How to Get an EIN in Minnesota

An Employer Identification Number (EIN) is a nine-digit federal tax ID issued by the IRS. In Minnesota, nearly every business structure needs one, whether you're filing taxes as a partnership, corporation, LLC, or sole proprietor with employees. Getting your EIN is typically free and fast, but knowing the exact steps, requirements, and common pitfalls saves time and prevents costly mistakes later.

What Is an EIN and Why Minnesota Businesses Need One

An EIN is your business's federal tax identifier. The IRS uses it to track your business income, employment taxes, and filing obligations. Think of it as your business's Social Security Number.

In Minnesota specifically, you'll need an EIN if you plan to:

• Hire employees (mandatory if you have any W-2 employees)
• File a business tax return as a partnership, S corporation, or C corporation
• Operate as an LLC taxed as a corporation or partnership
• Open a business bank account (most Minnesota banks require an EIN)
• Register for Minnesota sales tax (linked to your federal EIN)
• File excise taxes or employment taxes with Minnesota Department of Revenue

Sole proprietors without employees technically may use their Social Security Number instead, but getting an EIN is still recommended for privacy, since it keeps your Social Security number off forms.

What You'll Need Before Applying for an EIN

Gather these materials before starting your application. You won't need to upload documents to the IRS, but having them ready prevents delays.

• Legal business name as registered with the Minnesota Secretary of State (if you've filed Articles of Organization or Incorporation)
• Principal business address in Minnesota or where you'll operate
• Mailing address (can differ from principal address)
• Type of business entity (sole proprietorship, LLC, S corp, C corp, partnership, nonprofit, etc.)
• Reason for applying (new business, hiring employees, changing structure, etc.)
• First and last name of business owner or responsible party
• Social Security Number or ITIN of the owner or responsible party (the person who will sign tax documents)
• Responsible party title (owner, manager, officer, etc.)
• Date you expect to start payroll (if you're hiring)
• Your Minnesota business structure (e.g., LLC with Articles of Organization filed, C corporation with Articles of Incorporation)

If you've already filed with Minnesota Secretary of State, have your Articles of Organization or Incorporation confirmation ready. If not, you may want to file your business structure first and then apply for the EIN.

Step-by-Step: How to Get an EIN in Minnesota

Step 1: Choose Your Application Method

The IRS offers several ways to apply for an EIN, each with different processing times:

• Online (IRS.gov) - The IRS issues your EIN immediately if the application is approved. You must finish in one session (it expires after 15 minutes of inactivity), and the tool is not available around the clock, so check the IRS page for current hours. This is the fastest option. Visit the IRS EIN application portal at www.irs.gov/ein.
• Phone - Only international applicants can receive an EIN by telephone. The IRS no longer issues EINs by phone to domestic applicants.
• Mail (Form SS-4) - The IRS says to allow at least 4 to 5 weeks. Only use this if you cannot apply online. Mail the form to the IRS address provided on the form.
• Fax - Under the IRS Fax-TIN program you generally receive your EIN by fax within 4 business days. Complete Form SS-4 and fax it to the number listed in the IRS instructions.

For Minnesota businesses, online is strongly recommended. It's instant, secure, and requires no follow-up.

Step 2: Visit the IRS EIN Application Portal

Go to www.irs.gov/ein and click "Apply Online." You'll be directed to the IRS's secure application system. Bookmark this page for your records.

Step 3: Confirm You're Eligible to Apply Online

The IRS online tool is for applicants who meet these conditions:

• Your principal place of business is in the U.S. or a U.S. territory (true for Minnesota businesses).
• You have the Social Security number or ITIN of the responsible party.
• You are the responsible party in control of the entity, or its authorized representative.

Minnesota businesses typically pass all eligibility checks for online application.

Step 4: Enter Your Business Information

Fill in the following fields on the online form:

• Legal business name - Must match your Minnesota Secretary of State filing exactly (if you have one). If you haven't filed yet, use your intended legal name.
• Doing Business As (DBA) - Only fill this if you operate under an assumed name (like a DBA or trade name). If you haven't filed a DBA certificate with Minnesota Secretary of State, leave this blank for now.
• Business address - Your Minnesota street address (not a P.O. Box).
• Mailing address - Where the IRS will send mail. Can be different from business address.
• County - The Minnesota county where your principal business is located.

Step 5: Select Your Business Entity Type

Choose the entity type that matches your business. The exact wording and follow-up questions on the IRS screens can differ from this list:

• Sole Proprietor
• Partnership
• Corporation (C corporation)
• S Corporation
• LLC - Classified as partnership
• LLC - Classified as C corporation
• LLC - Classified as S corporation
• Nonprofit
• Trust or estate
• Other (for special entity types)

For an LLC, the IRS asks how many members it has and how it is taxed (as a partnership, a corporation, or a disregarded entity). If you're unsure which to choose, consult a Minnesota accountant or your business attorney.

Step 6: Enter Owner and Responsible Party Information

Provide the name, address, and Social Security Number of the owner or the person responsible for the business. This person will sign all tax documents filed with the IRS. For multi-member LLCs, choose one member as the responsible party.

Step 7: Describe Your Business Activities

Select your primary industry category and enter a brief description of what your Minnesota business does. For example: "Accounting services," "Retail clothing store," or "Software development." Answer as accurately as you can, and check the IRS instructions if you are unsure which category fits.

Step 8: Provide Employment Information

The IRS asks about employees. Expect questions such as:

• Whether you expect to have employees
• How many employees you expect, by type (agricultural, household or other)
• The date you expect to first pay wages

If you're planning to hire in Minnesota, indicate your expected payroll start date. This helps the IRS determine which employment tax forms to send you.

Step 9: Review and Confirm Your Information

Double-check every field for accuracy, especially your business name (must match Minnesota filings), address, and the responsible party's Social Security Number. Mistakes can delay processing or cause your EIN to be issued under the wrong name.

Step 10: Submit and Receive Your EIN

Click Submit. If everything passes validation, the IRS will immediately display your new EIN on screen. Copy it, screenshot it, and save it to your records. Print or save your EIN confirmation letter for your records.

Processing Times: What to Expect

Online application: Instant (you receive your EIN immediately upon submission).

Phone application: not available to domestic applicants (international applicants only).

Mail application: the IRS says to allow at least 4 to 5 weeks.

Fax application: generally within 4 business days.

Once you have your EIN, you can use it to register for Minnesota taxes and to apply for a business bank account, though individual banks set their own documentation requirements.

EIN vs. Minnesota Tax ID: What's the Difference?

Your EIN is federal. Minnesota also requires you to register separately for state taxes. Here's how they differ:

EIN (Federal) - Issued by the IRS, used for federal income tax, payroll, and employment taxes. Required for most business structures.

Minnesota Sales Tax Permit - Issued by the Minnesota Department of Revenue, required if you sell taxable goods or services in Minnesota. Applied for separately at mndor.state.mn.us.

Minnesota Tax ID (Business Registration) - When you register with the Minnesota Department of Revenue for income tax withholding or sales tax, the state assigns you a seven-digit Minnesota tax ID. Unemployment insurance is registered separately with the Department of Employment and Economic Development. This is separate from your EIN but often linked to it in state records.

Pro tip: Get your EIN first, then use it when registering with Minnesota Department of Revenue. This keeps your federal and state tax accounts coordinated.

Tips to Avoid Common Mistakes

Don't use a P.O. Box for your business address. The IRS requires a physical street address. If you're using a mail forwarding service in Minnesota, use the actual street address of the forwarding service, not the P.O. Box number.

Don't let the legal name mismatch. Your EIN application must use the exact legal business name you registered with the Minnesota Secretary of State (or plan to register). Any variation will cause problems when filing taxes or opening accounts.

Don't forget to file Minnesota business documents first (optional but recommended). While you can get an EIN before filing your LLC Articles of Organization or Articles of Incorporation with Minnesota, many accountants recommend filing first, then applying for the EIN with your confirmed registered name and address.

Don't apply twice. If you receive an EIN, don't submit another application for the same business. The IRS will see it as a duplicate. If you applied by mail and haven't received your EIN after the 4 to 5 weeks the IRS suggests allowing, contact the IRS before reapplying.

Don't delay registering for Minnesota sales tax if you need it. Your EIN alone doesn't register you for sales tax. Even though many people assume they're linked, you must separately apply for a Minnesota Sales Tax Permit at the Department of Revenue website if you sell taxable goods or services.

Don't provide incorrect income information. The IRS will ask for estimated gross receipts. Be reasonable and honest. Inflated estimates can trigger audits, and extremely low estimates for a supposedly active business can also raise red flags.

Expected Results After Receiving Your EIN

Once you have your EIN, you can expect to:

• Open a business bank account at Minnesota banks (most require an EIN)
• Register for Minnesota sales tax if applicable
• Set up payroll with an ADP, Gusto, or similar service
• File federal tax returns under that EIN starting in the year you receive it
• Withhold and deposit payroll taxes if you hire employees
• Report income on federal business tax returns (Form 1120, 1120-S, 1065, Schedule C, etc., depending on structure)

Your EIN stays with your business for its entire life. You use the same EIN year after year. If you change your business structure (e.g., converting from LLC to S corporation), you may need to apply for a new EIN, so consult your accountant.

Next Steps After Getting Your EIN

After you receive your EIN, your immediate next steps should be:

1. Register with the Minnesota Department of Revenue if you have employees, sell taxable goods, or are required to file state income tax returns. Do this at mndor.state.mn.us.
2. Open a business bank account in Minnesota. Bring your EIN, Articles of Organization or Incorporation (if you have them), and a government-issued ID.
3. Set up payroll if you're hiring. You'll need your EIN to enroll in the IRS e-services portal and set up federal payroll tax deposits.
4. File your Minnesota Articles of Organization or Incorporation with the Minnesota Secretary of State if you haven't already (separate from your EIN application).
5. Get business insurance if needed. Most insurers will ask for your EIN.
6. Obtain any licenses or permits required for your specific industry in Minnesota.

Disclaimer

This article provides general information about the EIN application process for Minnesota businesses and is not legal or tax advice. Business tax requirements vary based on your specific entity structure, income level, industry, and employment status. Before applying for an EIN or registering your Minnesota business, consult with a qualified CPA, tax attorney, or business advisor in Minnesota who understands your situation. The IRS website at www.irs.gov and the Minnesota Department of Revenue at www.revenue.state.mn.us offer free resources and contacts for state-specific questions.