If you are starting a business in the United States, you will run into the term EIN sooner or later. An EIN is your business’s federal tax identification number, and almost every official step you take after forming your company, from opening a bank account to hiring your first employee, asks for it. The good news is that getting one is simple and completely free. Quick answer: an EIN (Employer Identification Number) is a free 9-digit federal tax ID issued by the IRS, and you can get one online at IRS.gov in about 15 minutes, with the number assigned to you instantly.
In this guide, we explain exactly what an EIN is, who needs one, how it differs from your Social Security number, and the step-by-step process for applying online, by fax, or by mail. This article is for general information only and is not legal advice. If you have not yet chosen a structure for your company, reading our guide on sole proprietorship vs LLC can help you decide before you apply.
EIN Application Methods at a Glance
There are three ways to apply for an EIN. The online method is by far the fastest, while fax and mail exist for people who cannot use the online tool, such as applicants without a Social Security number. Here is a quick comparison so you can pick the route that fits your situation.
| Method | Processing Time | Cost | Who Can Use It |
|---|---|---|---|
| Online at IRS.gov | Instant, in one session | Free | Applicants with an SSN or ITIN |
| Fax (Form SS-4) | About 4 business days | Free | US residents and non-residents |
| Mail (Form SS-4) | 4 to 6 weeks | Free | US residents and non-residents |
What Is an EIN?
An EIN, or Employer Identification Number, is a unique nine-digit number the Internal Revenue Service assigns to businesses, formatted like 12-3456789. The IRS describes it as a federal tax ID for businesses, tax-exempt organizations, and other entities. Think of it as the business equivalent of a Social Security number: it identifies your company on tax returns, payroll filings, and official financial documents.
Despite the word “employer” in the name, you do not need to have employees to get one. Many solo founders obtain an EIN simply to open a business bank account, apply for a business license, or build business credit, since banks and lenders commonly require it. The number never expires, and once it is assigned to your business, it stays yours for as long as the entity exists.
EIN vs SSN vs ITIN vs TIN
The alphabet soup of tax IDs confuses a lot of founders, so let us untangle it:
- EIN: identifies a business entity for federal tax purposes. Issued only by the IRS.
- SSN (Social Security Number): identifies an individual person. You may need yours to apply for an EIN, but the EIN itself is separate.
- ITIN (Individual Taxpayer Identification Number): identifies an individual who is not eligible for an SSN, such as a nonresident owner. An ITIN works for the online EIN application if you do not have an SSN.
- TIN (Taxpayer Identification Number): the umbrella term. EINs, SSNs, and ITINs are all types of TINs.
When people say “tax ID number” or “federal tax ID,” they usually mean an EIN in the context of a business. One more name correction: you will sometimes see “Employee Identification Number,” but the correct name is Employer Identification Number.
Who Needs an EIN?
The IRS gives a short test for whether you are required to have an EIN. You need one if you:
- Have employees, or plan to hire them soon
- Operate as a corporation or a partnership
- File employment, excise, or alcohol, tobacco, and firearms taxes
- Withhold taxes on income paid to a nonresident alien
- Have a Keogh (self-employed retirement) plan
- Are involved in certain trusts, estates, or exempt organizations
In practice, many single-member LLCs and sole proprietors who are not strictly required to have one still get an EIN because banks, payment processors, and licensing agencies ask for it. Getting one also helps you keep your personal SSN off vendor forms and business contracts, which is a simple privacy win.
Who Can Skip It for Now
If you are a sole proprietor with no employees and no excise tax obligations, the IRS does not require an EIN. You can use your SSN for tax purposes. That said, the application is free and takes minutes, so many solo founders apply anyway for the banking and privacy benefits described above.
How to Get an EIN Online (Step by Step)
The IRS online EIN application is the fastest route, and it is the method most founders should use. The online assistant is available Monday through Friday, 7 AM to 10 PM Eastern Time. Sessions cannot be saved, so plan to complete the application in one sitting of about 10 to 15 minutes. Have your information ready before you start.
Before you begin: what you will need
- Your business’s legal name and mailing address
- The name and SSN or ITIN of the responsible party (the person who controls or manages the business, and it must be an individual, not another company)
- Your entity type (LLC, corporation, sole proprietorship, partnership, etc.)
- The date the business started or was acquired
- The closing month of your accounting year
- The estimated number of employees you expect in the first year (you can enter zero)
A quick note on order of operations: form your LLC or corporation with your state first, then apply for the EIN. The IRS wants the entity to exist before it assigns the tax ID. If you are still comparing options, our breakdown of the best LLC formation services for small business covers affordable ways to get your entity set up.
Step 1: Go to the official IRS EIN page
Open irs.gov and navigate to the EIN application section, or search the IRS site for “Apply for an Employer Identification Number (EIN) Online.” Make sure you are on the real IRS.gov domain. Third-party sites may look official and charge $49 to $79 for what the IRS does free.
Step 2: Begin the application and select your entity type
Click through to start the online assistant and choose the option that matches your business structure. The choices include sole proprietor, partnership, LLC, corporation, and several nonprofit and estate options. For a single-member LLC, select Limited Liability Company and indicate the number of members when asked.
Step 3: Answer the questions about your business
The assistant asks around ten questions: the legal name, trade name if any, mailing address, county and state, the responsible party’s name and SSN or ITIN, and details about what the business does. It also asks the reason you are applying, such as starting a new business, hiring employees, or banking purposes. Answer honestly and double-check the spelling of names, since corrections later are a hassle.
Step 4: Review, submit, and save your confirmation
Review the summary page carefully, then submit. Your EIN appears on screen immediately. Download or print the confirmation notice right away. The IRS does not email it to you, and if you close the page without saving, you will need to request a copy through other channels. The official confirmation notice is called the CP575.
Applying by Fax or Mail
If you do not have an SSN or ITIN, or you simply prefer paper, you can apply using Form SS-4, Application for Employer Identification Number. Download it from IRS.gov, fill it out completely, and fax it to the number listed in the form’s instructions, or mail it to the IRS address for your state. Faxed applications are typically processed within about four business days, and mailed applications take four to six weeks. Non-US residents with no US tax ID can still apply this way, which is why many international founders use fax.
Common EIN Application Mistakes
Most EIN problems come from a handful of avoidable errors. Watch out for these:
- Paying a third-party service. The IRS charges nothing. Services that “get” your EIN are selling a free service.
- Applying before the entity exists. Get your state formation approved first.
- Naming the wrong responsible party. It must be an actual person who controls the business, and the IRS issues only one EIN per responsible party per day.
- Typos in legal names and addresses. These create mismatch problems with banks later.
- Applying for multiple EINs. You need only one per entity. Duplicates create IRS correspondence headaches.
- Using a non-IRS website. Scam and reseller sites rank in search results. Always confirm the domain is irs.gov.
After You Get Your EIN
Once the number is issued, a few housekeeping steps keep it working smoothly for you.
Store the confirmation notice safely
Keep the CP575 notice with your permanent business records. Banks often ask to see it when you open an account, and lenders may request it too.
Update the IRS when things change
If your responsible party changes or your address changes, report it to the IRS on Form 8822-B within 60 days. Keeping this current prevents notices going to the wrong person.
When do you need a new EIN?
Your EIN is yours for the life of the entity, but certain changes require a new one: a sole proprietor who incorporates, a partnership that becomes an LLC taxed as a corporation, or a company that is bought and operated as a new entity, for example. A simple address change, name change, or change of business location does not require a new EIN.
What if you lose your EIN?
You can confirm a previously assigned EIN in a few ways: check the original CP575 notice, check old tax returns or bank applications where you listed it, or call the IRS Business and Specialty Tax Line. The IRS can also provide Letter 147C, which serves as official confirmation of your EIN.
FAQs About EINs
Is an EIN really free?
Yes. The IRS states clearly that you never have to pay a fee for an EIN. Any site charging you is adding its own markup for filling out the same free application you can complete yourself in about 15 minutes.
How long does it take to get an EIN?
Online applications assign the number instantly at the end of the session. Fax takes about four business days, and mail takes four to six weeks. Plan accordingly if a bank account or license depends on it.
Do I need an EIN for my LLC?
Single-member LLCs with no employees are not strictly required to have one by the IRS, but you will almost certainly need one to open a business bank account, and most founders find the privacy benefit worthwhile. Multi-member LLCs are treated like partnerships for tax purposes and do need one.
Can I get an EIN without an SSN?
Yes. The online application accepts an ITIN in place of an SSN for the responsible party. If you have neither, apply by fax or mail using Form SS-4. International founders routinely get EINs this way.
Does my EIN expire?
No. An EIN never expires and is never discontinued. If you close the business, notify the IRS to close the tax account so the number is not misused, which also helps prevent identity theft.
Is an EIN the same as a business license?
No. An EIN is a federal tax ID from the IRS. A business license is permission from your state, county, or city to operate. Many businesses need both. Our guide on how to get a business license for a small business walks through that side of the paperwork.
Related Articles
- Best LLC Formation Services for Small Business
- Sole Proprietorship vs LLC: Which Structure Fits Your Business
- Best Accounting Software for Small Business
- How to Get a Business License for Your Small Business
Verdict
An EIN is one of the simplest pieces of business paperwork you will ever handle, and the only cost is a few minutes of your time. Apply online at IRS.gov after your entity is formed, save the confirmation notice, and you will have the tax ID you need for banking, hiring, and licensing. Skip the paid middlemen entirely. For more startup guidance, visit DigitalGeekSpot and browse our small business resources.
