Essential Guide
How to Get an EIN (Employer Identification Number): The Complete Guide
You can get an Employer Identification Number (EIN) from the IRS instantly and free of charge through the online EIN Assistant. Apply by fax (Form SS-4, 4 business days) or mail (4 weeks). An EIN is required for businesses with employees, LLCs taxed as corporations, partnerships, and trusts.
What Is an EIN?
An Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to identify a business entity for tax purposes. The format is XX-XXXXXXX.
The EIN is essentially the business equivalent of a Social Security number. It allows the IRS to track business tax obligations, including employment taxes, excise taxes, and corporate income taxes. Businesses use their EIN when filing tax returns, opening bank accounts, applying for business licenses, and reporting employee wages.
Every business entity operating in the United States may need an EIN depending on its structure and activities. The IRS does not charge any fee to apply for an EIN, and the online application process takes approximately 15 minutes.
Who Needs an EIN?
According to the IRS, you must have an EIN if any of the following apply to your business:
- You have employees (including household employees like nannies or caregivers)
- You operate as a corporation or partnership
- You file tax returns for employment taxes, excise taxes, or alcohol, tobacco, and firearms taxes
- You have a Keogh retirement plan for yourself or your employees
- You are involved with certain types of trusts, estates, real estate mortgage investment conduits (REMICs), nonprofits, farmer cooperatives, or plan administrators
Even if you are not required to have an EIN, you may still want one for the following reasons:
- Privacy protection: Using an EIN instead of your SSN on business documents helps protect your personal identity
- Banking requirements: Many banks require an EIN to open a business bank account or apply for business credit
- Business licensing: Some states and municipalities require an EIN for business licenses and permits
- Platform requirements: Some gig economy and business platforms now require or prefer an EIN
Sole proprietors without employees do not need an EIN and can use their Social Security number for tax reporting. However, many sole proprietors choose to get an EIN to keep their business and personal tax obligations separate.
Applying Online Through the EIN Assistant
The IRS EIN Assistant is the fastest and most convenient way to apply for an EIN. The online application is available Monday through Friday from 7 a.m. to 10 p.m. Eastern time. When you apply online, you receive your EIN immediately upon successful completion of the application.
Here is how the online application process works step by step:
Step 1: Go to the official IRS website at irs.gov/ein. Make sure you are on the official .gov website to avoid third-party services that charge fees.
Step 2: Select the type of entity you are applying for. Options include sole proprietor, corporation, partnership, LLC, estate, trust, or other entity types.
Step 3: Enter the legal name and taxpayer identification number (SSN, ITIN, or existing EIN) of the responsible party. The responsible party is the individual who ultimately owns or controls the entity or who exercises significant control over the entity's management.
Step 4: Provide business information including the legal name, trade name (if any), business address, county, and date the business started or was acquired.
Step 5: Explain why you are applying for an EIN. Common reasons include starting a new business, hiring employees, banking purposes, or changing the type of organization.
Step 6: Verify all information for accuracy and submit. After submission, you will receive your EIN immediately in a confirmation letter that you should save for your records.
The online EIN Assistant is available in English and Spanish. The application screens adapt based on the answers you provide, so the process may take longer for complex business structures.
Applying by Fax or Mail
If you cannot apply online, the IRS offers alternative application methods. Fax is the next fastest option for domestic applicants, while mail is the slowest method.
Applying by Fax: Complete Form SS-4, Application for Employer Identification Number, and fax it to the appropriate fax number based on your location. The IRS will process your application and fax your EIN back within approximately 4 business days. Fax numbers vary by state, so check the Form SS-4 instructions for the correct number.
Applying by Mail: Complete Form SS-4 and mail it to the IRS address listed in the form instructions. Processing time for mailed applications is approximately 4 weeks. This method is the slowest and should only be used if you do not have access to online or fax options.
Applying by Phone: International applicants who cannot use the online system may apply by telephone. Call the IRS at 267-941-1099 (not a toll-free number) Monday through Friday from 6 a.m. to 11 p.m. Eastern time. The responsible party must be on the call to verify their identity.
For all methods, Form SS-4 must be completed accurately. The form requests information such as the legal name of the entity, trade name, responsible party information, mailing address, entity type, reason for applying, and the date the business started or was acquired.
EIN for LLCs
Limited Liability Companies (LLCs) have specific EIN requirements depending on their ownership structure and tax classification:
| LLC Type | EIN Required? | Tax Classification |
|---|---|---|
| Single-member LLC (disregarded entity) | Not required (unless employees) | Owner reports on Schedule C |
| Multi-member LLC | Required | Partnership (Form 1065) |
| LLC taxed as S-Corp | Required | S Corporation (Form 1120-S) |
| LLC taxed as C-Corp | Required | C Corporation (Form 1120) |
| LLC with employees | Required | Varies by election |
If you own a single-member LLC without employees, you are not required to get an EIN. You can report your business income and expenses on Schedule C using your Social Security number. However, getting an EIN for your single-member LLC offers benefits including privacy protection (keeping your SSN off business documents), easier banking, and preparation for future hiring.
For multi-member LLCs, an EIN is mandatory. The LLC must file a partnership return (Form 1065) annually and provide Schedule K-1 to each member. The EIN is used to identify the partnership for all tax filings.
If your LLC elects to be taxed as an S corporation or C corporation, you must have an EIN. This applies regardless of whether the LLC has employees. The election is made by filing Form 2553 (S-Corp election) or Form 8832 (entity classification election) with the IRS.
Information You Need to Apply
Before starting the EIN application, gather the following information to ensure a smooth process:
- Responsible party information: Legal name and taxpayer identification number (SSN, ITIN, or existing EIN) of the individual who owns or controls the entity
- Business legal name: The exact legal name of the business as registered with state authorities
- Trade name (DBA): Any assumed name or doing-business-as name used for operations
- Business address: Physical location and mailing address of the business
- County and state: The county and state where the business is located
- Entity type: The legal structure of the business (sole proprietor, corporation, partnership, LLC, etc.)
- Reason for applying: The primary reason you need an EIN (new business, hiring employees, banking, etc.)
- Start date: The date the business started or was acquired
- Closing month: The month the business's tax year ends (usually December)
- Number of employees: An estimate of how many employees you expect to have in the next 12 months
The IRS uses this information to verify your identity and assign the appropriate EIN to your business. Providing inaccurate information can delay the application or result in the wrong type of EIN being issued.
What to Do After Getting Your EIN
Once you receive your EIN, take the following steps to properly register and use your new tax identification number:
1. Save the IRS Confirmation Letter. The IRS provides a confirmation letter (CP 575) when you receive your EIN. This letter includes your EIN and confirms your business information. Keep this letter in your business records. If you lose it, you can request a replacement by calling the IRS Business and Specialty Tax Line at 800-829-4933.
2. Open a Business Bank Account. Most banks require an EIN to open a business checking or savings account. Having a separate business bank account is essential for maintaining clean financial records and protecting personal liability.
3. Register for State Taxes. Your EIN is used to register with state tax authorities for state income tax, sales tax, and unemployment tax. Check with your state's department of revenue for registration requirements.
4. File Required Tax Returns. Depending on your business structure, you will file different tax forms. Corporations file Form 1120, partnerships file Form 1065, and sole proprietors report on Schedule C. The EIN is required for all business tax filings.
5. Hire Employees Properly. If you have employees, use your EIN to report employment taxes. You must file Form 941 quarterly and Form 940 annually, and provide W-2 forms to employees by January 31.
6. Apply for Business Licenses. Many states and municipalities require business licenses that reference your EIN. Check local requirements before operating.
7. Set Up Business Credit. Your EIN can be used to establish a business credit profile separate from your personal credit. This helps when applying for business loans, credit cards, and vendor accounts.
Common EIN Questions
Is the EIN application really free?
Yes, the IRS does not charge any fee for applying for an EIN. There are many third-party websites that offer to apply for an EIN on your behalf for a fee ranging from $15 to $100 or more. These services are not affiliated with the IRS and are completely unnecessary. Always use the official IRS website at irs.gov/ein to apply for free.
Can I get an EIN if I am not a US citizen?
Yes, non-resident aliens and foreign entities can obtain an EIN. If you do not have an SSN or ITIN, you must apply by fax or mail using Form SS-4. The IRS will assign an EIN based on the information provided, including your foreign address and identification documents.
How long is my EIN valid?
An EIN never expires. Once assigned, it remains permanently associated with the business entity. Even if your business becomes inactive, the EIN remains in the IRS system. If you close your business, file final tax returns and mark them as final, but the EIN itself is never cancelled.
Can I use my EIN immediately?
Yes, you can use your EIN immediately after receiving it. The EIN is valid from the date it is assigned. You should start using it on all business correspondence, tax returns, and banking documents right away.
What if I lose my EIN?
If you lose your EIN, check for the confirmation letter or any previous tax returns filed with the number. You can also call the IRS Business and Specialty Tax Line at 800-829-4933 to request a replacement letter. The IRS may ask security questions to verify your identity before providing the EIN.
EIN Scams and Warnings
Several common scams target people applying for EINs. Be aware of these fraudulent practices:
Third-party fee scams: Many websites offer to apply for an EIN on your behalf and charge fees ranging from $15 to $200. These sites often appear at the top of search results with misleading advertising. The IRS EIN application is completely free. Only use the official IRS website at irs.gov/ein.
Identity theft risks: Scammers posing as IRS representatives may call or email requesting personal information to apply for an EIN. The IRS will never call to demand payment or request sensitive information by phone. Never provide your SSN, ITIN, or business information to unsolicited callers.
Fake EIN confirmation: Some fraudulent services generate fake EIN numbers that are not registered with the IRS. Using a fake EIN on tax returns or business documents can result in penalties. Always verify your EIN through the IRS by checking the official confirmation letter.
Business registration scams: After receiving your EIN, you may receive official-looking letters offering to file business documents or register your company for a fee. Many of these are not government entities and charge inflated fees for services you can handle directly through your state's business registration office.
The official IRS EIN Assistant is available at irs.gov/ein. The application is free and takes about 15 minutes. Save your confirmation letter and keep it with your business records. If you encounter a website charging a fee for EIN applications, it is not affiliated with the IRS.
Frequently Asked Questions
As a tax content specialist, I verify every detail in this guide against IRS Publication 1635 (Understanding Your EIN), Form SS-4 instructions, and official IRS guidance on EIN applications. The EIN application process is straightforward when you use the official IRS channels, but the prevalence of third-party fee scams makes it essential for business owners to know where to apply. I update this guide each year to reflect any changes in the application process or business entity requirements.
— Lead Tax Content Strategist, TaxCalcHQ