How to Get an EIN in Delaware
How to Get an EIN in Delaware
An Employer Identification Number, or EIN, is a federal tax identification number that the IRS assigns to your business. If you're starting a business in Delaware, whether as an LLC, corporation, or sole proprietorship, you may need an EIN to operate legally and file taxes. This guide walks you through the process of obtaining one in Delaware.
What Is an EIN and Why You Need One
An EIN is a unique nine-digit identifier issued by the Internal Revenue Service. It works like a Social Security number for your business. You use an EIN when filing federal tax returns, opening a business bank account, hiring employees, and reporting business income to the IRS.
The IRS assigns EINs free of charge. There are no application fees, whether you apply online, by phone, by fax, or by mail.
Do You Need an EIN in Delaware?
Not every Delaware business needs an EIN immediately, but most do. You need one if your business meets any of these criteria:
- You have employees (even one part-time employee)
- You operate as a partnership, LLC, S corporation, or C corporation
- You file any employment, excise, or alcohol, tobacco, or firearms tax returns
- You operate a business that requires a federal license (like a bank or broker)
- You are a nonprofit organization
- You want to open a business bank account separate from your personal account (banks typically require an EIN for sole proprietorships too)
If you are a sole proprietor with no employees, you can use your Social Security number on tax forms instead of an EIN. However, most Delaware business owners apply for an EIN anyway to keep their personal and business finances separate, which is a practical best practice.
Materials You'll Need to Gather
Before you apply for an EIN, gather the following information. You won't submit most of these documents, but you'll need the details when you fill out the application.
- Your Social Security number or Individual Taxpayer Identification Number (ITIN). The person responsible for the business provides this.
- Your legal business name. Use the exact name on your Certificate of Formation (if you formed an LLC or corporation) or your trade name if you registered a DBA.
- Business address. Your principal business address in Delaware, not a P.O. box.
- Mailing address. Can be different from your business address if needed.
- Business structure type. Know whether you formed an LLC, C corporation, S corporation, partnership, or sole proprietorship.
- State EIN or registration number. This is optional but helpful. In Delaware, this is your Certificate of Formation file number if you incorporated a business entity.
- Start date of your business. The date you began operations, not the date you filed your formation documents.
- Expected number of employees. Include yourself if you're planning to pay yourself as an employee.
- Industry classification code. The IRS uses the North American Industry Classification System (NAICS). You can find your code at www.census.gov/naics.
- Banking information (optional). Have the name of your bank ready if you're opening a business account soon.
If you are not a U.S. citizen or resident, you'll also need an ITIN, which you can obtain from the IRS before applying for your EIN.
Step-by-Step Instructions to Get Your Delaware EIN
The IRS offers four methods to apply for an EIN. The fastest is online. Here's how to use each method:
Method 1: Apply Online (Recommended for Speed)
This is the fastest and easiest way to get an EIN. The IRS typically issues one the same day you apply online.
- Go to the IRS website at www.irs.gov/ein or use their online EIN Assistant tool.
- Select your entity type from the dropdown menu (LLC, corporation, partnership, sole proprietorship, etc.).
- Confirm that you have the required information listed above.
- Enter your business name as it appears on your Delaware formation documents.
- Provide your principal business address in Delaware. This must be a physical street address, not a P.O. box.
- Enter your start date (the date you began operations).
- Select your industry classification based on the NAICS code you looked up.
- Provide the responsible party's name, date of birth, and Social Security number or ITIN.
- Review your information for accuracy and submit.
- The IRS will assign your EIN immediately. Write it down or print your confirmation page right away. You can also save your EIN to your IRS account if you create one.
Requirement: You must be in the United States to apply online, and the responsible party's Social Security number must be issued by the SSA (not an ITIN) to complete a same-day application online.
Method 2: Apply by Phone
If you cannot apply online, you can call the IRS Business and Specialty Tax Line to apply for an EIN by phone.
- Call 1-800-829-4933 during business hours (7 a.m. to 10 p.m., Monday through Friday, your local time).
- Tell the representative you need to apply for an EIN.
- Have all the information from the materials list above ready to read to the representative.
- The representative will ask you questions about your business and enter your information into the system.
- They will assign your EIN on the call and provide it to you verbally. Ask them to repeat it.
- The IRS will mail your EIN confirmation letter within two weeks. Your EIN is active immediately by phone; you don't need to wait for the letter.
Method 3: Apply by Fax
You can also complete Form SS-4 by hand and fax it to the IRS.
- Download Form SS-4 from www.irs.gov/forms.
- Print the form and fill it out by hand (or type it). Instructions are included with the form.
- Find the correct fax number for your state on the form instructions. For Delaware, check www.irs.gov/pub/irs-pdf/fss4.pdf for the fax number.
- Fax the completed form to the IRS.
- The IRS will typically call you back within a few days with your assigned EIN, or they'll mail your confirmation letter within two weeks.
- Ask the IRS representative to confirm your EIN in writing before you rely on it for opening a bank account.
Method 4: Apply by Mail
Applying by mail is the slowest option but works if other methods aren't available to you.
- Download and print Form SS-4 from www.irs.gov/forms.
- Complete the form in ink by hand or by typing. Follow the instructions carefully.
- Mail the form to the IRS service center for your region. The form instructions list the correct address for Delaware (it may route to a regional center outside the state).
- The IRS will mail your EIN confirmation letter to your address. This typically takes 4 to 6 weeks.
- Do not use your EIN for business purposes until you receive your confirmation letter from the IRS.
Timeline and Costs
Here's what to expect:
| Application Method | Processing Time | Cost |
|---|---|---|
| Online | Same day (immediate) | Free |
| Phone | Same day (by phone) | Free |
| Fax | 2 to 7 business days | Free |
| 4 to 6 weeks | Free |
There are no filing fees for an EIN. The IRS never charges for issuing one. Be cautious of third-party websites that claim they can get you an EIN faster for a fee. These services are not necessary and are not faster than applying directly to the IRS.
What to Do After You Receive Your EIN
Once you have your EIN, here are the next steps:
- Open a business bank account. Most Delaware banks require an EIN or SSN to open a business account. Visit your bank with a copy of your EIN confirmation letter (or a printout of your online confirmation) and your business formation documents.
- File your Delaware business license. Even though you now have a federal EIN, Delaware also requires a business license from the Division of Revenue. Apply at https://onestop.delaware.gov/.
- Update your business records. Write your EIN on your LLC Operating Agreement, corporate bylaws, and any business licenses or permits.
- Register for state and local taxes. Depending on your business type, you may need to register for sales tax, gross receipts tax, or other state taxes in Delaware. Contact the Delaware Division of Revenue for details.
- Notify the IRS of changes. If your business name, structure, or location changes significantly, you may need to notify the IRS. File Form 8822-B to report changes.
- Apply for other federal licenses if needed. Some industries require additional federal licenses (trucking, alcohol sales, firearms, banking). Check with the IRS if your industry is regulated.
Common Mistakes to Avoid
Here are errors that can slow down your application or cause problems later:
- Using an incorrect business name. Make sure the name you enter on your EIN application matches exactly what appears on your Certificate of Formation or DBA registration in Delaware.
- Submitting a P.O. box as your business address. The IRS requires a physical street address. If your business is home-based, use your residential street address.
- Applying before you have a Delaware business entity. If you've formed an LLC or corporation in Delaware, you may be asked for your Delaware file number or formation date. Have this information ready.
- Selecting the wrong entity type. Be clear about whether you're a sole proprietor, LLC, corporation, partnership, or other structure. Selecting the wrong type can create confusion for tax filing later.
- Forgetting to confirm your EIN on the phone or fax. Write down your EIN as soon as it's provided, and ask the IRS representative to repeat it. Don't rely on memory.
- Using a third-party service to apply. You don't need a tax professional, accountant, or third-party service to apply for an EIN. You can do it yourself for free directly with the IRS.
- Not keeping your confirmation letter. Save your EIN confirmation letter or a printout of your online confirmation. Banks and government agencies will ask to see it.
Tips for Delaware Business Owners
- Get your EIN before opening a bank account. Most banks require an EIN (or SSN) to set up a business checking account. Having your EIN ready speeds up the process.
- Consider forming your Delaware business entity first. If you're forming an LLC or corporation, file your Certificate of Formation with the Delaware Division of Corporations before applying for your EIN. You may need your file number when applying.
- Don't confuse an EIN with a Delaware tax ID. Your EIN is a federal identifier. Delaware also requires a separate business license from the Division of Revenue. Both are necessary.
- Apply online if you qualify. If you're in the United States and the responsible party has a valid Social Security number (not an ITIN), apply online. You'll get your EIN the same day.
- Keep your EIN safe. Treat your EIN like you would a Social Security number. Don't share it on unsecured websites or with unverified third parties. The IRS will never email you or call you unsolicited asking for your EIN.
- Plan ahead if you need one by a specific date. If you need your EIN by a certain deadline (such as to file payroll taxes), apply online or by phone rather than by mail.
Frequently Asked Questions
Do I need an EIN for a Delaware sole proprietorship?
Not strictly required if you have no employees and don't want to open a separate business bank account. However, most business owners apply for one anyway for separation of personal and business finances and to protect their privacy.
Can I use an EIN before I receive the confirmation letter?
Yes, if you applied online or by phone. Your EIN is active immediately. If you applied by fax or mail, wait until you receive your confirmation letter from the IRS before using it.
What if I applied for an EIN but haven't heard back after the expected time?
For online and phone applications, your EIN is issued the same day. If you don't have it, contact the IRS Business Line at 1-800-829-4933. For fax or mail applications, allow the full timeframe before contacting the IRS. If you exceed it by a week, call the IRS to check the status.
Can I change my EIN after it's issued?
No. An EIN is permanent. If you change your business structure (e.g., converting an LLC to a C corporation), you may need a new EIN, but you cannot simply request a different number for an existing business.
Is a Delaware EIN different from a federal EIN?
There is no such thing as a "Delaware EIN." An EIN is always a federal identifier issued by the IRS. Delaware does not issue EINs. You may also need a Delaware business license and a Delaware tax ID for state tax purposes, but these are separate from your federal EIN.
Wrapping Up
Getting an EIN in Delaware is a straightforward federal process. Whether you're starting a new LLC, forming a corporation, or launching a sole proprietorship, applying online is the fastest and easiest option if you qualify. Most Delaware business owners receive their EIN the same day they apply.
After you obtain your EIN, remember that you'll also need to register your business with the Delaware Division of Revenue for a state business license. Both the federal EIN and the state license are essential for operating legally in Delaware.
For a related look at forming a business entity in Delaware, see our guides on LLC formation in Delaware and obtaining a Delaware business license.
Disclaimer
This article is informational content only and does not constitute legal advice, tax advice, or professional financial advice. The rules for obtaining an EIN are set by the IRS and may change. Always verify current requirements on the official IRS website at www.irs.gov before submitting your application. For complex business situations or if you have questions about whether your business needs an EIN, consult a qualified tax professional, CPA, or attorney licensed in Delaware.