An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States.
For any business formed in Texas—whether a sole proprietorship, partnership, LLC, or corporation—an EIN is essential for opening bank accounts, hiring employees, filing tax returns, and applying for business licenses and permits.
Fortunately, obtaining an EIN from the IRS is free and can be done entirely online in about 15 minutes.
This comprehensive guide explains when you need an EIN, who is the responsible party, the step-by-step online application process, what to do if you are a foreign national without a Social Security number, and how to handle lost or forgotten EINs.
Does your Texas business need an EIN?
Not every business requires an EIN. The IRS mandates an EIN for businesses that meet any of the following criteria:
- The business has employees (any number, including one).
- The business operates as a corporation or partnership (including multi-member LLCs).
- The business files tax returns for employment, excise, or alcohol, tobacco, and firearms.
- The business withholds taxes on income paid to a non-resident alien.
- The business has a Keogh plan (a tax-deferred pension plan).
- The business is involved with trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives, or plan administrators [citation:3].
For a single-member LLC (SMLLC) that is treated as a disregarded entity for federal tax purposes and has no employees, the EIN is technically optional.
The owner can use their Social Security Number for tax filings. However, obtaining an EIN is still highly recommended because it allows you to open a business bank account, build business credit, and keep your personal Social Security Number off of business documents.
Many banks require an EIN to open a business account, even for sole proprietors [citation:3].
Understanding the responsible party requirement
When applying for an EIN, the IRS requires the identification of a "responsible party." The responsible party is the person who ultimately owns or controls the entity or who exercises effective control over the entity.
For a sole proprietorship, the responsible party is the sole proprietor (using their Social Security Number or Individual Taxpayer Identification Number).
For an LLC or corporation, the responsible party is typically the primary owner, principal officer, or managing member.
The responsible party must provide their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) on the EIN application.
The IRS uses this information to verify identity and to ensure compliance [citation:3].
Step-by-step online EIN application process
Step 1: Determine your eligibility for online application
The IRS online EIN application is available Monday through Friday, from 7:00 AM to 10:00 PM Eastern Time.
To apply online, you must have a valid Taxpayer Identification Number (SSN, ITIN, or EIN) for the responsible party.
The online application is not available for entities with principal business outside the United States or U.S. territories, unless the responsible party has a valid SSN or ITIN.
If you do not meet these criteria, you must apply by mail or fax using Form SS-4 [citation:3].
Step 2: Gather required information
Before starting the online application, collect the following information about your Texas business:
- The legal name of the business entity (as filed with the Texas Secretary of State, if applicable)
- The trade name or DBA (if operating under a different name)
- The business mailing address and physical address (if different)
- The name and SSN/ITIN of the responsible party
- The type of entity (sole proprietor, LLC, corporation, partnership, etc.)
- The reason for applying (starting a new business, hiring employees, banking purposes, etc.)
- The date the business started or will start paying wages
- The closing month of the accounting year (typically December for most businesses)
- The estimated number of employees in the next 12 months
Step 3: Access the IRS online application portal
Go to the IRS website and search for "EIN application" or navigate directly to the "Apply for an Employer Identification Number (EIN) Online" page.
The application is hosted on the IRS.gov website and is accessible through any standard web browser.
You do not need to create an account; the application is a one-time form submission.
Click the "Apply Online Now" button to begin [citation:3].
Step 4: Complete the application form
The online application mirrors Form SS-4 and is divided into several sections:
- Section 1: Entity Information: Enter the legal name, trade name (if any), business address, and county. For Texas LLCs, use the name exactly as it appears on your Certificate of Formation.
- Section 2: Responsible Party: Enter the name and SSN/ITIN of the responsible party. The responsible party must have authority to act on behalf of the entity.
- Section 3: Entity Type: Select the appropriate entity type from the dropdown menu (e.g., "Limited Liability Company" for LLCs, "Sole Proprietor" for individuals).
- Section 4: Reason for Applying: Check the reason that best describes why you need an EIN (e.g., "Started a new business," "Hired employees," "Banking purpose").
- Section 5: Business Start Date: Enter the date the business began or will begin operations. For a startup that has not yet opened, use the expected opening date.
- Section 6: Closing Month of Accounting Year: Most businesses use a calendar year (December). Enter "December" unless you have a specific fiscal year end.
- Section 7: Number of Employees: Provide an estimate of the maximum number of employees you expect to have in the next 12 months.
Step 5: Submit and receive your EIN instantly
After completing all sections, review the information carefully. Any errors—especially in the legal name or responsible party's SSN—can cause processing delays or rejection.
Once you submit the application, the IRS validates the information. Upon successful validation, the system will display your EIN immediately.
You will also have the option to download, save, and print a confirmation letter (IRS Form CP 575) that serves as official documentation of your EIN.
This letter should be kept with your business records, as you will need it to open bank accounts and complete other filings [citation:3].
Alternative application methods: Mail and fax
If you cannot apply online (for example, if the responsible party lacks an SSN or ITIN), you can apply by mail or fax using Form SS-4.
Download Form SS-4 from the IRS website, complete it manually or electronically, then:
- Fax: Fax the completed Form SS-4 to the IRS at (855) 215-1627 (for domestic applicants). You will generally receive your EIN by fax back within 4 business days.
- Mail: Mail the completed Form SS-4 to the IRS address specified in the form instructions. Mailed applications take approximately 4-6 weeks for processing.
There is no fee for applying by mail or fax either [citation:3].
Applying for an EIN as a foreign national
Non-US residents who wish to form a Texas LLC and obtain an EIN face additional hurdles.
The online EIN application requires a valid SSN or ITIN for the responsible party.
If you do not have either, you cannot use the online system. Instead, you must apply by mail or fax using Form SS-4.
As a foreign applicant, you will need to provide:
- The legal name and address of the foreign entity or individual
- The foreign address (cannot use a PO Box)
- An explanation of why you need an EIN
- The name and title of a principal officer or responsible party (SSN/ITIN not required for the paper form, but strongly encouraged)
Many foreign nationals choose to obtain an Individual Taxpayer Identification Number (ITIN) from the IRS first, which allows them to use the faster online EIN application.
The ITIN application process takes 8-12 weeks. Alternatively, foreign applicants can hire a third-party service (such as Northwest Registered Agent or other LLC formation services) to apply for the EIN on their behalf, though these services typically charge a fee [citation:3].
What to do if you lose or forget your EIN
If you lose your EIN confirmation letter, you can retrieve the number through several methods:
- Check previously filed tax returns: Any federal tax return filed for the business will include the EIN.
- Contact your bank: The bank account opening documents will show the EIN.
- Call the IRS Business & Specialty Tax Line: Call (800) 829-4933. You will need to provide identifying information about the business to verify your authority.
- Review incorporation documents: Some formation services include the EIN in their filing paperwork.
The IRS does not provide an online lookup tool for lost EINs; you must contact them directly or find the number in your existing records [citation:3].
Using your EIN for Texas state filings
Once you have your federal EIN, you will use it to register with the Texas Comptroller of Public Accounts for state taxes, including franchise tax and sales tax.
The Texas Online Tax Registration Application requires your EIN to pre-populate certain information.
Your EIN also serves as the basis for your Texas taxpayer ID number (though they are different numbers).
Keep your EIN accessible, as you will need it for virtually every formal business transaction.
Important reminder: The IRS does NOT charge a fee for issuing an EIN.
Any website or service that charges a fee to "apply for an EIN" is a private company, not the IRS.
These services may offer conveniences like document storage or expedited filing, but you can obtain the exact same EIN for free directly from the IRS website.
Be cautious of scams that claim you must pay to obtain or renew your EIN—EINs never expire and do not require renewal [citation:3].