S-Corporations
EIN for S-Corp: How to Apply After S-Corp Election (2026)
S-Corps use the same EIN as the original entity. You do not need a new EIN after filing Form 2553. Learn how the EIN works with S-Corp election, when you do need a new one, and eligibility requirements.
You do not need a new EIN when you elect S-Corp status. Filing Form 2553 changes your tax classification, not your entity. Your corporation or LLC keeps the same EIN it received when it was first formed. Every S-Corp does need an EIN -- but you get it when the entity is created, not when you make the S-Corp election. If you are forming a new entity that will elect S-Corp status, apply for the EIN as a corporation or LLC first, then file Form 2553 separately.
The relationship between EINs and S-Corp elections causes significant confusion. Business owners frequently search for "EIN for S-Corp" expecting a special application process. There is none. The S-Corp election is a tax classification choice made on Form 2553 -- it is separate from the EIN application. This guide clears up the confusion and explains exactly how EINs work with S-Corp status.
For the corporation EIN application process, see our EIN for corporation guide. For a broader overview, see who needs an EIN.
Core Rule
Why Doesn't S-Corp Election Require a New EIN?
The IRS assigns EINs to entities, not to tax classifications. 5 million S-Corps filed Form 1120-S in 2024 using the same EIN they received at entity formation. When you file Form 2553, you are changing how the IRS taxes your entity -- you are not creating a new entity. The corporation or LLC that received the original EIN continues to exist. Only the tax treatment changes.
EIN Stays the Same Through Tax Elections
Think of it this way: your EIN is your entity's Social Security number. When a person gets married and changes their tax filing status from single to married filing jointly, they do not get a new SSN. Similarly, when your corporation changes from C-Corp taxation to S-Corp taxation, it does not get a new EIN.
The IRS processes the S-Corp election internally. After accepting your Form 2553, the IRS updates your entity's tax account to reflect the new classification. Your EIN stays the same. Your bank accounts, contracts, and vendor relationships are unaffected. The only visible change is the tax return form: you file Form 1120-S (S-Corp return) instead of Form 1120 (C-Corp return).
For S-Corp election details, see our S-Corp election guide.
New Entities
How Do You Get an EIN for a New Entity Electing S-Corp?
If you are forming a brand-new corporation or LLC that you intend to elect S-Corp status for, follow these two separate steps in order:
Step 1: Apply for an EIN
Apply for an EIN using Form SS-4. Select the entity type that matches your legal structure:
- If you formed a corporation, select "Corporation"
- If you formed an LLC, select "LLC"
Do not select "S-Corp" as the entity type on the EIN application. The IRS EIN Assistant does offer an S-Corp option, but this is only for entities that have already received their S-Corp election approval. For a new entity, select Corporation or LLC.
Step 2: File Form 2553
After receiving your EIN, file Form 2553 (Election by a Small Business Corporation) with the IRS. This form requires:
- The entity's EIN (from Step 1)
- The entity's legal name and address
- The effective date of the S-Corp election
- Signatures of all shareholders consenting to the election
File Form 2553 by the 15th day of the third month of the tax year (March 15 for calendar-year entities). You can also file during the preceding tax year.
US residents apply for the EIN online at irs.gov. Non-US residents apply by fax using Form SS-4. ein.so handles fax applications for $49 (Standard) or $97 (Express). Start your application.
Eligibility
Who Is Eligible for S-Corp Election?
5 strict requirements must all be met for S-Corp eligibility. The IRS rejects Form 2553 if any single requirement is violated. Non-US residents are ineligible because only US citizens and residents can be S-Corp shareholders.
S-Corp vs C-Corp: Which Is Right for You?
| Factor | S-Corp | C-Corp |
|---|---|---|
| Taxation | Pass-through (no double tax) | Double taxation (21% corporate + personal) |
| Non-Resident Shareholders | Not allowed | Allowed |
| Max Shareholders | 100 | Unlimited |
| Stock Classes | 1 class only | Multiple classes allowed |
| SE Tax Savings | Yes (distributions exempt) | No (dividends taxed differently) |
| New EIN Needed? | No (keep original) | N/A (default status) |
5 S-Corp Eligibility Requirements
Domestic Entity
The entity must be formed in the United States. Foreign corporations cannot elect S-Corp status.
Eligible Shareholders Only
Shareholders must be US citizens or US residents (green card holders or individuals meeting the substantial presence test). Non-resident aliens, corporations, and partnerships cannot be S-Corp shareholders. Certain trusts and estates can qualify.
100 or Fewer Shareholders
S-Corps cannot have more than 100 shareholders. Family members can be treated as a single shareholder for this limit.
One Class of Stock
S-Corps can have only one class of stock. All shares must have identical rights to distributions and liquidation proceeds. Voting and non-voting shares are permitted as long as economic rights are equal.
Not an Ineligible Corporation
Certain corporations cannot elect S-Corp status: insurance companies, domestic international sales corporations (DISCs), and certain financial institutions.
If you are a non-US resident, you cannot be an S-Corp shareholder. Consider a C-Corp instead -- see our EIN for corporation guide for the application process.
Tax Advantages
Why Do Business Owners Elect S-Corp Status?
S-Corp election saves the average profitable business $8,000-$20,000 per year in self-employment taxes. It eliminates the double taxation that C-Corps face. With a C-Corp, the corporation pays tax on its income (21% federal rate), and shareholders pay tax again when they receive dividends. S-Corps avoid this by passing income directly to shareholders, who report it on their personal tax returns.
S-Corp Self-Employment Tax Savings Example
| Factor | LLC (No S-Corp Election) | LLC with S-Corp Election |
|---|---|---|
| Net Profit | $150,000 | $150,000 |
| Reasonable Salary | N/A (all income subject to SE tax) | $70,000 |
| Profit Distribution | N/A | $80,000 (no SE tax) |
| Self-Employment Tax (15.3%) | $21,194 | $10,710 (on salary only) |
| Annual Tax Savings | -- | $10,484 |
The second major advantage is self-employment tax savings. S-Corp shareholder-employees pay themselves a "reasonable salary," which is subject to payroll taxes (Social Security and Medicare, totaling 15.3%). Profit distributions above the reasonable salary are not subject to self-employment tax. This can save thousands of dollars annually for profitable businesses.
Example: An LLC owner earning $150,000 in profit pays self-employment tax on the entire amount. If the same LLC elects S-Corp status and the owner pays themselves a $70,000 salary, only the $70,000 is subject to payroll tax. The remaining $80,000 is distributed as profit, saving about $12,000 in self-employment taxes annually.
The S-Corp election does not change the entity's EIN. It simply changes how the entity is taxed. The entity continues using the same EIN for all tax filings, bank accounts, and business operations. For more details on the S-Corp election process, see our S-Corp election guide.
Exceptions
When Does an S-Corp Actually Need a New EIN?
While S-Corp election does not trigger a new EIN requirement, certain structural changes do. Here are the situations where an S-Corp needs a new EIN:
The S-Corp is dissolved and a new entity is formed. If you close the S-Corp and start a completely new corporation, the new entity needs its own EIN. The old S-Corp's EIN stays with the dissolved entity permanently.
The S-Corp converts to a partnership or sole proprietorship. If the entity fundamentally changes its legal structure (not just its tax election), a new EIN is required. This is rare but can happen during business restructuring.
You do NOT need a new EIN when: you change the company name, change the company address, change the responsible party (file Form 8822-B instead), add or remove shareholders, or lose S-Corp status and revert to C-Corp taxation. In all of these cases, the original EIN remains valid.
If you determine that you do need a new EIN, see our how to get an EIN guide for the full application process. You can also apply through ein.so if you need the fax method.