Getting an EIN for Your Montana Nonprofit

An Employer Identification Number 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 need one whether or not you ever hire a single employee.

For a Montana nonprofit, the EIN is a gateway document. Almost nothing happens without it.

What the EIN unlocks

• A bank account. No bank will open an account for the corporation without an EIN.
• Your 501(c)(3) application. The IRS requires an EIN before you can apply for tax-exempt status on Form 1023 or 1023-EZ.
• Hiring and payroll. If you employ staff, the EIN is how the IRS tracks your payroll tax obligations.
• Vendor and grant relationships. Grantmakers and vendors often ask for the EIN to identify the organization.

A common misconception is that the EIN is the same as tax-exempt status. It isn't. The EIN merely identifies your organization to the IRS; it says nothing about whether you're exempt. You get the EIN first, and exemption is a separate application that comes after.

Timing matters. Apply for the EIN after the state has approved your Articles of Incorporation, not before.

Why the order matters

When you apply for the EIN, the IRS asks for the legal name of the entity and the state and date it was formed. If you apply before the corporation legally exists, you'd be identifying an entity that isn't on record yet, which creates a mismatch. Wait until Montana has accepted your Articles and the corporation is official, then apply. At that point you have the exact legal name and formation date the IRS wants.

Where it fits in the sequence

The clean order is: clear your name, appoint a registered agent, file the Articles of Incorporation, get the state's approval, then apply for the EIN, then adopt bylaws (or adopt them alongside), then apply for 501(c)(3) exemption. The EIN sits right in the middle — after the corporation exists, before you can bank or apply for exemption.

The good news is that getting an EIN is free and, for most nonprofits, fast. The IRS never charges for an EIN; any site that wants to sell you one is charging for something the IRS provides at no cost.

The online application

1. Go to the IRS EIN Assistant at IRS.gov during its operating hours. This is the fastest route.
2. Select the entity type — for a nonprofit corporation, you'll indicate a nonprofit or the appropriate corporation category and note the nonprofit purpose.
3. Enter the legal name and formation details exactly as they appear on your accepted Montana Articles of Incorporation.
4. Provide the responsible party's information, including that person's own taxpayer ID (SSN or ITIN).
5. Submit and receive the EIN immediately. The online system issues the number at the end of the session. Save and print the confirmation notice right away.

If you can't apply online

Applicants without a US taxpayer ID for the responsible party — for instance, some international founders — can apply by fax or mail using Form SS-4. Those routes take longer than the instant online issuance, so plan accordingly if that's your situation.

Every EIN application requires a "responsible party" — the individual who ultimately controls or manages the organization. For a nonprofit, this is a real requirement that deserves a moment's thought.

Who it should be

The responsible party for a nonprofit is typically a director or officer — someone with genuine authority over the organization, such as the board president or treasurer. It must be a natural person, not the entity itself, and the IRS wants that person's taxpayer identification number on the application.

What it means and how to change it

Being the responsible party is an identification role, not personal liability for the organization's debts. It simply tells the IRS who's in charge. If the responsible party later changes — a common event as boards turn over — the organization should update the IRS using Form 8822-B so the agency's records stay current. Keeping the responsible party accurate matters because the IRS uses it to reach the organization.

Getting the number is quick; using and protecting it correctly is the ongoing part.

Put it to work

• Open the bank account in the corporation's name using the EIN and your formation documents.
• File for 501(c)(3) exemption, entering the EIN on Form 1023 or 1023-EZ.
• Use it on all federal filings, including your annual Form 990-series return once you're exempt.

Protect and store it

Keep the EIN confirmation notice (the CP 575) in your permanent corporate records alongside the Articles of Incorporation, bylaws, and eventually the IRS determination letter. You'll be asked for the number repeatedly over the organization's life — by banks, grantmakers, and auditors — so store it where the board can find it even after leadership changes.

Common mistakes to avoid

• Don't pay for an EIN. The IRS issues it free; paid "EIN services" are charging for the free application itself.
• Don't apply before the corporation exists. Wait for state approval so the legal name and formation date match.
• Don't lose the confirmation. Retrieving a lost EIN from the IRS is possible but a hassle; save the notice the first time.
• Don't treat the EIN as proof of exemption. It identifies the organization; only the IRS determination letter proves 501(c)(3) status.

If we're handling your formation, we make sure the Articles are accepted first so your EIN application matches the state record exactly, and we keep the sequence straight so nothing has to be redone.