A responsible party is someone who owns, controls or exercises effective control over a business, nonprofit or other legal entity and directly or indirectly manages its funds and assets. When you apply for an employer identification number (EIN), you must name a qualified responsible party and submit their taxpayer ID number. Your responsible party must be a person, not an entity. The only exception is for government entities. Responsible parties for your entity The responsible party depends on your entity type. It’s usually: Corporation: Principal officer Partnership: General partner Tax exempt organization: Principal officer Trust: Grantor, owner or trustor Estate: Executor, administrator, personal representative or other fiduciary Government entity: Agency or representative who can legally bind the entity You aren’t a responsible party: If you can fund an entity or are entitled to its property but aren’t authorized to control, manage, or direct it. Example: a minor child beneficiary. See the full definition of responsible party. Enter the responsible party on your EIN application List the name and taxpayer ID number (Social Security number or individual tax ID number) of your responsible party. If you have more than 1 responsible party, list the person you want the IRS to recognize. Report beneficial owners to FinCEN when required Some corporations, limited liability companies, and other entities may be required to report information on beneficial owners (the people who ultimately own or control your company) to the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN)link to https://www.fincen.gov/contact. Nominees can’t apply A nominee is someone you give limited authority to act for your entity during its formation. The nominee has little or no control over the entity's assets. Nominees can’t apply for an EIN and shouldn’t be listed on Form SS-4. If you haven’t identified a responsible party yet and use a nominee to process your entity’s state formation, you must identify the responsible party before you apply for an EIN. If you list a nominee on an EIN application You must correct the information and identify your responsible party. Listing a nominee could disclose your information to an unauthorized person. Use Form 8822-B, Change of Address or Responsible Party – Business PDF to change your nominee. Change your responsible party Use Form 8822-B, Change of Address or Responsible Party – Business PDF to report changes to your responsible party, address or location to the IRS within 60 days. Send the form to the address in Form 8822-B. If you haven’t received our confirmation letter of your change within 60 days, mail a copy of your Form 8822-B and write “Second Request" on it. Related Form SS-4, Application for Employer Identification Number PDF Instructions for Form 990, Return of Organization Exempt from Income Tax PDF
