If you're starting a business, hiring employees, or opening a business bank account, you'll likely need an Employer Identification Number (EIN). The SS4 Form Explained guide will walk you through everything you need to know about this important IRS document. Also known as Form SS-4, this application is your gateway to obtaining a federal tax ID number. Understanding how to complete and submit this form correctly can save you time and help you avoid common mistakes that delay processing.
What Is the SS-4 Form and Why Do You Need It?
The SS-4 Form is an official IRS document used to apply for an Employer Identification Number. Think of an EIN as a Social Security number for your business. This nine-digit number identifies your business entity for tax purposes and is required for various business activities.
You need an EIN if you plan to:
- Hire employees and report employment taxes
- Open a business bank account
- Operate as a corporation or partnership
- File tax returns for excise, employment, alcohol, tobacco, or firearms
- Withhold taxes on income paid to non-resident aliens
Even sole proprietors without employees often get an EIN to keep their personal and business finances separate. The form itself is free, and the IRS doesn't charge any fees to process your application.
Who Can Apply for an EIN?
To apply for an EIN, you must have a valid Taxpayer Identification Number (SSN, ITIN, or EIN). The person applying must be the principal officer, general partner, grantor, owner, or trustor. International applicants can also apply, though they may need to use different application methods than U.S.-based businesses.
Step-by-Step Guide to Completing the SS-4 Form
The SS-4 Form contains several sections that require specific information about your business. Let's break down each part to make the process straightforward.
Basic Business Information (Lines 1-6)
Start by providing your legal business name exactly as it appears on your formation documents. If you operate under a different name (a "doing business as" or DBA name), you'll list that separately. Include your business address - this should be a physical location, not a P.O. Box, though you can list a P.O. Box for mailing purposes on a different line.
You'll also need to specify the county and state where your principal business is located. This information helps the IRS assign your application to the correct processing center.
Responsible Party Details (Lines 7-8)
Line 7 asks for the name of the responsible party. This person controls, manages, or directs the entity and its funds. For corporations, this is typically a principal officer. For partnerships, it's a general partner. Sole proprietors list themselves.
You must provide the responsible party's Social Security Number or Individual Taxpayer Identification Number. This requirement helps prevent fraud and ensures accountability.
Entity Type and Reason for Application (Lines 9-10)
Line 9 asks you to select your business entity type. Common options include sole proprietorship, partnership, corporation, and limited liability company (LLC). Choose the option that matches your official business structure.
Line 10 requires you to explain why you're applying for an EIN. Options include starting a new business, hiring employees, banking purposes, or changing your business type. Select the option that best fits your situation.
Additional Information (Lines 11-17)
These lines gather specific details about your business operations. You'll indicate when your business started or was acquired, your accounting year end, and the highest number of employees you expect to have. Be honest and realistic with your estimates.
You'll also specify your principal business activity and describe your products or services. The IRS uses this information to classify your business according to the North American Industry Classification System (NAICS).
Key Takeaways:
- The SS-4 Form is free and required to obtain an EIN from the IRS
- You can apply online, by mail, fax, or phone depending on your location
- Provide accurate information about your business structure and responsible party
- Online applications receive EINs immediately, while paper applications take 4-6 weeks
How to Submit Your SS-4 Form
The IRS offers multiple ways to submit your application, each with different processing times.
Online Application
The fastest method is the online EIN application. Available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time, this service provides your EIN immediately upon completion. You must complete the application in one session (it times out after 15 minutes of inactivity).
The online system is only available to businesses with a principal business location in the United States or U.S. territories. The responsible party must have a valid Taxpayer Identification Number.
Mail or Fax Submission
If you prefer paper applications or aren't eligible for online filing, you can mail or fax your completed SS-4 Form. Fax applications typically receive responses within four business days. Mailed applications take four to six weeks to process.
Send your application to the appropriate IRS address based on your location. The IRS website provides current mailing addresses and fax numbers for different states and international applicants.
Phone Application
International applicants can call the IRS to apply for an EIN. This service is available for businesses with no legal residence, principal place of business, or principal office in the U.S. or its territories. Call 267-941-1099 (not a toll-free number) during business hours.
Common Mistakes to Avoid
Many applicants make simple errors that delay their EIN approval. Here are the most common mistakes:
- Incorrect entity type: Make sure you select the business structure that matches your legal formation documents
- Missing information: Complete all required fields. Blank spaces cause processing delays
- Wrong responsible party: List the person who actually controls the business, not an employee or advisor
- Duplicate applications: Don't submit multiple applications for the same business. This creates confusion and delays
- Using a P.O. Box for principal address: Your principal business address must be a physical location
Review your form carefully before submission. Double-check all names, addresses, and identification numbers for accuracy.
Conclusion
Understanding the SS4 Form process makes obtaining your EIN straightforward and stress-free. Whether you choose to apply online for immediate results or submit a paper application, following the steps outlined above ensures accurate completion. Remember that the online method provides the fastest service for eligible applicants, while international businesses can use phone or fax options. Take your time filling out each section, verify all information is correct, and keep a copy of your completed form for your records. With your EIN in hand, you'll be ready to open business accounts, hire employees, and handle all your tax obligations properly.
FAQ
The processing time depends on your submission method. Online applications receive EINs immediately upon completion. Fax applications typically get responses within four business days. If you mail your SS-4 Form, expect to wait four to six weeks for processing. For fastest results, use the online application system if you're eligible.
Yes, international applicants can obtain an EIN. However, you cannot use the online application system. Instead, call the IRS at 267-941-1099 or submit your SS-4 Form by fax. You'll need a valid Taxpayer Identification Number (which can be an ITIN) and must identify a responsible party for the business entity.
No, the IRS does not charge any fees to process Form SS-4 or issue an EIN. The service is completely free whether you apply online, by mail, fax, or phone. Be cautious of third-party websites that charge fees for EIN services - you can always apply directly through the IRS at no cost.
If you discover an error before submitting, simply correct it on the form. For online applications, you can go back and fix mistakes before final submission. If you've already received your EIN and need to change information, you'll need to write to the IRS explaining the error and providing correct information. Some changes, like business structure, may require a new EIN.
Yes, you can use your EIN immediately for most purposes like opening a bank account or filing tax forms. However, it may take up to two weeks for your EIN to be fully activated in all IRS systems. If you need to verify your EIN with certain organizations shortly after receiving it, they may need to wait a few days for the number to appear in verification databases.