EIN for a Virginia Corporation — Federal Tax ID Guide

An Employer Identification Number (EIN), also called a Federal Employer Identification Number or federal tax ID, is a nine-digit number the IRS assigns to your business. It functions as the corporation's equivalent of a Social Security number — the identifier that ties the corporation to its federal tax record.

Why a corporation always needs one

Unlike a single-member LLC, which can sometimes use the owner's Social Security number, a corporation is a separate taxpaying entity and needs its own EIN. You'll use it to:

• File the corporation's federal tax returns — a C corporation files its own return; an S corporation files an informational return
• Open a corporate bank account — banks require the EIN, not the owner's SSN
• Hire and pay employees — payroll and employment tax filings run on the EIN
• Make tax elections — including the S corporation election on Form 2553
• Establish credit and apply for licenses in the corporation's name

The EIN keeps the corporation's identity distinct from the owners', which is part of maintaining the separateness that underpins limited liability. Getting it is one of the first things to do after the SCC issues your certificate of incorporation.

Timing matters. You want the corporation to legally exist before you apply, but you also don't want to delay the steps that depend on the EIN.

The right sequence

1. Form the corporation first. File your Articles of Incorporation with the State Corporation Commission and get your certificate of incorporation. The EIN application asks for the entity's legal name and formation details, so the corporation should exist first.
2. Apply for the EIN. Once the corporation is on record, apply — this usually takes minutes and the number is issued immediately online.
3. Then open the bank account and set up payroll. These depend on having the EIN in hand.

Applying before the corporation is formed risks a mismatch between the name on the EIN and the name on your SCC record, which causes headaches later. Form first, then apply.

The IRS offers several ways to apply, and the online method is by far the fastest for most founders.

Online — the fastest route

Apply through the IRS EIN Assistant on IRS.gov. The online application is free, walks you through a short interview about the corporation, and issues the EIN immediately at the end so you can download the confirmation and use the number the same day. The online tool is available during posted hours and must be completed in one session — it doesn't save partway through.

To apply online, the responsible party listed on the application needs a valid US taxpayer ID (a Social Security number or ITIN). The responsible party is the individual who controls or manages the corporation — typically a principal officer.

By fax or mail with Form SS-4

If you can't use the online tool — most commonly because the responsible party doesn't have an SSN or ITIN — you complete IRS Form SS-4 and submit it by fax or mail. Fax responses come back in a few business days; mail takes longer. International applicants without a US taxpayer ID can also apply by phone through the IRS's dedicated line for foreign applicants.

Have this information ready before you start, since the online session doesn't save:

• The corporation's exact legal name as it appears on your certificate of incorporation
• The state of formation (Virginia) and the date the corporation was formed
• The corporation's mailing and physical address
• The responsible party's name and SSN or ITIN
• The reason for applying (started a new business)
• The number of employees you expect and when you'll first pay wages, if any
• The corporation's principal activity and a brief description of what it does

Watch the name match

The single most common EIN problem for corporations is a name mismatch — the name on the EIN doesn't exactly match the name on the SCC record. That mismatch can hold up bank accounts and cause IRS notices. Enter the legal name precisely as it reads on your certificate of incorporation, including the corporate designator.

Once the IRS issues your EIN, a few things follow naturally.

Store the confirmation

Save the EIN confirmation notice (the CP 575 for online applicants) somewhere permanent. Banks, lenders, and future filings may ask for it, and the IRS won't reissue the original notice — you'd have to request a substitute letter.

Use it to operationalize the corporation

• Open the corporate bank account, keeping corporate money strictly separate from personal funds
• Set up payroll if you'll have employees, registering for federal and Virginia employment taxes
• Consider your tax election — by default the corporation is a C corporation; eligible corporations can elect S status with Form 2553, a decision to weigh with a CPA
• Register for Virginia taxes as needed — corporate income tax, and sales and use tax if you sell taxable goods or services

One EIN per corporation

A corporation generally needs only one EIN for its lifetime. You don't get a new one for adding shareholders, changing officers, or moving offices. You'd only need a new EIN in specific situations, such as certain changes in entity type or ownership structure — check the IRS guidance if you're unsure whether a change requires a new number.