Getting an EIN for a Virginia Nonprofit

An Employer Identification Number (EIN) is a nine-digit number the IRS assigns to identify your organization for federal tax purposes — the business world's equivalent of a Social Security number. Despite the word "employer" in the name, you need one whether or not you ever hire anyone.

For a Virginia nonprofit, the EIN is foundational. You'll need it to:

• Open a bank account — no bank will open an account for the organization without one.
• Apply for 501(c)(3) status — the IRS exemption application requires your EIN, so you get the EIN first.
• File your Form 990 series return each year.
• Register with OCRP to solicit donations, and to apply for a Virginia sales-tax exemption.
• Hire employees or engage contractors, if you ever do.

In short, almost every step after forming the corporation — banking, exemption, fundraising registration, tax filings — asks for the EIN. It's the hinge between "the corporation exists" and "the organization can actually operate."

Timing matters. Get the EIN after the SCC forms your corporation, and before you apply for 501(c)(3) status or open a bank account.

Why order matters

You want the corporation to legally exist first, because the EIN is tied to the entity. Applying for an EIN before the entity is formed puts the number ahead of the corporation it's supposed to identify, which creates avoidable confusion. Once the SCC has processed your Articles of Incorporation — often the same day for an online filing — you can apply for the EIN immediately.

From there, the EIN unlocks the next steps: it's required on the 501(c)(3) application, so you get it before you file Form 1023 or 1023-EZ, and every bank will ask for it before opening the organization's account. Slotting the EIN right after formation keeps the whole sequence moving.

The most important thing to know: an EIN is completely free from the IRS. Apply directly and you pay nothing. Be skeptical of any website that charges a fee just to "get you an EIN" — that's a markup on something the government provides at no cost.

The online application

Your quickest option is to file through the IRS EIN Assistant at IRS.gov. The application:

• Takes about ten minutes to complete
• Issues the EIN immediately at the end — you can download the confirmation and use the number the same day
• Is available during the IRS's posted online hours
• Requires a responsible party with a valid U.S. Social Security number or ITIN to complete online

If you can't apply online

If the responsible party doesn't have an SSN or ITIN, or you can't use the online tool, you apply using Form SS-4 by fax or mail. This takes longer — days to weeks depending on method — so plan ahead if the online route isn't available to you.

The EIN application asks a few questions where nonprofits should answer differently than a for-profit business would. Getting these right avoids confusion later.

Entity type

When the application asks about the type of entity, choose the option that reflects a nonprofit / tax-exempt organization (rather than a corporation formed to make a profit, an LLC, or a partnership). The form's language guides you to the nonprofit choice; select it so the IRS's records reflect what the organization actually is.

The responsible party

The IRS requires a responsible party — typically a principal officer or director of the nonprofit, a real individual (not the entity itself) who controls or manages the organization. Use an actual person's name and their SSN or ITIN. The responsible party is an identification requirement, not a statement of ownership — remember, a nonprofit has no owners.

Reason for applying and dates

You'll indicate why you're applying (starting a new organization) and provide the date the corporation was formed and its accounting/fiscal year. Keep these consistent with your Articles of Incorporation and your intended fiscal year, since the fiscal year drives your future Form 990 deadline.

The EIN itself is permanent, but there are a few things to do once you have it — and a few things not to confuse it with.

Store the confirmation safely

When the IRS issues the EIN, you get a confirmation notice (the CP 575 for online applications). Save it in your corporate records alongside your Articles of Incorporation and, later, your IRS determination letter. Banks and grantmakers sometimes ask to see it. If you ever lose the number, the IRS can help you retrieve it, but keeping the confirmation avoids the hassle.

The EIN is not your tax exemption

A crucial distinction: having an EIN does not mean you're tax-exempt. The EIN just identifies the organization; tax-exempt status is a separate determination you get by applying to the IRS on Form 1023 or 1023-EZ. Plenty of founders get the EIN and mistakenly think they've "become a 501(c)(3)." You haven't — the EIN is a prerequisite step, not the exemption itself.

One EIN per organization

You get one EIN for the organization and keep it for the life of the nonprofit. Don't apply for a second one. If information changes — the responsible party, the address, the name — you update the IRS's records rather than getting a new number. The EIN stays with the corporation from formation through, eventually, its final Form 990 at dissolution.