EIN Guide for a Tennessee Nonprofit Corporation

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to identify your organization for federal tax purposes. Think of it as a Social Security number for the nonprofit — a permanent federal identity that stays with the organization for its entire life. It's sometimes called a Federal Tax Identification Number (FEIN), but it's the same thing.

Why a nonprofit specifically needs one

Even though a 501(c)(3) organization is tax-exempt, it still needs an EIN. Exempt doesn't mean invisible to the IRS — quite the opposite. Your nonprofit uses the EIN to:

• Open a bank account. Every bank requires an EIN to open an account in the organization's name. You cannot responsibly run a nonprofit through a personal account, so this is one of the first practical needs.
• Apply for 501(c)(3) status. The IRS exemption application (Form 1023 or 1023-EZ) requires the EIN. You literally cannot apply for exemption without it.
• Hire employees and run payroll. If you ever have staff, the EIN identifies you for employment tax purposes.
• File the annual Form 990. Your information return is filed under the EIN.
• Register for state purposes. Tennessee charitable solicitation registration and any Department of Revenue interactions reference the EIN.

The EIN is the thread that ties your organization's federal and state identities together. Almost nothing official happens without it.

This is the single most common point of confusion for first-time founders, so it's worth being blunt about.

Getting an EIN does not make your nonprofit tax-exempt. The EIN simply gives the organization a federal identity — it's the same kind of number a taxable business gets. Tax-exempt status is a completely separate determination that comes only after you apply to the IRS for 501(c)(3) recognition using Form 1023 or 1023-EZ and the IRS issues a determination letter.

In fact, the sequence runs the other way: you get the EIN first, then use it to apply for exemption. A founder who gets an EIN and assumes the organization is now tax-exempt — able to receive deductible donations and skip income tax — is operating on a dangerous misunderstanding. The EIN is step one of many, not the finish line.

Timing matters, and the right moment is a specific point in the formation sequence.

Incorporate first, then get the EIN

Get the EIN after your Tennessee nonprofit charter is filed and the corporation legally exists — not before. The EIN application asks for the organization's legal name and formation details, so you want the corporation on record first. Applying before you incorporate can create mismatches between your EIN records and your actual legal entity that are annoying to fix later.

Get it before you need a bank account or exemption

Once incorporated, get the EIN promptly, because the next steps depend on it. You need it before you can open the organization's bank account, and you need it before you can file the 501(c)(3) application. Getting the EIN is quick, so there's no reason to delay once the charter is on file.

The IRS issues EINs at no cost. Be wary of any site that charges a fee to "get your EIN" — you can do it yourself for free directly with the IRS.

The online application (fastest)

Apply through the IRS EIN Assistant at IRS.gov. For organizations with a U.S. responsible party who has a Social Security number or ITIN, the application is completed in one session and the EIN is issued immediately — you can print the confirmation and use the number the same day. The session doesn't save, so gather your information before you start.

What you'll need

• The nonprofit's exact legal name, matching your Tennessee charter.
• The organization's address.
• The name and taxpayer ID (SSN or ITIN) of the responsible party — typically a principal officer or director.
• The type of entity (you'll indicate it's a nonprofit / other type of organization) and the reason you're applying.

If the responsible party has no SSN or ITIN

An organization whose responsible party lacks a U.S. SSN or ITIN cannot use the online tool. In that case you apply by fax or mail using Form SS-4, which takes longer but reaches the same result.

The IRS requires every EIN application to name a responsible party — a real person who ultimately controls or directs the organization. For a nonprofit, this is typically a principal officer or a director, not the organization itself.

Who it should be

Choose someone stable and genuinely connected to the organization — a founding officer or board chair is common. The responsible party is an accountability point for the IRS, not an owner (nonprofits have no owners), so the choice doesn't confer any special control beyond what the person already has through their role.

Keep it current

If the responsible party later changes — the founding officer leaves, for instance — the IRS expects you to update the information (using Form 8822-B). It's a small housekeeping task that's easy to overlook, but keeping the responsible-party record accurate avoids confusion in future IRS correspondence.

The EIN unlocks the next stretch of the formation journey. With the number in hand, you can:

• Open the organization's bank account, keeping the nonprofit's money entirely separate from any individual's — essential both for good governance and for preserving the liability protection of the corporate form.
• Apply for 501(c)(3) status with Form 1023 or 1023-EZ, using the EIN on the application.
• Set up payroll if and when you hire staff.
• Register with Tennessee for charitable solicitation (if you fundraise) and establish your franchise-and-excise exemption with the Department of Revenue.

Store the EIN confirmation letter in your permanent corporate records alongside your charter, bylaws, and (once you have it) your IRS determination letter. You'll reference the EIN constantly, and having the original confirmation on hand saves headaches whenever a bank, funder, or agency asks for proof.