Getting an EIN for Your Colorado Nonprofit

An Employer Identification Number, or EIN, is a nine-digit number the IRS assigns to identify your organization for federal tax purposes. Think of it as a Social Security number for your nonprofit — it is how the federal government, banks, and other institutions recognize your corporation as a distinct entity.

Even though a nonprofit's goal is not profit, it still exists in the federal system and needs a federal identity. An EIN is a prerequisite for nearly everything a functioning nonprofit does.

What you need an EIN for

• Opening a bank account — no bank will open a nonprofit account without an EIN
• Applying for 501(c)(3) tax exemption — the IRS application requires your EIN
• Hiring employees — the EIN is used for payroll and employment tax reporting
• Filing your annual Form 990 — your return is tied to your EIN
• Registering for charitable solicitation and other state programs that ask for a federal ID

A common point of confusion

Getting an EIN does not make your organization tax-exempt. This trips up many founders. The EIN simply gives your corporation a federal identity; tax exemption is a separate application to the IRS. You need the EIN first, but having it says nothing about your tax status.

Timing matters. Apply for your EIN after your Colorado nonprofit corporation legally exists — that is, after your Articles of Incorporation have been filed and accepted by the Secretary of State.

Why the order matters

The EIN application asks for your legal entity name and formation details. Applying before the corporation exists means you would be requesting an EIN for an entity that is not yet real, which creates mismatches down the line. Because Colorado approves online filings instantly, there is rarely a reason to jump ahead — you can form the corporation and apply for the EIN the same day.

The typical sequence

1. File the Articles of Incorporation with the Colorado Secretary of State and confirm the corporation exists
2. Hold your organizational meeting and adopt bylaws
3. Apply for the EIN with the IRS
4. Open a bank account using the EIN and your formation documents
5. Apply to the IRS for 501(c)(3) tax exemption

The EIN sits right in the middle of this sequence — after the corporation is real, before the bank account and the exemption application.

The good news is that an EIN is free and, for most organizations, takes only minutes to obtain. The IRS never charges for an EIN, and any website that wants to charge you for the number itself is not the IRS.

The online method (fastest)

Apply through the IRS EIN Assistant at IRS.gov. This is the preferred method for organizations whose responsible party has a US Social Security number or ITIN.

• The application takes about ten minutes to complete in a single session
• The number is issued immediately at the end — you can download and print the confirmation on the spot
• The online tool is available during posted IRS hours, so plan to complete it in one sitting

What the application asks

• Entity type — you select that you are a nonprofit or "other" organization, not an LLC or a for-profit corporation
• Legal name and address of the corporation, matching your Articles
• Responsible party — a real person (typically a director or officer) with a valid SSN or ITIN, who is the individual controlling the organization
• Reason for applying — starting a new organization

If you cannot apply online

Organizations whose responsible party lacks an SSN or ITIN cannot use the online tool. In that case, you apply using Form SS-4, submitted by fax or mail. This is slower — fax responses take several business days and mail can take weeks — so allow extra time if this is your situation.

The EIN unlocks the next stage of building your nonprofit. Once you have the number in hand, several doors open.

Immediate next steps

• Open a dedicated nonprofit bank account. Keeping the organization's finances separate from any individual's is essential to the liability shield and to clean books. Bring your filed Articles, your EIN confirmation, and your bylaws — most banks ask for all three.
• Apply for 501(c)(3) status. With the EIN and bylaws in place, you can file Form 1023 or Form 1023-EZ with the IRS. Your EIN is required on the application.
• Set up bookkeeping. Use the EIN consistently on all financial accounts and filings so your records line up when it is time to file Form 990.

Keep the confirmation safe

Store your EIN confirmation letter (the IRS calls it the CP 575) with your permanent corporate records. You will reference the EIN repeatedly — on the tax-exemption application, on bank paperwork, on grant applications, and on every annual 990. If you ever lose the number, you can retrieve it by contacting the IRS, but keeping the original confirmation saves that trouble.

Avoiding common EIN mistakes

A few errors show up again and again with new nonprofits. The first is applying too early — before the Colorado corporation exists — which produces an EIN attached to details that do not match your filed Articles. The second is selecting the wrong entity type; a nonprofit should not identify itself as an LLC or a for-profit corporation on the application, because that classification follows the organization and can complicate the tax-exemption review later. The third is naming a responsible party who is not genuinely in control of the organization. Take a few minutes to get these right the first time, because correcting an EIN record with the IRS after the fact is more tedious than getting it right at application.

Where Mainstay Filing fits

Because the EIN application requires a responsible party with a valid SSN or ITIN and involves the IRS directly, obtaining the EIN is typically something your organization's responsible party completes. Mainstay Filing focuses on the Colorado side — preparing and filing your Articles of Incorporation so the corporation exists and is ready for the EIN application — and on registered agent service and your Periodic Report. We can point you to the right IRS resources so the EIN step goes smoothly and in the right order.