The tax identification number for a partnership is an Employer Identification Number, or EIN, issued by the IRS. Every partnership needs one, whether or not it has employees, because the EIN is how the IRS tracks the partnership’s income and each partner’s share of it. Applying is free and, done online, takes only a few minutes. A partnership cannot substitute a partner’s Social Security Number or ITIN for the entity’s EIN when filing returns or dealing with the IRS, and this holds for general partnerships, limited partnerships, limited liability partnerships, and LLCs that elect partnership taxation.
What You Need Before You Apply
The IRS collects EIN information on Form SS-4 (Application for Employer Identification Number). The same core details apply whether you file online or on paper.1Internal Revenue Service. Instructions for Form SS-4 – Application for Employer Identification Number
Have the partnership’s legal name, mailing address, and entity classification ready. For a partnership the relevant SS-4 choices are general partnership, limited partnership, or LLC. If you’re applying for an LLC taxed as a partnership, you’ll also give the number of members. The form asks for the partnership’s start date, the closing month of its accounting year, the maximum number of employees you expect to hire in the next 12 months (zero is a valid answer), and a short description of your principal business activity.
The Responsible Party
Every application must name one individual as the “responsible party.” The IRS defines this as the person who ultimately owns or controls the entity, or who exercises ultimate effective control over its funds and assets. For a partnership, that’s typically a general partner.2Internal Revenue Service. Instructions for Form SS-4 – Responsible Party Defined The responsible party must be an individual, not another entity, and you’ll list that person’s name along with a valid personal TIN — an SSN, ITIN, or EIN.1Internal Revenue Service. Instructions for Form SS-4 – Application for Employer Identification Number
How to Apply
There is no fee for an EIN, no matter which method you use.3Internal Revenue Service. Get an Employer Identification Number Speed is the main difference between the options.
- Online. The fastest route. The IRS validates the application in real time and issues the EIN immediately on approval. The tool is available Monday through Friday, 6:00 a.m. to 1:00 a.m. Eastern. Your principal place of business must be in the United States or a U.S. territory.3Internal Revenue Service. Get an Employer Identification Number
- Fax. Fax a completed paper SS-4. If you include a return fax number, expect the EIN back within four business days.4Taxpayer Advocate Service. Getting an EIN
- Mail. The slowest option, at about four weeks of processing time.4Taxpayer Advocate Service. Getting an EIN
- Phone (international applicants only). If the partnership has no legal residence or principal place of business in the U.S. or its territories, call 267-941-1099 (not toll-free), Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern. The caller must be authorized to receive the EIN and answer questions about the application.5Internal Revenue Service. Instructions for Form SS-4 – Apply by Telephone
One limit applies across every method: the IRS issues only one EIN per responsible party per business day. If the same person is forming several entities, space out the applications.1Internal Revenue Service. Instructions for Form SS-4 – Application for Employer Identification Number
How a Partnership Uses Its EIN
The EIN goes on every Form 1065 (U.S. Return of Partnership Income) the partnership files. Form 1065 is an information return reporting the partnership’s total income, deductions, gains, and losses. The partnership itself pays no federal income tax at the entity level; profits and losses pass through to the individual partners.6Internal Revenue Service. About Form 1065, U.S. Return of Partnership Income
Alongside Form 1065, the partnership prepares a Schedule K-1 for each partner showing that partner’s allocated share of income, deductions, and credits. Each K-1 carries the partnership’s EIN and the partner’s own TIN so the IRS can match what the partnership reports to what each partner reports on a personal return.
When a Partnership Needs a New EIN
Most changes don’t require a new number, but a few structural shifts do. A new EIN is needed if you incorporate the partnership, if the partnership ends because one partner buys out the others and continues as a sole proprietorship, or if you dissolve the existing partnership and form a new one.7Internal Revenue Service. Do You Need a New Employer Identification Number?
You keep the same EIN when the partnership changes its name, declares bankruptcy, changes or adds locations, or sees more than 50% of ownership change hands within 12 months.7Internal Revenue Service. Do You Need a New Employer Identification Number? Even a complete turnover of partners doesn’t trigger a new EIN as long as the partnership entity itself continues rather than formally dissolving and re-forming.
Updating or Recovering Your EIN
When the responsible party changes, the IRS requires the partnership to report the change within 60 days on Form 8822-B (Change of Address or Responsible Party).8Internal Revenue Service. About Form 8822-B, Change of Address or Responsible Party – Business Skipping this leaves the wrong person listed as authorized to act for the entity.
If you lose the original EIN confirmation notice or need to verify the number, call the IRS business and specialty tax line and request a Letter 147C, which confirms the EIN previously assigned to your partnership.9Internal Revenue Service. Employer Identification Number Banks and lenders sometimes ask for the 147C during due diligence, so keep the original assignment notice somewhere you can find it.