Getting an EIN for a New York Nonprofit Corporation

An Employer Identification Number is a nine-digit federal tax identification number that the IRS issues. It's the organizational equivalent of a Social Security number — the number that identifies your nonprofit to the federal government, to banks, and to anyone your organization does business with. Despite the word "Employer," you need one whether or not you ever hire a single employee.

For a nonprofit, the EIN isn't optional, and it's not a formality you can defer. You'll need it to:

• Open a bank account — no bank will open an account for the organization without one.
• Apply for 501(c)(3) tax-exempt status — the IRS application requires the EIN.
• Register with the New York Charities Bureau — the state uses it to identify the organization.
• File your annual Form 990 — the return is filed under the EIN.
• Hire and pay employees, and handle payroll tax reporting, if you get to that point.

Because so many downstream steps depend on it, the EIN is one of the first things to secure after the corporation exists.

The right moment to get the EIN is after the New York Certificate of Incorporation is filed, not before. Here's why the order matters: the EIN application asks for the legal name of the organization and, ideally, ties to a real, existing entity. If you apply before the corporation legally exists, you risk a mismatch between the EIN record and the entity — a headache to untangle later, especially when the IRS reviews your 501(c)(3) application and expects the name, formation date, and EIN to line up.

So the clean sequence is: incorporate with New York first, then apply for the EIN, then apply for federal exemption. Getting the EIN is typically the very next task after you receive your filed Certificate of Incorporation, and it usually happens at the organizational meeting when the board authorizes the practical startup steps.

The application is free and available directly from the IRS. Never pay a third party a fee just for the number itself — the IRS charges nothing.

The online application (fastest)

For organizations whose responsible party has a U.S. Social Security number or ITIN, the fastest route is the IRS EIN Assistant at IRS.gov. The online application:

• Takes roughly ten to fifteen minutes to complete.
• Issues the EIN immediately upon completion — you can download the confirmation letter (the CP 575) and use the number the same day.
• Is available during the IRS's posted hours for the tool.

When the form asks about the type of entity, you'll indicate that you're a nonprofit / other tax-exempt organization (or the closest matching category and purpose). Getting the entity type right on the application helps the IRS records match your later exemption filing.

Applying by fax or mail

If the responsible party doesn't have a U.S. taxpayer ID, you apply using Form SS-4 by fax or mail instead of online. This route takes longer — days to weeks depending on the method — so plan ahead if it applies to your organization.

The EIN application asks for a responsible party: a real individual who controls or manages the organization. This is where nonprofit applicants most often get confused.

It has to be a person, not the entity

The responsible party must be an actual human being — typically a founding director or officer — not the nonprofit itself and not another entity. The IRS wants a natural person who effectively controls the organization, along with that person's taxpayer identification number.

Choose someone stable

Because the responsible party is on record with the IRS, pick someone who's genuinely involved and expected to remain so — a committed board officer rather than a volunteer who might disappear. If the responsible party changes later, the organization is expected to update the IRS using Form 8822-B. Keeping that record current avoids confusion down the road, especially when the IRS corresponds about your 990 or exemption.

One EIN per organization

Apply for exactly one EIN for the nonprofit. Don't apply multiple times "to be safe" — duplicate EINs create record-matching problems. If you're unsure whether the organization already has one (for instance, an EIN obtained by a predecessor group), check before applying again.

The EIN unlocks the rest of the startup sequence. With it in hand, the nonprofit can move immediately to the steps that actually make it operational.

Open the bank account

Take the filed Certificate of Incorporation, the EIN confirmation letter, and your bylaws to the bank to open the organization's account. Separate finances aren't just good practice — commingling the nonprofit's money with anyone's personal funds undermines the liability protection and raises exactly the private-benefit concerns that endanger exempt status.

Apply for 501(c)(3) status

With the EIN, the organization can file Form 1023 or 1023-EZ with the IRS to seek tax-exempt status. The EIN identifies the applicant throughout the process and appears on the determination letter when it's issued.

Register and file under the EIN

The EIN becomes the organization's identifier for the New York Charities Bureau registration, the annual CHAR500, and every annual Form 990. Store the CP 575 confirmation letter in your permanent records — banks, grantmakers, and the IRS may ask for it, and getting a replacement is more annoying than simply keeping the original safe.

A few predictable errors cause the most trouble, and all are easy to sidestep.

• Applying before incorporating. Get the Certificate of Incorporation filed first so the EIN ties cleanly to a real entity with a matching name and formation date.
• Paying for the number. The EIN is free from the IRS. Any charge should be for a service's time, never for the number itself.
• Naming the entity as the responsible party. It must be a real person who controls the organization, with a taxpayer ID.
• Getting duplicate EINs. One organization, one EIN. Check before re-applying.
• Losing the confirmation letter. Save the CP 575. You'll be asked for it more than once over the organization's life.