EIN Guide for North Dakota Nonprofit Corporations

An Employer Identification Number is a nine-digit number the IRS assigns to identify your organization for federal purposes. Think of it as a Social Security number for the corporation. Despite the word "Employer" in the name, you need one whether or not you ever hire anyone — the name is a historical artifact, not a limitation on who needs the number.

For a nonprofit corporation, the EIN is foundational. You cannot open a business bank account without it. You cannot apply for 501(c)(3) tax-exempt status without it. You cannot file the annual Form 990 series without it. Any grant application, payroll setup, or vendor relationship that asks for your tax ID is asking for the EIN. It is one of the first things you get after the corporation legally exists, and everything downstream depends on it.

Why not just use a personal SSN?

Because the nonprofit is a separate legal entity, and it needs its own identity with the IRS. Running organizational finances or filings under an individual's Social Security number blurs the line between the person and the organization — exactly the separation a corporation is supposed to create. The EIN keeps the nonprofit's federal identity distinct from any founder or director.

Timing matters. Getting the EIN at the wrong point in the process causes avoidable friction, so slot it in correctly.

Incorporate first, then get the EIN

Apply for the EIN after your Articles of Incorporation are filed with the North Dakota Secretary of State, not before. The IRS application asks for the exact legal name of the corporation, and you want that name already established on the state's records so the two match. Getting an EIN under a name that doesn't match your filed Articles creates confusion you'll have to unwind later.

Get the EIN before these steps

• Before applying for 501(c)(3) status — the IRS exemption application requires the EIN.
• Before opening a bank account — banks require the EIN and your formation documents.
• Before hiring anyone or setting up payroll — payroll systems and tax filings are keyed to the EIN.

So the EIN sits in the middle of your launch: after incorporation, before the bank account and the exemption application. It's a quick step, but it's a gate — several things can't happen until it's done.

The good news is that getting an EIN is free, fast, and entirely within your control. Do it directly with the IRS and it costs nothing.

The online application

• Go to the IRS EIN Assistant at IRS.gov. This is the official, free application.
• The online tool is available during posted hours (generally weekday business hours, Eastern time).
• You'll identify the entity as a nonprofit corporation and provide the corporation's legal name and North Dakota address.
• You'll name a "responsible party" — typically a principal officer or director — with their own taxpayer identification number.
• Complete the application in one session; it takes about ten minutes and can't be saved partway through.
• The EIN is issued immediately on completion. Save and print the confirmation notice right away — it's your proof of the number.

If you can't apply online

A responsible party without a U.S. Social Security number or ITIN can't use the online tool and must apply using Form SS-4 by fax or mail, which takes longer. For most domestic nonprofits with a U.S.-based officer, the online route is fastest and issues the number the same day.

The EIN process is simple, but a handful of missteps recur often enough to be worth flagging.

Don't pay for an EIN

The most important thing to know: the IRS issues EINs for free. Third-party sites that charge a fee "to obtain your EIN" are charging you for something the government does at no cost in about ten minutes. There is never a reason to pay a fee whose only value is getting a number you can get yourself for free.

Match the name to your Articles

Apply under the exact legal name on your filed Articles of Incorporation. A mismatch between your EIN record and your state record causes problems with banks, the exemption application, and future filings. Get the corporation formed first, then apply with the precise name.

Choose the right responsible party

The responsible party should be a real principal of the organization — usually an officer or director — with authority over the corporation, not an outside helper or a placeholder. The IRS uses this designation as a point of accountability, so name someone genuinely connected to the nonprofit's governance.

Keep the confirmation safe

The confirmation notice the IRS issues when the EIN is assigned is an important document. Store it with your permanent corporate records alongside your Articles and bylaws. You'll reference the EIN constantly, and having the original confirmation on hand saves headaches when a bank or grant-maker wants to verify it.

Getting the number is a milestone, not the finish line. With the EIN in hand, several doors open at once.

Immediate next steps

• Open a business bank account in the nonprofit's name, using the EIN and your filed formation documents, so the organization's finances are cleanly separate from any individual's.
• Apply for 501(c)(3) tax-exempt status with the IRS using Form 1023 or 1023-EZ, which requires the EIN.
• Set up any payroll and reporting systems if you'll have employees, keyed to the EIN.
• Use the EIN on grant applications and vendor forms whenever a tax ID is requested.

The EIN threads through the entire life of the nonprofit — every federal filing, every bank interaction, every funder relationship references it. Getting it right early, for free, directly from the IRS, sets a clean foundation for everything the organization does afterward. It's a small step with outsized importance, which is why it deserves its own careful walk-through rather than being rushed.