EIN Guide for Alabama Corporations — How to Get Your Federal Tax ID

An Employer Identification Number is a nine-digit number the IRS assigns to identify a business for federal tax purposes. It's the corporate equivalent of a Social Security number — the identifier that appears on tax returns, payroll filings, and bank paperwork.

Corporations always need one

Unlike a single-member LLC, which can sometimes operate on the owner's Social Security number, a corporation always needs its own EIN. A corporation is a separate taxpayer that files its own return, so there's no version of it that runs on a personal SSN. Whether you're a one-person S corporation or a company with a full board, the EIN is non-negotiable.

What you'll use it for

• Filing federal corporate returns (Form 1120 for a C corporation, 1120-S for an S corporation)
• Opening a corporate bank account — banks require it
• Running payroll and handling employment taxes
• Making the S corporation election on Form 2553
• Registering with the Alabama Department of Revenue for state tax accounts

The EIN is essentially the key that unlocks every downstream step after formation. Without it, you can't bank, can't hire, and can't file.

Timing matters. The EIN sits in a specific spot in the formation sequence, and applying at the wrong time causes avoidable friction.

Form the corporation first

Wait until your Articles of Incorporation are filed and the corporation exists before you apply. The EIN application asks for the legal business name and formation details, and applying for an EIN before the corporation is officially formed creates mismatches that cause problems later. Incorporate first, then get the EIN.

Get it before you bank

Apply right after formation, because nearly everything else depends on it. You can't open the corporate bank account without the EIN, and you can't properly separate business finances — the backbone of the liability shield — without that account. The typical order is: incorporate, get the EIN, open the bank account, then register with the Department of Revenue.

The fastest and most common route is the IRS online application, which issues the EIN immediately.

Online (recommended)

Go to the IRS EIN Assistant. The application is free and available during posted hours. Walking through it:

• Select corporation as the entity type.
• Provide the corporation's legal name exactly as it appears on your Articles of Incorporation, and the Alabama address.
• Identify the responsible party — an individual who controls the corporation — with their name and Social Security number or ITIN.
• Answer basic questions about your business activity and whether you expect to have employees.
• Submit, and the EIN issues on the spot. Download and save the confirmation letter (CP 575) immediately — it's the official record and you'll be asked for it.

By fax or mail

If you can't use the online tool, file Form SS-4 by fax or mail. Fax turnaround is typically a few business days; mail takes several weeks. This is the route for applicants who don't have an SSN or ITIN and therefore can't complete the online application.

Watch out for paid imposters

The IRS never charges for an EIN. Third-party sites that offer to "get your EIN" for a fee are charging for something the IRS provides free. Go directly to IRS.gov.

A few scenarios come up often enough to address directly, because they don't fit the simple online path.

Non-US owners without an SSN or ITIN

The online EIN tool requires the responsible party to have a US Social Security number or ITIN. If your corporation's responsible party is a foreign individual without either, you can't use the online application — you file Form SS-4 by fax or mail, where the responsible party can be identified without an SSN. This is a well-worn path; non-US founders incorporate in the US and obtain EINs routinely, it just takes longer than the instant online route.

The responsible party

The IRS wants a real individual as the responsible party — the person who ultimately owns or controls the corporation — not another entity, in most cases. Choose the right person, because the IRS ties the corporation's EIN record to them. If the responsible party changes later, you update the IRS using Form 8822-B.

One EIN per corporation

A corporation gets one EIN and keeps it. You don't get a new one each year or when you change your address or registered agent. You'd generally only need a new EIN if the corporation's structure fundamentally changes — for example, certain conversions or ownership changes. Routine updates don't require a new number.

The EIN is a means to an end. Once it's in hand, it unlocks the rest of your setup.

Immediate next steps

• Open the corporate bank account. Bring the EIN confirmation, your filed Articles of Incorporation, your bylaws, and a banking resolution. Keeping business money in a dedicated account is essential to the liability shield.
• Register with the Alabama Department of Revenue. Use the EIN to set up your state tax accounts, including the Business Privilege Tax and, if applicable, withholding and sales tax.
• Make the S corporation election on Form 2553 if that's your plan — you need the EIN first, and there are deadlines for the election to take effect for a given tax year.
• Set up payroll if you'll have employees, including yourself as an officer drawing a salary under an S corporation.

Keep the confirmation safe

Store the CP 575 confirmation letter with your permanent corporate records. Banks, the state, and payroll providers all ask for it, and the IRS doesn't reissue the original — you can only request a less formal confirmation letter later. Save a copy the moment you receive it.