EIN Guide for an Oregon Corporation — What It Is and How to Get One

An Employer Identification Number is a nine-digit number the IRS assigns to identify a business for federal tax purposes. Think of it as a Social Security number for your corporation. It appears on the corporation's tax returns, on payroll filings, and on the paperwork banks use to open business accounts.

A corporation is a separate taxpayer from its owners, and that is exactly why it needs its own EIN. Unlike a sole proprietor, who can often use a personal Social Security number, a corporation cannot run on an owner's SSN. The corporation files its own returns and is treated as its own entity by the IRS, so it needs its own federal identifier from day one.

What you'll use the EIN for

• Filing the corporation's federal income tax return.
• Opening a corporate bank account (banks require the EIN).
• Hiring employees and handling payroll tax deposits and returns.
• Making a federal tax election, such as electing S-corporation status.
• Applying for business licenses and setting up accounts with vendors and processors.

The EIN is one of the first things you get after the state accepts your Articles of Incorporation, because so much else — the bank account, payroll, tax elections — depends on having it.

Timing matters. You want your EIN after your corporation legally exists but before you try to do anything that requires it.

Form the corporation first

Apply for the EIN after the Oregon Secretary of State has accepted your Articles of Incorporation, so the corporation actually exists as an entity. Applying before the corporation is formed puts you in the awkward position of getting a federal ID for an entity the state has not yet recognized. Let the formation clear first, then apply.

But apply before you need it downstream

Once formed, apply promptly, because the EIN gates the next steps:

• You cannot open a corporate bank account without it.
• You cannot run payroll or hire employees without it.
• An S-corporation election generally requires the EIN.

Getting the EIN early removes a bottleneck. The good news is that the online application issues the number immediately, so this step does not have to slow you down — you can typically form, get the EIN, and open a bank account in quick succession.

The IRS issues EINs directly, for free. Be wary of any site that charges a fee simply to "obtain" an EIN for you; the number itself always costs nothing from the IRS.

Applying online

The fastest route is the IRS EIN Assistant at IRS.gov. The online application:

• Takes about ten minutes to complete in one session.
• Issues the EIN immediately upon completion, so you can print the confirmation and use the number the same day.
• Is available during the IRS's posted hours for the tool.

To apply online, the corporation's responsible party needs a valid US Social Security number or ITIN. The responsible party is the person who ultimately controls the corporation — usually a principal officer or a controlling shareholder.

If you can't apply online

Applicants whose responsible party does not have an SSN or ITIN cannot use the online tool. They apply by fax or mail using Form SS-4, which takes longer — several business days by fax, and longer by mail. International applicants without a US taxpayer ID have a phone option in some cases. If this is your situation, start early, because the timeline is measured in days or weeks rather than minutes.

A little preparation makes the application go smoothly, whether you file online or on paper.

Information to have ready

• The exact legal name of the corporation as it appears on your filed Articles of Incorporation.
• The formation state and date — Oregon and your incorporation date.
• The corporation's principal business address in Oregon (or wherever your principal office is).
• The responsible party's name and SSN or ITIN.
• A brief description of the corporation's business activity and its expected number of employees, if any.
• The reason you are applying — usually "started a new business."

Common pitfalls to avoid

• Name mismatches: Use the corporation's legal name exactly as filed. A mismatch between the EIN record and your Articles can cause friction with banks later.
• Applying too early: Wait until the state has accepted your Articles so the corporation exists.
• One EIN per entity: Your corporation gets one EIN. Do not apply repeatedly; if you already have one for the entity, reuse it.

The EIN unlocks the practical steps of standing up your corporation, and you should keep the confirmation somewhere safe because you will reference it repeatedly.

Put it to work

• Open the corporate bank account. Bring the EIN confirmation, your filed Articles of Incorporation, your bylaws, and ID. A dedicated corporate account is essential for keeping finances separate and preserving the liability shield.
• Set up payroll if you will have employees or pay yourself a salary as an officer, which is common in S-corporations.
• Make your tax election if applicable — an S-corporation election is filed with the IRS and references the EIN.
• Register for state taxes with the Oregon Department of Revenue, which will use the EIN to identify the corporation.

Keep the confirmation

Store the IRS confirmation letter (the CP 575, or an EIN confirmation you print online) with your corporate records. Banks, lenders, and tax preparers ask for it, and reconstructing a lost EIN through the IRS is slower than simply keeping the original on file.