Getting an EIN for Your Texas Corporation

An Employer Identification Number (EIN) 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 tax filings, payroll records, and the paperwork you hand a bank to open an account.

Corporations always need one

Unlike a single-member LLC, which can sometimes get by on the owner's Social Security number, a corporation always needs its own EIN. A corporation is a separate taxpayer that files its own federal return, so the IRS requires it to have its own identifier. There's no scenario where a functioning Texas corporation skips the EIN.

What you'll use it for

• Filing federal returns — Form 1120 for a C-corporation, Form 1120-S for an S-corporation.
• Opening a corporate bank account — banks require the EIN.
• Hiring employees and running payroll — the EIN ties your business to federal employment tax accounts.
• Making an S-corp election — Form 2553 references your EIN.
• Setting up merchant accounts, credit, and vendor relationships that ask for a federal tax ID.

Timing matters. You apply for the EIN after your Certificate of Formation is filed and the corporation legally exists, but before you open a bank account or start operations.

The right sequence

1. File the Certificate of Formation with the Texas Secretary of State and get it approved.
2. Apply for the EIN with the corporation's exact legal name as filed.
3. Hold your organizational meeting, adopt bylaws, and issue stock.
4. Open the corporate bank account using the filed certificate and the EIN.

Applying before the corporation exists causes a mismatch — the IRS is issuing a number to an entity that isn't yet on record. Applying with a name that doesn't match your filed certificate creates headaches with banks later. Get the formation approved first, then apply with the exact matching name.

The IRS issues EINs directly, for free, and the fastest route is the online application.

Online (fastest)

Go to IRS.gov and use the EIN Assistant. The application:

• Is free — the IRS never charges for an EIN.
• Takes about ten minutes to complete.
• Issues the number immediately upon completion — you can download and print the confirmation and use the EIN the same day.
• Is available during the IRS's posted hours (typically weekday daytime hours, Eastern time).

To apply online, the responsible party — generally a principal officer of the corporation — needs a valid U.S. Social Security number or ITIN. You'll provide the corporation's legal name, Texas address, formation date, and the responsible party's information.

By fax or mail

If you can't apply online — for example, the responsible party has no SSN or ITIN — file Form SS-4 by fax or mail. Fax turnaround is typically a few business days; mail takes several weeks. International applicants without a U.S. taxpayer ID can also apply by phone in some cases.

The IRS requires every EIN application to name a responsible party — the individual who controls or manages the corporation and its funds. For a corporation, this is usually a principal officer such as the president.

What to know

• The responsible party must be a natural person, not another entity (with narrow exceptions for certain government and specialized entities).
• The IRS uses the responsible party's SSN or ITIN to validate the online application.
• You can update the responsible party later by filing Form 8822-B if the person changes — for example, if leadership turns over.

Naming the responsible party accurately matters because the IRS ties the EIN account to that person's identity. Don't put a placeholder or an entity where a person belongs.

EIN applications are simple, but a handful of avoidable errors cause real friction.

Don't pay a third party to "get" your EIN

Numerous websites offer to obtain an EIN for a fee. The IRS issues EINs for free. A filing service may include EIN acquisition as a convenience within a broader formation package, but the number itself has no cost. Never pay a standalone fee to a site whose only service is submitting the free IRS application for you.

Match the corporate name exactly

Apply using the exact legal name on your filed Certificate of Formation, including the corporate designator (Inc., Corp., etc.). A mismatch between your EIN records and your formation documents can cause a bank to reject your account opening.

Apply once

Don't submit multiple applications for the same corporation. If you make an error, the correct fix is usually to update the existing EIN account, not to request a second number. Duplicate EINs create confusion with the IRS and your bank.

Keep the confirmation

The IRS issues a CP 575 confirmation letter (online applicants can download it immediately). Store it with your corporate records — banks frequently ask to see it, and reproducing it later requires contacting the IRS.

Once the EIN is in hand, it becomes part of your corporation's core identity. A few next steps and reminders:

• Open your corporate bank account with the filed certificate, the EIN confirmation, and a corporate resolution.
• Reference the EIN on tax filings — your federal return, payroll filings, and any S-corp election.
• Give it to vendors and payers as needed on Form W-9 so they can issue 1099s to the corporation.
• Guard it like you would a Social Security number; it's sensitive.
• Keep it forever — an EIN belongs to the corporation for its life and is never reused, even after the corporation dissolves. When you eventually close the corporation, you notify the IRS to close the business account, but the number itself isn't reassigned.

The EIN is one of the few steps in forming a Texas corporation that's genuinely quick and free. Get the formation approved, apply directly with the IRS, keep the confirmation, and move on to opening your account.