related to alcohol, tobacco, or firearms
- Needs to open a business bank account
- Submits some forms of information reporting (such as Form 5472, which pertains to foreign-owned entities)
If a single-member LLC has no employees, but either their bank requires an EIN, or they choose corporate tax treatment, an EIN is required.
How Do You Apply for an EIN Using Form SS-4?
Applying for an EIN can be done online, by fax, mail, or telephone (for international applicants). Follow these steps to ensure a smooth process.
Step 1: Determine Your Application Method
- Online: Available to U.S. and U.S. territories residents. You receive the EIN immediately after submission.
- Fax: Send a completed Form SS-4 to the IRS fax number listed for your location; receive EIN within approximately four business days.
- Mail: Mail your Form SS-4 to the IRS; processing typically takes four weeks.
- Telephone (International Applicants): Call 267-941-1099 to obtain an EIN.
Step 2: Complete Key Information on Form SS-4
Below are critical fields to complete:
- Line 1: Legal name of the entity. Example: “Bright Star LLC.”
- Line 2: Trade name (DBA) if different. Example: “Bright Star Video Services.”
- Line 7a/7b: Responsible party’s name and taxpayer ID (SSN, ITIN, or EIN).
- Line 8: LLC information (number of members, default tax classification).
- Line 9a: Type of entity (sole proprietorship, corporation, partnership, trust, etc.).
- Line 10: Reason for applying (new business, hired employees, banking, etc.).
- Line 11: Date the business started or was acquired.
- Line 12: Closing month of your accounting year.
- Line 13: Expected number of employees in the next 12 months.
- Line 14: Option to file Form 944 (annual employment tax) instead of Form 941 quarterly.
- Line 16–17: Principal business activity and description. Example: “Video production and editing services.”
- Line 18: Previous EIN issued? Yes/No.
- Third-Party Designee: Optional authorization for a tax professional to receive EIN and answer IRS questions.
Step 3: Submit Form SS-4
- Online: Submit via IRS EIN Online Application.
- Fax or Mail: Use the addresses/fax numbers listed in the IRS instructions.
- Telephone (International): Only the authorized individual may call the IRS to obtain an EIN.
Filing Deadlines for Form SS-4
Form SS-4 does not have a fixed filing deadline. However, it is recommended to apply before you need to:
- File your first tax return
- Hire employees
- Open a business bank account
Applying early avoids delays in tax reporting and banking operations.
Penalties for Non-Compliance
Failing to obtain an EIN when required can lead to:
- Delays in filing tax returns or paying employment taxes
- Inability to open a business bank account
- Potential IRS penalties for non-compliance
Even if no immediate penalty is assessed, business operations may be hindered without an EIN.
Common Mistakes to Avoid When Filing Form SS-4
- Using a trade name instead of the legal business name inconsistently
- Reusing an EIN from a previous business entity
- Failing to list the responsible party correctly
- Submitting multiple applications using different methods
- Forgetting to authorize a third-party designee when applicable
Form SS-4 vs Other IRS Forms
| Form | Purpose | When Required |
| SS-4 | Apply for EIN | Before hiring employees, opening a bank account, or starting business tax reporting |
| 8832 | Entity classification election | If changing default LLC or foreign entity tax status |
| 2553 | S-Corporation election | If electing S-Corp tax treatment |
Where to Find Official IRS Resources
Dimov Tax is Ready to Provide Expert Assistance
If you’re unsure how to complete Form SS-4 — or which tax classification to choose — Dimov Tax can present guidance through the process and support you in securing an EIN quickly. Contact us today for professional aid.
FAQs
Can I apply for an EIN if I am a sole proprietor with no employees?
Yes, you can. Even if you are a sole proprietor without employees, an EIN can be useful or necessary in several situations. For instance, many banks require an EIN to open a business bank account. Additionally, if you want to separate your personal and business finances, having an EIN can help maintain that distinction. An EIN is also required if you plan to hire employees in the future, operate as a partnership, or elect certain tax treatments such as filing as an S-Corporation.
How long does it take to get an EIN?
The processing time depends on the method you choose to apply:
- Online: You receive your EIN immediately after completing the application. This is the fastest method for U.S.-based applicants.
- Fax: If you fax a completed Form SS-4 to the IRS, you typically receive your EIN within about four business days. Ensure you include a return fax number for prompt delivery.
- Mail: If you submit Form SS-4 by mail, processing can take up to four weeks. This method is slower but may be necessary if you do not have access to online or fax submission.
- Telephone (International Applicants): International applicants may call the IRS directly to receive their EIN, and the IRS will provide it during the call.
Planning ahead is important, especially if you need an EIN for time-sensitive matters like opening a bank account or filing a tax return.
Can a third-party apply for my EIN on my behalf?
Yes. You can authorize a third party, such as a CPA, attorney, or other tax professional, to apply for your EIN on your behalf. To do this, you must complete the “Third-Party Designee” section on Form SS-4, providing the designee’s name, phone number, and permission to receive the EIN and answer questions about the application. This is especially useful if you are unavailable to handle the application yourself or if you want a professional to ensure accuracy.