How to Get an EIN in South Dakota

How to Get an EIN in South Dakota

How to Get an EIN in South Dakota

An Employer Identification Number (EIN) is a nine-digit identifier the IRS assigns to your business. In South Dakota, you will need one if you have employees, operate as a partnership or corporation, or file certain tax returns. Getting one is free and often faster than you might expect. This guide walks you through exactly how to apply, what to prepare, and what happens next.

Do You Need an EIN in South Dakota?

Not every business needs an EIN right away. Here is when you must have one:

  • You have employees (even one part-time worker)
  • You formed an LLC with multiple members
  • You operate as a partnership, S corporation, or C corporation
  • You file any of these tax returns: employment, excise, alcohol, tobacco, or firearms
  • Your business has a Keogh plan or a trust

Sole proprietors without employees can often use their Social Security Number instead. However, getting an EIN offers privacy (you share your SSN with fewer vendors and agencies) and is still recommended for most businesses. A sole proprietor who later hires staff will need to apply for one anyway.

South Dakota imposes no corporate income tax, no personal income tax, and no LLC franchise tax, which streamlines your compliance burden. However, you still need an EIN if your business structure or employee count triggers IRS requirements.

What You Will Need Before Applying

Gather these materials before you start your application:

  • Your Social Security Number or ITIN for the person applying (the principal officer, owner, or partner)
  • Your business legal name exactly as it appears on your formation documents
  • Your business mailing address (the street address where you receive mail, not a PO box)
  • Your business physical address if different from the mailing address
  • Your business structure (sole proprietorship, partnership, LLC, corporation, trust, etc.)
  • Your primary business activity (describe what your business does, e.g., "retail clothing sales," "consulting services")
  • Your business start date or the date you expect to begin operations
  • Your South Dakota business name if you filed a DBA (Fictitious Business Name). You can search the South Dakota Secretary of State business database to confirm your name is registered
  • Information about responsible parties if the business is a corporation, partnership, or LLC (names, titles, and ownership percentages for all owners)

If you have not yet registered your business name with the South Dakota Secretary of State, do that first. You can file a DBA (Fictitious Business Name) for $10 at the South Dakota Secretary of State online portal, valid for five years. This ensures your name is legally protected in the state before you apply for your EIN.

Step-by-Step: How to Apply for an EIN

Option 1: Apply Online (Fastest Method)

The IRS lets you apply online at no cost using Form SS-4. This is the fastest option and you get your EIN immediately upon approval, usually within minutes.

  1. Go to the IRS website. Visit IRS.gov/ein and click "Apply for an EIN Online." You do not need to create an account.
  2. Select your entity type. Choose from the dropdown menu (sole proprietor, partnership, corporation, LLC, trust, etc.). Be precise, as this affects your tax obligations.
  3. Enter your legal business name. Type it exactly as it appears on your LLC Articles of Organization, Articles of Incorporation, or business registration. Do not abbreviate or use a nickname.
  4. Provide your mailing and physical addresses. Street addresses only, no PO boxes for physical location. If your business operates from your home, use your home address.
  5. Select your business activity. Pick from the IRS list or type a description of your primary business. The IRS uses this for industry classification.
  6. Enter your responsible party information. This is the principal officer or owner applying on behalf of the business. You will need your SSN or ITIN.
  7. Review your entries. The system will display a summary. Confirm every detail matches your business formation documents before submitting.
  8. Submit and receive your EIN. Upon approval, the system displays your nine-digit EIN on screen. Write it down immediately or print the confirmation page. You can also set up a free IRS online account (ITIN.IRS.gov) to retrieve it later if you lose the confirmation.

Typical time: 15 to 30 minutes from start to finish. You can apply Monday through Friday, 7 a.m. to 10 p.m. Eastern Time.

Option 2: Apply by Phone

If you prefer talking to a person or have questions, call the IRS Business and Specialty Tax Line.

  1. Call 1-800-829-4933. Have all your information (from the materials list above) ready before calling.
  2. Speak with an IRS representative. They will ask the same questions as the online form and help you complete the application verbally.
  3. Receive your EIN over the phone. The agent will provide your number and may email a confirmation letter to you. Ask them to repeat it slowly so you can write it down correctly.
  4. Request a confirmation letter. You can ask the IRS to mail or email Form SS-4 with your new EIN for your records.

Typical time: 20 to 40 minutes. Call during business hours, Monday to Friday, 7 a.m. to 10 p.m. Eastern Time. Wait times increase toward the end of the week and during tax season (January through April).

Option 3: Fax Your Application

You can fax a completed Form SS-4 to the IRS. This method takes longer but works if you need a paper trail.

  1. Download Form SS-4 from IRS.gov or call 1-800-829-3676 to request it by mail.
  2. Complete the form in full. Every blank must be filled in or marked "N/A." Follow the form instructions on the IRS website.
  3. Fax to the appropriate IRS office. The fax number depends on where you live. South Dakota faxes go to the IRS at 1-303-446-1954. Confirm the correct number on the form instructions before faxing.
  4. Keep your fax confirmation receipt. This proves you submitted your application.
  5. Wait for your EIN by mail. Processing takes 4 to 8 business days. The IRS will send a confirmation letter with your number.

Typical time: 4 to 8 business days after the IRS receives your fax. If you do not receive an EIN within this timeframe, call the IRS to check the status.

Option 4: Mail Your Application

You can mail a completed Form SS-4 to the IRS. This is the slowest option but guarantees a record.

  1. Complete Form SS-4 in full, following all instructions on the IRS website.
  2. Mail to the IRS. For South Dakota, send to:

    Internal Revenue Service
    EIN Operation
    Attn: EIN
    1000 Locust Street
    Des Moines, IA 50309
  3. Use certified mail with return receipt. This costs a few extra dollars but confirms the IRS received your application.
  4. Wait 4 to 8 weeks. Mail processing is slower than other methods. The IRS will send your EIN by mail.

Typical time: 4 to 8 weeks, or longer during peak tax season. Only use this method if you cannot apply online or by phone.

Processing Times and Confirmation

Your EIN is issued the moment the IRS approves your application. Here is what to expect:

Application Method Processing Time Confirmation Format
Online Immediate (minutes) On-screen + downloadable confirmation
Phone Same day (over the phone) Verbal + optional email confirmation
Fax 4 to 8 business days Mail confirmation letter
Mail 4 to 8 weeks Mail confirmation letter

Once approved, your EIN is active immediately. You can use it to open a business bank account, file tax returns, and hire employees. The IRS sends a formal confirmation letter (Form SS-4) after approval, even if you applied online. It arrives within 1 to 2 weeks by mail.

Never wait for a physical confirmation letter to start using your EIN. Many banks and vendors accept the on-screen confirmation or the number itself. Write down your EIN in a safe place (a password manager, your business file, or a backup email) as soon as you receive it.

Tips and Common Mistakes to Avoid

Do This

  • Apply online if possible. It is free, instant, and requires no paperwork. There is no reason to use slower methods unless you cannot access the internet.
  • Double-check your business name. It must match your state registration exactly. A typo can delay your application or cause confusion later.
  • Use a street address, not a PO box. The IRS rejects applications with PO boxes for the physical location. Your mailing address can be a PO box if needed, but the physical address must be a real street location.
  • Save your confirmation immediately. Screenshot the on-screen EIN or print the confirmation page. Email it to yourself as backup.
  • Have all information ready before calling. If you apply by phone, you will move faster with your details in front of you.
  • Register your business name with South Dakota first. File your LLC, corporation, or DBA before applying for an EIN. The IRS will cross-reference it.

Avoid These Mistakes

  • Do not abbreviate your business name. "ABC Corp" on your EIN application and "American Business Corp" on your LLC papers creates a mismatch.
  • Do not list your home address if you have a commercial location. Use the actual address where your business operates.
  • Do not apply twice. If your first application was approved, applying again creates duplicate EINs. Contact the IRS if you lose your number instead of reapplying.
  • Do not assume you do not need one. Even sole proprietors who later hire staff need an EIN. It is better to apply early than scramble later.
  • Do not use an EIN before it is fully issued. Wait for IRS confirmation (on-screen or by phone) before using it with banks, vendors, or tax documents. Do not use a number you "plan to get soon."
  • Do not ignore the confirmation letter. When it arrives by mail, verify it matches your application. Report any errors to the IRS immediately.

After You Get Your EIN: Next Steps

Your EIN is only one piece of business setup. In South Dakota, here is what comes next:

1. Open a business bank account. Use your EIN to open a dedicated account for your business. Most banks require your EIN, business formation documents (Articles of Organization or Incorporation), and a government ID.

2. Set up payroll if you have employees. If you hired staff, register with the South Dakota Department of Labor and Regulation to handle payroll tax withholding. Your EIN is required.

3. File a sales tax license (if needed). If your business sells taxable products or services, you need a sales tax license from the South Dakota Department of Revenue. South Dakota charges a 4.2% base sales tax. Register at the South Dakota tax portal (no application fee).

4. Understand South Dakota tax requirements. South Dakota has no corporate income tax and no personal income tax, which simplifies your compliance. However, you still owe sales tax on retail sales and federal income tax on business profits. Consult a qualified CPA to understand your specific obligations.

5. Keep your EIN safe. Treat your EIN like a sensitive number. Use it only on official documents and tax forms. Do not post it on your website or social media.

Disclaimer

This article is informational only and is not legal, tax, or accounting advice. EIN requirements and application processes can vary based on your business structure, industry, and specific circumstances. Before applying, consult a qualified business attorney or CPA to confirm you need an EIN and to understand your full tax and compliance obligations in South Dakota. The IRS website and the South Dakota Department of Revenue website are authoritative sources for current rules and requirements.

For official EIN guidance, visit the IRS EIN page or call 1-800-829-4933. For South Dakota-specific business requirements, visit the South Dakota Secretary of State or the South Dakota Department of Revenue.