EIN Guide for a Connecticut Nonprofit Corporation

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to identify an organization for federal tax purposes. It's the organizational equivalent of a Social Security number. Despite the word "Employer," you don't need employees to need one — nearly every nonprofit does, whether or not it ever hires anyone.

Why your Connecticut nonprofit can't function without it

• Bank account — no bank will open an account for the organization without an EIN. Your nonprofit's money has to live in its own account, separate from any individual's, and the EIN is what makes that account possible.
• Tax-exempt application — you cannot apply to the IRS for 501(c)(3) status without an EIN. The exemption application asks for it.
• Hiring — if you ever bring on staff, the EIN is how payroll taxes are reported.
• Identity — grant applications, vendor accounts, and official filings reference the EIN as the organization's federal identifier.

In short, the EIN is the hinge between forming the corporation and doing anything real with it.

Timing is the part people most often get wrong, and getting it wrong creates avoidable cleanup.

Incorporate first, then get the EIN

Apply for the EIN after the Connecticut Secretary of the State has formed your corporation, not before. The EIN attaches to the legal entity, and the application asks for the corporation's exact legal name and formation details. If you apply before the corporation exists — or using a name that doesn't match the filed Certificate of Incorporation — you can end up with an EIN tied to the wrong or nonexistent entity, which the IRS then has to untangle.

Then use the EIN for everything downstream

Once you have the EIN, the rest of the launch sequence unlocks: open the bank account, then apply for 501(c)(3) exemption. Each step depends on the one before it, and the EIN sits right in the middle. Get the corporation formed, get the EIN, and the rest follows in order.

Applying is free and, for most nonprofits, fast. The IRS issues EINs directly — never pay a third party a "fee" for the number itself, though a service may charge for handling the application on your behalf.

The online application

For most applicants, nothing beats the IRS EIN Assistant online at IRS.gov. The online application:

• Takes about ten to fifteen minutes to complete in one sitting (it times out if you pause too long).
• Issues the EIN immediately on completion — you can download the confirmation letter (CP 575) and use the number the same day.
• Is available to applicants whose responsible party has a Social Security number or ITIN.

Choosing the right entity type on the form

When the application asks what type of entity you are, select the option for a nonprofit or tax-exempt organization — not "corporation" in the for-profit sense. Getting this right keeps the IRS's records aligned with the fact that you'll be pursuing exempt status.

The responsible party

The IRS requires a "responsible party" — a real individual who controls or manages the organization, typically a founding director or officer. This is a person, not the entity, and their SSN or ITIN is used to verify the application. It doesn't make that person personally liable for the organization; it's an identity and accountability measure.

The online application is the default, but it isn't the only route, and some nonprofits need an alternative.

Fax or mail with Form SS-4

If the responsible party doesn't have an SSN or ITIN — which can happen with international founders — you can't complete the online application. Instead, file Form SS-4 by fax or mail. Fax responses typically come back within a few business days; mail takes considerably longer. Plan for the delay if this applies to you, because the EIN gates the bank account and the exemption application behind it.

One EIN per organization

Your nonprofit needs exactly one EIN, and it keeps that number for its entire life. Don't apply for a second one because you changed your address, added a program, or updated your board. If you accidentally end up with duplicate EINs, contact the IRS to sort out which one is active rather than using both.

The EIN isn't a one-and-done item you file away and forget — it's the identifier you'll use constantly, so handle it deliberately.

Keep the confirmation letter safe

The IRS confirmation (CP 575) is issued once and isn't easily reissued. Save the PDF and a printed copy in your permanent corporate records alongside your Certificate of Incorporation and, later, your IRS determination letter. Banks and grantmakers sometimes ask to see it.

Use it consistently

Use the exact same legal name and EIN across your bank account, filings, grant applications, and the exemption application. Inconsistencies — a slightly different name on the bank account than on the EIN letter — cause friction with banks and the IRS. Consistency here is a small discipline that prevents a lot of small headaches.

The EIN is not your tax exemption

Having an EIN does not make your nonprofit tax-exempt. The EIN just identifies the organization; exemption is a separate status you apply for and the IRS grants. Plenty of new nonprofits have an EIN and are not yet exempt — the EIN is a prerequisite for the exemption application, not a substitute for it.