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Common EIN Application Mistakes That Delay Approval

Getting an EIN is usually fast and free — until a small mismatch with your formation documents turns it into a weeks-long back-and-forth.

4 min read

Applying for an EIN directly through the IRS is usually quick and free — but a handful of common mistakes turn what should be an instant process into weeks of delay while the IRS resolves a mismatch or missing information.

Applying before formation is complete

Applying for an EIN before your LLC or corporation is officially formed with the state — or using a business name that doesn't exactly match your approved formation documents — is one of the most common reasons an application gets flagged for review.

Responsible party information errors

The application requires identifying a "responsible party" with a valid Social Security Number or ITIN — using outdated information, or an entity instead of an individual where an individual is required, is a frequent source of rejection.

Selecting the wrong entity type

Choosing the wrong classification (for example, selecting corporation when you're actually a single-member LLC) can create tax filing complications down the line that are more difficult to unwind than to get right at application.

Multiple applications for the same business

Submitting more than one EIN application for the same entity — often out of impatience when the first doesn't process instantly — can create duplicate or conflicting records that take longer to sort out than simply waiting for the original application to complete.

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Formation documents, bylaws, and corporate governance drafting.