SBA Launches Online Employer ID Number Application

Small businesses could save hundreds of millions of dollars by using a new Internet-based system that will allow them to register their business at the state level and apply for and receive their Federal Employer Identification Number at the same time. The new application can be found at http://businesslaw.gov/template.cfm?catid=10044, by clicking on Integrated State Register & Federal EIN Application.

The new service was developed by the SBA in partnership with the IRS through a contract with EzGov, a major e-government technology provider. The Internet-based process will save both time and close to $200 million for the more than four million small businesses that apply annually in a manual process.

The SBA online application will streamline the state and federal application processes by automating the exchange of applicant data between states and the federal government. Because it is built with a Web services interface, any participating state can quickly and easily offer a seamless state registration and federal EIN tool that, in addition to saving time and money, reduces the burden to the business owner.

This integration, coupled with the interview style form, will prompt users to input the necessary information for both state and federal applications without the redundancy of completing separate forms. The states of Georgia and Illinois are the first partners participating with the SBA on this intergovernmental solution, with additional states expected to join soon.

"The launch of this Web-based service demonstrates how the SBA is partnering with both government and industry to create a customer-driven government, as demanded by President Bush in his five-point management agenda," said SBA Administrator Hector V. Barreto. "It also shows our commitment to reduce the burden on small businesses and save them money. We estimate that if four million businesses use this application, it will save them $200 million a year."

"The SBA’s progressive approach for implementing this national EIN application demonstrates the agency’s clear commitment to improving the constituent to government experience,” said Ed Trimble, EzGov CEO. "By further integrating the interaction and exchange of information between state and federal agencies, the SBA is forging ahead to make the potential of e-government a reality for today."