Have you tried to apply for an Employer Identification Number (EIN) online? Instead of getting your EIN, you might have encountered a confusing reference number message.

One of the most frequently encountered messages is the EIN reference number 101. This error code often leaves applicants wondering what it means, how to fix it, and whether it will delay their application.

In this guide, we’ll walk you through what the EIN reference number 101 is, why it happens, and the steps to resolve it.

Assistance for Your Business Filings

At GovDocFiling, we can help overcome problems with EIN reference number 101 errors and still assist you with the application process. To receive your EIN Reference Number 101 Error Resolution Guide, please fill out the form below. You will also be subscribed to our new business email list; you can unsubscribe at any time!

Reference 101 Resolution Guide

Help me obtain an EIN

What is an EIN?

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns to business entities. You’ll need an EIN if you plan to hire employees, open a business bank account, file returns, or apply for certain licenses and permits.

What is an EIN

Image via Investopedia

Having an EIN ensures that your business income, expenses, and tax payments are correctly tied to your business, instead of your Social Security Number (SSN).

This distinction is crucial for limited liability companies, partnerships, and corporations in case of legal or financial issues. It reinforces the legal separation between you and your business. This prevents mix-ups in reporting, leading to more accurate tax filings.

Additionally, an EIN prevents identity theft. For example, when you open a business bank account using your EIN and other business credentials, you help protect your personal information by limiting the number of institutions that require access to it.

It’s important to note that sole proprietors can get an EIN. Although this is not mandatory when starting a business. However, we recommend getting an EIN if you’re a sole proprietor who intends to hire employees and manage payroll.

How to Apply for an EIN

You can get an EIN online, but you need to check your eligibility:

  • Your business is in the United States or within its territories
  • You’re the responsible party (the person controlling the entity)
  • You’re an authorized representative of the entity
  • The responsible party or representative has a valid SSN or individual taxpayer ID number (ITIN)

The online application portal is available during business hours, between 7 a.m. and 10 p.m. EST. Note that the IRS can only issue one EIN to a responsible party per day.

Also, it’s advisable to fulfill the legal requirements for business formation in your state before applying for an EIN online to prevent delays. If you’re outside the US, you can apply by phone, mail, or fax.

While the process is simple, you may make mistakes that can result in an EIN error. However, you can outsource your business formation and EIN application to a reliable third-party service provider to avoid mistakes and further delays.

Also Read:

What Does An EIN Reference Number Mean?

When applying for an EIN, you may encounter an EIN reference number instead of a completed confirmation. A reference number is not your actual EIN but an error code. It signifies that something went wrong during the application process.

EIN Reference Number 101 is a common message applicants encounter when submitting an EIN application online. Understanding this error is important so you can quickly identify the cause and resolve the issue without unnecessary delays.

What Might Cause EIN Reference Number 101?

The EIN reference number 101 appears when there is a name conflict or incomplete information provided on the application form. For some reason, the agency cannot distinguish your company’s identity.

EIN reference number 101 error

Image via LLC University

There are a few common reasons for that:

  • A company from another state has the same name
  • Your business name closely resembles another
  • The primary agent in your firm already has an EIN for another business
  • You made a typo in the form, causing a conflict of information

Part of establishing your company should include a search for similarly named firms in your state. Your state and local governments usually insist you name your business in such a way that it doesn’t conflict with other businesses in their jurisdiction.

That doesn’t mean out-of-state firms haven’t used the same name. You might accidentally duplicate a business name for a business existing in some other part of the country. The IRS is a federal agency, and its scope is much broader than your state government. These conflicts are common.

In other words, an EIN reference number 101 doesn’t mean your business is ineligible. It simply means you should cross-check, correct, update, and resubmit your details.

How to Resolve EIN Reference Number 101

If you see EIN Reference Number 101 during your application, don’t panic. You can easily resolve it and receive your EIN. Here’s a step-by-step process to help:

  • Review Your Information: Review the form you submitted to ensure the business name, the responsible party details, and other information are accurate. Even a minor typo or mismatch can result in EIN reference number 101.
  • Use Alternative Methods: If the problem persists, you need to apply for your EIN using Form SS-4 and submit it via mail or fax.  You’ll also submit proof of your LLC application and Articles of Organization or Certificate of Organization.

Form ss-4

Image via IRS

Also Read:

How to Prevent EIN Reference Number 101 Error

One of the best ways to avoid seeing messages like EIN reference number 101 is to carefully prepare before starting your EIN application online. Start by gathering all the required information in advance. This includes:

  • A unique business name
  • The responsible party’s details
  • Any details about the type of entity you are forming

Next, carefully verify that the information on your form matches your official company records. Name conflicts are a frequent cause of EIN Reference Number 101 errors, so ensure your chosen business name isn’t already in use.

The IRS has other EIN reference error codes, but following these tips will help you avoid them:

  • Make sure your responsible party hasn’t applied for an EIN in the past 24 hours
  • Use a secure and updated browser when applying
  • Start your application during the IRS business hours
  • Begin the process on time, as many people may be trying at the same time

FAQ

1. What does EIN error 101 mean?

EIN Reference Number 101 is a standard IRS error code that appears when your business name closely resembles another company’s name.

If you get this reference number during your EIN application online, it signals that the application couldn’t be completed, and you need to correct and resubmit the form.

2. How do I fix the EIN reference number 101 error?

You can resolve EIN Reference Number 101 by carefully reviewing the application form, confirming your business name and responsible party details, and then resubmitting. If the issue persists, you’ll apply manually via fax or mail, using Form SS-4.

3. What is the best way to apply for an EIN?

The fastest method to get an EIN is to apply online. You’ll usually receive your number immediately after submission. But you can also file by fax or mail using Form SS-4.

4. How do I cancel an EIN?

You cannot cancel an EIN, as it serves as your business’s permanent federal taxpayer identification number. However, the IRS can deactivate your EIN once all outstanding taxes have been paid. To initiate this, you must send a letter to the IRS including your EIN, business name, address, and the reason for the deactivation.

5. What is the difference between EIN and SSN?

A business entity uses an EIN to file tax returns, open bank accounts, and build credit. In contrast, an SSN is assigned to individuals for personal tax reporting and identification. While an SSN identifies a person, an EIN serves as the IRS’s way of identifying a business for tax purposes.

Also Read:

Conclusion

Obtaining a valid EIN, whether online, by fax, or by mail, is a critical step for any business entity. Encountering EIN Reference Number 101 can be frustrating, but it’s actually one of the most common and fixable issues in the application process.

To save time and to avoid getting an EIN Reference Number 101, consider letting a trusted service like GovDocFiling handle the application for you. That way, you can be confident your business will get its EIN smoothly, so you can focus on important things like filing taxes, opening a bank account, and accessing funds.