Getting an EIN for Your Minnesota Corporation — A Practical Guide

An Employer Identification Number is the nine-digit federal tax identification number the IRS assigns to a business. Think of it as a Social Security number for your business — it identifies the corporation to the federal government for tax purposes, and it's the number banks, payroll systems, and the IRS use to recognize your company.

A corporation always needs an EIN. Unlike a single-member LLC, which can sometimes get by on the owner's Social Security number, a corporation is a separate taxpayer that files its own federal returns, so there's no version of a corporation that operates without an EIN. The moment your Articles of Incorporation are accepted, getting the EIN is the natural next step.

What you'll use it for

• Filing federal returns — Form 1120 for a C corporation, or Form 1120-S if you elect S corporation status
• Opening a corporate bank account — banks require the EIN
• Hiring employees and running payroll — the EIN identifies the corporation as an employer
• State tax registrations — Minnesota tax accounts key off your federal EIN
• Establishing business credit and vendor accounts in the corporation's name

Sequence matters a little here. Form the corporation first, then get the EIN. The EIN application asks for the corporation's legal name and details as they exist, so having your Articles of Incorporation accepted by the Minnesota Secretary of State before you apply keeps everything consistent — the name on the EIN matches the name on the state record.

Once the corporation exists, get the EIN promptly. You'll need it before you can open the corporate bank account, and you can't really operate — deposit money, pay bills, run payroll — until the account is open. In practice, EIN right after formation, then bank account, then you're operational.

The order in plain terms

1. File and get your Articles of Incorporation accepted by the state
2. Apply for the EIN with the IRS
3. Open the corporate bank account using the accepted Articles and the EIN
4. Handle any Minnesota tax registrations, which use the EIN

The most important thing to know about getting an EIN is that it is completely free directly from the IRS. Plenty of websites will offer to "obtain" your EIN for a fee — you never need to pay anyone for the number itself. Apply at the source and it costs nothing.

The online application

Your quickest option is the IRS EIN Assistant, found at IRS.gov. The online application takes about ten minutes, and the EIN is issued immediately at the end — you can download the confirmation and start using the number the same day. The online tool is available during the IRS's posted hours and must be completed in a single session, so gather your information before you start.

What you need to apply

• The corporation's legal name and Minnesota address as they appear on the accepted Articles
• The responsible party's name and taxpayer ID. The IRS requires a "responsible party" — generally an individual who controls the corporation — along with their Social Security number or ITIN to complete the online application
• Basic details about the corporation, such as the number of expected employees and the nature of its business

If you don't have an SSN or ITIN

The online application requires the responsible party to have a US Social Security number or ITIN. If yours doesn't, you can still get an EIN by applying with Form SS-4 by fax or mail, which takes longer than the instant online route but works for responsible parties without a US taxpayer ID.

If you plan to have your corporation taxed as an S corporation, the EIN comes first and the election follows. You need the EIN in hand before you can file Form 2553, the S corporation election, because the form references the corporation's EIN.

The S election is what changes how the corporation is taxed — from a C corporation that pays corporate tax with a second layer of tax on dividends, to a pass-through where income flows to shareholders' personal returns. It's optional, and whether it benefits you depends on how you plan to pay yourself and reinvest. There are timing rules for when Form 2553 must be filed relative to your tax year, so if an S election is part of your plan, get the EIN quickly and talk to your accountant about the filing deadline.

A few mistakes come up often enough to flag.

Paying a third party for a free number

The EIN is free from the IRS. Sites that charge to "get" it for you are charging for a task you can do yourself in ten minutes. Go to IRS.gov directly.

Applying before the corporation exists

Get your Articles accepted first so the name and details on the EIN match your Minnesota record. Applying too early can create mismatches you'll have to untangle later.

Mismatched names

The corporation's name on the EIN should match the name on your Articles of Incorporation exactly. A mismatch causes friction with banks and tax authorities down the line.

Losing the confirmation

When the IRS issues the EIN, save the confirmation notice somewhere permanent. You'll be asked for the EIN and sometimes the confirmation repeatedly — opening the bank account, registering for state taxes, setting up payroll — and it's far easier to keep it than to retrieve it later.

Because the EIN is free and quick directly from the IRS, the honest advice is usually to get it yourself right after your corporation is formed. What Mainstay Filing focuses on is the part that trips people up — getting your Articles of Incorporation filed correctly with the Minnesota Secretary of State so that when you do apply for the EIN, your corporation exists and its details are clean. With the formation handled and the state record accurate, the EIN application becomes the simple ten-minute step it's meant to be.