How to Obtain a Tax ID for a Nonprofit

If your company qualifies as a nonprofit organization, it is entitled to tax exemptions at the state and federal levels. However, you must have a federal tax identification number if you will hire employees and collect tax for goods or services sold. This number is also required on any government form you might have to complete for your organization. Obtaining a number is the same process for all organizations regardless of their status.

1. Check your company's status with your state. If you are not registered as a nonprofit entity, file articles of incorporation with your state's corporate filing office and indicate that the company is a nonprofit organization. You can contact an attorney for help in completing the form accurately.
2. Register for tax-exempt status with the Internal Revenue Service. Your nonprofit status is recognized at the state level only, but a tax-exempt status with the IRS makes your entity exempt from federal income taxes. You must meet several requirements to qualify. If your organization is eligible, submit IRS Form 1023, Application for Recognition of Exemption, to the IRS.
3. Apply for an employer identification number with the Internal Revenue Service. You may apply online, by phone, fax or mail. If you apply via fax or mail, complete form SS-4 first. The service is free.
4. Wait to receive your tax ID number. If you applied for the number online or over the phone, you would receive it instantly. It takes up to four business days to receive an EIN if you apply via fax and up to four weeks if you apply by mail.