EIN Guide for a Nebraska Nonprofit Corporation

The IRS issues each Employer Identification Number as a nine-digit federal tax identification number. It's the organizational equivalent of a Social Security number — the number that identifies your nonprofit to the federal government, banks, and other institutions. It's sometimes called a Federal Tax Identification Number, but it's the same thing.

For a nonprofit, the EIN isn't optional the way it sometimes is for a single-member LLC. Your organization needs one, and needs it early, because so many essential steps depend on it.

What you can't do without an EIN

• Open a bank account. Every bank requires an EIN to open a nonprofit account. You cannot legitimately hold the organization's money without one.
• Apply for 501(c)(3) status. The IRS Form 1023 and 1023-EZ both require your EIN. No EIN, no exemption application.
• Hire employees. If you'll have paid staff, the EIN is how you report and pay employment taxes.
• File your annual return. The Form 990 series is filed under the EIN.
• Accept certain grants and payments. Funders and payment processors routinely ask for the EIN.

The EIN doesn't grant tax exemption — that's a common mix-up. It simply identifies the organization. Exemption is a separate IRS process that uses the EIN.

Timing the EIN correctly saves headaches. The rule of thumb: incorporate first, then get the EIN, then apply for exemption.

Incorporate before you apply

Apply for the EIN after the Nebraska Secretary of State has created your nonprofit corporation. The IRS application asks for the organization's legal name and formation details, so you want the entity to exist first. Applying before incorporation can create a mismatch between the name the IRS has and the name on your Articles — a small error that causes real friction later, including with your exemption application and your bank.

Get the EIN before the bank and before Form 1023

Two big downstream steps depend on the EIN: opening the bank account and filing the exemption application. Get the EIN squared away right after incorporation so neither of those is blocked. Founders who skip ahead and try to open a bank account first quickly discover they're stuck without the number.

The EIN is free. The IRS never charges for it. If a website tries to charge you a fee "to obtain your EIN," you're paying a middleman for something the government provides at no cost. Apply directly at IRS.gov.

The online application (the fastest way)

1. Go to the IRS EIN Assistant at IRS.gov and start a new application.
2. Select the nonprofit / other nonprofit organization type when prompted (the exact wording varies; choose the option that matches a nonprofit corporation).
3. Provide the responsible party — usually a director or officer — with their Social Security number or ITIN.
4. Enter the organization's legal name (matching your Articles), Nebraska address, and formation details.
5. Submit. The EIN is issued immediately on screen. Save and print the confirmation notice (the CP 575) right away.

The online application takes about ten minutes, and you can use the number the same day. The responsible party needs a valid SSN or ITIN to file online.

If you can't apply online

Applicants without an SSN or ITIN, or organizations that prefer paper, can file Form SS-4 by fax or mail. This is slower — days to weeks depending on the method — so use the online route whenever possible.

The IRS requires a responsible party on the EIN application — a real individual who controls or directs the organization, typically a director or officer. This isn't ownership (a nonprofit has no owners); it's simply the person the IRS treats as the point of accountability for the entity. Choose someone stable in the organization, and keep the responsible-party information updated with the IRS if that person changes.

Mistakes to avoid

• Paying a third party for a free number. The EIN costs nothing from the IRS. Don't pay for it.
• Name mismatches. The name on the EIN application should match your Articles of Incorporation exactly. Mismatches cause problems with your exemption application and your bank.
• Applying before incorporating. Wait until the state has created the entity so the details line up.
• Losing the confirmation notice. Save the CP 575 confirmation. Banks and the IRS may ask for it, and getting a replacement is a hassle.
• Assuming the EIN means you're tax-exempt. It doesn't. The EIN identifies the organization; 501(c)(3) exemption is a separate application you file afterward.

With the EIN in hand, the pieces that were blocked open up. You can open the nonprofit's bank account — bring the filed Articles, the EIN confirmation, and often your bylaws. You can file for 501(c)(3) status using Form 1023 or 1023-EZ, both of which require the EIN. And you have the identifier you'll use on every future Form 990 and in dealings with funders and payment processors.

Keep the EIN and its confirmation notice in your permanent records alongside your Articles of Incorporation, bylaws, and (once you have it) your IRS determination letter. Together, those documents are the core file that proves your organization is real, properly formed, and — once approved — exempt. Any bank, grantmaker, or auditor who needs to verify the organization will ask to see them.