An EIN (Employer Identification Number) is like a Social Security Number for your business. You need one to open a business bank account, hire employees, file taxes, and apply for business credit. The good news? It's completely free to get from the IRS.
Don't Pay for This!
Many websites charge $50-$200 to "help" you get an EIN. This is unnecessary - the IRS provides EINs for free, and the process is simple.
Table of Contents
1. What is an EIN?
An EIN (also called a Federal Tax ID Number) is a unique 9-digit number the IRS assigns to businesses. It looks like this: XX-XXXXXXX
You'll use your EIN to:
- Open a business bank account
- File federal and state taxes
- Hire employees and pay payroll taxes
- Apply for business credit cards and loans
- Apply for business licenses and permits
- Build business credit with Dun & Bradstreet
- Create vendor accounts with suppliers
EIN vs. SSN
Using an EIN instead of your SSN protects your personal identity. It also helps establish your business as a separate legal entity, which is important for liability protection and building business credit.
2. Who Needs an EIN?
You definitely need an EIN if you:
- Have formed an LLC or Corporation
- Have or plan to have employees
- File employment, excise, or alcohol/tobacco/firearms tax returns
- Withhold taxes on income paid to a non-resident alien
- Have a Keogh plan
- Are involved with trusts, estates, or certain other organizations
You should get an EIN even if not required if you:
- Want to open a business bank account
- Want to build business credit
- Want to protect your SSN from being shared with vendors
- Plan to apply for business financing
Pro Tip
Even sole proprietors without employees should get an EIN. It makes your business look more professional, protects your SSN, and is required by most banks for business accounts.
3. How to Get an EIN (Step-by-Step)
The fastest way is the IRS online application. Here's exactly what to do:
Gather Your Information
You'll need: Legal business name, business address, responsible party's SSN/ITIN, business structure type, reason for applying.
Go to the IRS Website
Visit irs.gov/ein and click "Apply Online Now." The online assistant is available Monday-Friday, 7am-10pm Eastern.
Select Your Entity Type
Choose: Sole Proprietor/Individual, Partnership, Corporation, S Corporation, LLC, Trust, Estate, or other.
Answer the Questions
The system will ask about your business structure, why you need an EIN, number of employees expected, and business activities.
Confirm Your Information
Review all details carefully. You can't change your EIN once issued - you'd have to apply for a new one.
Receive Your EIN
Your EIN is displayed immediately on screen. Print or save the confirmation notice (CP 575). You'll receive an official letter in 4-6 weeks.
4. Application Methods
Online Application Recommended
- Time: Immediate (EIN issued at end of session)
- Cost: Free
- Hours: Monday-Friday, 7am-10pm Eastern
- Website: irs.gov/ein
Best option for most applicants. You get your EIN instantly and can start using it right away.
Phone Application International
- Time: Immediate (given over phone)
- Cost: Free
- Number: (267) 941-1099 (not toll-free)
- Hours: Monday-Friday, 6am-11pm Eastern
For international applicants without a US address. Must call from outside the US.
Fax Application
- Time: 4 business days
- Cost: Free
- Form: IRS Form SS-4
- Fax: (855) 641-6935
Fill out Form SS-4, fax it in, and receive your EIN by fax within 4 business days.
Mail Application
- Time: 4-6 weeks
- Cost: Free (plus postage)
- Form: IRS Form SS-4
- Address: See Form SS-4 instructions for your state
Slowest method. Only use if you can't apply online or by fax.
5. What to Do After You Get Your EIN
Got your EIN? Here's your next steps:
Immediate (Same Day)
- Save your EIN confirmation - Print/save the CP 575 notice
- Store it securely - Treat it like your SSN
- Open a business bank account - You can do this immediately
Within 1 Week
- Get your D-U-N-S number - Apply at dnb.com (free)
- Update business licenses - Add EIN to any permits
- Set up accounting - Use EIN for business records
Within 30 Days
- Apply for vendor accounts - Start building business credit
- Get a business credit card - Secured if needed
- Register with state - Some states require separate registration
Next Step: Open a Business Bank Account
With your EIN in hand, you can now separate business and personal finances.
Get Help Starting Your Business6. Frequently Asked Questions
How long does it take to get an EIN?
Online: Immediate. Phone: Same call. Fax: 4 business days. Mail: 4-6 weeks.
Is getting an EIN really free?
Yes, 100% free from the IRS. Avoid any website charging for this service - they're just filling out the same free form for you.
Can I apply for an EIN before forming my LLC?
No, you need a legal business entity first. Form your LLC, then apply for the EIN. You'll need the exact legal name and formation date.
Do I need a new EIN if I change my business name?
Usually no. You keep the same EIN but notify the IRS of the name change. However, if you change your business structure (like from sole prop to LLC), you need a new EIN.
Can I have multiple EINs?
Each separate business entity needs its own EIN. If you have multiple LLCs, each one needs its own EIN.
What if I lost my EIN?
Check your confirmation letter, bank statements, or tax returns. You can also call the IRS Business & Specialty Tax Line at (800) 829-4933 to retrieve it.
Do sole proprietors need an EIN?
Only if you have employees or file certain tax returns. But it's recommended for anyone wanting a business bank account or business credit.
Can non-US residents get an EIN?
Yes, but you must apply by phone at (267) 941-1099. You'll need an ITIN or SSN, or documentation showing you're a responsible party.
Key Takeaways
- EINs are free from the IRS - don't pay anyone for this
- Online application takes under 15 minutes and EIN is issued instantly
- You need an EIN before opening a business bank account
- Apply at irs.gov/ein (Monday-Friday, 7am-10pm Eastern)
- After getting your EIN, immediately get your D-U-N-S number to start building business credit