As a homeowners/condo association will be collecting dues from members for common expenses, it will need to have a tax ID number. A homeowners/condo association is generally incorporated as some type of business or LLC. Even though it may operate on a non-profit basis, it will be collecting money, performing fundraising, hiring employees, opening business bank accounts, and even opening lines of credit. The homeowners/condo association will need to hire vendors, maintenance workers, repair services, and more, and all of this will be under the association rather than a specific individual.
An EIN (as well as the company’s organizational documents) will be critical to separating the association from its board. Once the organization has been formed, it should also apply for an EIN. An EIN can be acquired in as little as an hour if it’s applied for online. It can also be applied for via phone, fax, and mail.