An EIN — Employer Identification Number — is a nine-digit number the IRS assigns to a business. It works the way a Social Security number works for an individual: it identifies the entity on tax filings, bank paperwork, and government forms.
Getting one is free, takes about fifteen minutes, and the number is issued instantly. Which makes it genuinely frustrating how many people pay a third-party website a hundred dollars or more to fill out a form they could have completed themselves before their coffee got cold.
The short version
- An EIN is free, directly from the IRS. Any site charging for one is reselling a free service.
- Apply online and you get the number immediately.
- You need one to hire employees, open most business bank accounts, or file a partnership or corporate return.
- A single-member LLC with no employees can often use the owner's SSN — but usually should not.
- You need a valid SSN or ITIN to apply online. Without one, apply by fax or mail.
Who needs one
You are required to have an EIN if any of the following is true:
- You have employees.
- Your business is a partnership or a corporation.
- You file employment, excise, or certain other federal returns.
- You withhold taxes on income paid to a non-resident alien.
- You have a Keogh plan or certain retirement plans.
- You are involved with certain trusts, estates, or non-profit organizations.
Beyond the requirements, there are strong practical reasons to get one even when you are not obligated. Most banks want an EIN to open a business account. Clients issuing you a 1099 will ask for a tax ID, and giving them an EIN instead of your Social Security number keeps your SSN off other people's paperwork — which is a meaningful reduction in identity-theft exposure.
If you are a freelancer or sole proprietor handing out your Social Security number on W-9 forms, get an EIN. It costs nothing and it stops your SSN from circulating through the filing cabinets of every client you work with.
How to apply
Online — the fastest route
The IRS online EIN application is available during posted hours, and the number is issued at the end of the session. A few things to know before you start:
- The session times out after a period of inactivity and cannot be saved. Have your information ready and complete it in one sitting.
- The responsible party must have a valid SSN or ITIN.
- The IRS limits applications to one EIN per responsible party per day.
- Download and save the confirmation letter (CP 575) at the end. Reissuing it later is a nuisance.
By fax or mail
If the responsible party does not have an SSN or ITIN, the online application will not work. File Form SS-4 by fax or mail instead. Fax is considerably faster than mail — typically a few business days versus several weeks.
By phone
International applicants without a U.S. presence can apply by telephone through the IRS international line.
What the application asks for
Have this ready before you begin:
| Item | Notes |
|---|---|
| Legal name of the entity | Must match your formation documents exactly |
| Trade name / DBA | Only if different from the legal name |
| Mailing address | Where IRS correspondence should go |
| Responsible party | Name and SSN or ITIN of the person who controls the entity |
| Entity type | Sole proprietor, partnership, corporation, LLC, estate, trust |
| Reason for applying | Started new business, hired employees, banking purposes, etc. |
| Start date | When the business began or will begin |
| Expected employees | Best estimate for the next 12 months; zero is a valid answer |
| Principal activity | What the business actually does |
The "responsible party" is the individual who actually controls or directs the entity — not a nominee, not your attorney, not a registered agent service. The IRS has been explicit about this. If the responsible party changes, you are expected to update it with Form 8822-B.
The order that matters
If you are forming an LLC or corporation, form the entity first, then get the EIN. The EIN application asks for the legal name of the entity, and if the state rejects your chosen name after you have already pulled an EIN under it, you end up with a mismatch that is tedious to untangle.
Common problems
"I already have one and I lost it"
Look at a previously filed business return, an old bank application, or a prior year's payroll filing. If none of those turn it up, the IRS Business and Specialty Tax Line can retrieve it for an authorized person after verifying identity. You do not need a new EIN.
"Do I need a new EIN?"
Usually a name or address change does not require a new one — you update the existing record. But changes in entity structure often do. Converting a sole proprietorship to a corporation, or a single-member LLC to a partnership, generally requires a new EIN. Simply electing S corporation status for an existing entity does not.
"The name on my EIN does not match my bank record"
This is common and it causes real friction, especially with payroll filings and 1099 matching. The name on file with the IRS must match what you use on filings. If there is a mismatch, fix it with the IRS rather than working around it.
Search results for "apply for EIN" are full of paid intermediaries with official-looking names. The only official application is on irs.gov. If a site asks for a credit card, you are in the wrong place.
After you have it
Save the confirmation letter somewhere you will find it in three years. You will need the EIN for your business bank account, payroll setup, state tax registration, business licenses, vendor forms, and every business return you file.
If you would rather not deal with any of it, we handle EIN applications as part of setting up a new business — usually in the same appointment as the entity formation, so the whole thing is done at once and the names actually match.