The EIN Guide for Wisconsin Nonprofits

An Employer Identification Number is a nine-digit number the IRS assigns to identify an organization for federal tax purposes. Think of it as a Social Security number for your nonprofit. Even though the name says "employer," you need an EIN whether or not you ever hire anyone — the name is a leftover from how the number was originally used.

Why a nonprofit can't operate without one

• You can't open a bank account without it. No bank will open an account for a nonprofit corporation using an individual's Social Security number. The EIN is what lets the organization hold money in its own name.
• You need it to apply for 501(c)(3) status. The Form 1023 or 1023-EZ application requires your EIN. You get the EIN first, then apply for exemption.
• You use it on every federal filing. Your annual Form 990 and any employment tax filings all reference the EIN.
• Grantmakers and donors reference it. It's part of your organization's identity in databases and on donation records.

A nonprofit is a separate legal entity from the people who run it. The EIN is what gives it a distinct federal identity, and getting one is among the first things you do after the state creates your corporation.

The sequence here matters more than people expect. Apply for your EIN after your corporation legally exists, not before.

Incorporate first

When you apply for an EIN, the IRS asks for your legal name and formation details. If you apply before filing your Articles of Incorporation with the Wisconsin Department of Financial Institutions, you risk a mismatch between what the IRS has and what the state has — and cleaning that up later is annoying. File your Articles of Incorporation first, confirm the corporation is on the record, then get the EIN.

EIN before bylaws and bank account

The natural order is: incorporate, get the EIN, hold your organizational meeting to adopt bylaws and elect officers, then open the bank account (which requires both the EIN and, usually, the bylaws). Getting the EIN early in that chain unblocks everything downstream.

EIN before the 501(c)(3) application

You cannot file Form 1023 or 1023-EZ without an EIN, so get it well before you're ready to apply for exemption. There's no downside to having the EIN in hand early.

The IRS issues EINs at no cost. Any website charging a fee to "get you an EIN" is selling you something you can do yourself in about ten minutes.

The online application (fastest)

Apply through the IRS EIN Assistant at IRS.gov. The online application is available during posted hours and issues your EIN immediately upon completion — you can download the confirmation letter (CP 575) and start using the number the same day. This is the right method for almost everyone.

What you'll need on hand

• Your legal corporate name exactly as filed with Wisconsin DFI
• Your formation date and state (Wisconsin)
• The type of entity — you'll indicate it's a nonprofit/other nonprofit corporation
• A responsible party with a Social Security number or ITIN (more on this below)
• Your principal address

If you can't apply online

Applicants whose responsible party lacks an SSN or ITIN — for example, some organizations with a non-US founder as responsible party — apply by fax or mail using Form SS-4. This is slower (fax takes a few business days; mail takes weeks), so use the online method whenever eligible.

The IRS requires you to name a "responsible party" on the EIN application, and this is where nonprofits most often stumble.

Who the responsible party is

For a nonprofit, the responsible party is a person who controls or manages the organization — typically a founding director or officer, such as the board chair or treasurer. The IRS wants a real individual, not the organization itself, and that person provides their name and SSN or ITIN. It is not "owning" the nonprofit (nobody owns a nonprofit); it's simply the natural person the IRS will hold accountable as the point of contact.

One EIN, one entity

Apply for exactly one EIN for your nonprofit corporation. Don't apply multiple times if the confirmation is slow — duplicate applications create confusion. If you genuinely need to update the responsible party later (say, the founding officer leaves), you report the change to the IRS using Form 8822-B, not by getting a new EIN.

Keep the confirmation safe

Store your EIN confirmation letter (CP 575) somewhere your board can find it — it's the document banks and grantmakers occasionally ask to see, and the IRS doesn't reissue the original. A digital copy in your shared organizational records is wise, since nonprofits lose institutional memory when volunteers rotate.

This is the single most important thing to understand, because the confusion is so common it deserves its own section.

Two completely different things

Getting an EIN does not make your organization tax-exempt. An EIN is just an identifier — every business, taxable or not, has one. Tax-exempt status under 501(c)(3) is a separate determination you apply for with the IRS using Form 1023 or 1023-EZ, and it results in a determination letter, which is an entirely different document from your EIN confirmation.

The order of operations

• Incorporate with Wisconsin DFI → you have a corporation
• Get an EIN from the IRS → you have a federal tax ID
• Apply for and receive 501(c)(3) from the IRS → you have tax-exempt status

Having an EIN is a prerequisite for that third step, not a substitute for it. Until you have the determination letter, your organization is a nonprofit corporation with a tax ID — but donations to it aren't yet confirmed tax-deductible, and you can't tell funders you're a recognized 501(c)(3). The bylaws and 501(c)(3) page covers the exemption application itself.