An EIN (Employer Identification Number) is like a Social Security number for your business. It's a unique nine-digit number the IRS assigns to identify your business for tax purposes. The good news? It's completely free and you can get it in about 15 minutes online.
Do You Need an EIN?
You MUST have an EIN if:
You formed an LLC or corporation
You have employees (even one)
You file certain tax returns (employment, excise, alcohol/tobacco/firearms)
You withhold taxes on income paid to non-resident aliens
You have a Keogh retirement plan
You SHOULD get an EIN even if not required:
To open a business bank account (most banks require it)
To build business credit separate from personal credit
To avoid using your Social Security number on forms (better security)
To accept credit card payments
To work with certain clients (many require W-9 forms with an EIN)
You DON'T need an EIN if:
You're a sole proprietor with no employees and you're comfortable using your Social Security number for business purposes. However, we still recommend getting one for the security and professionalism.
How to Apply for an EIN Online (Fastest Method)
The online application is the quickest and easiest way. Here's the step-by-step process:
Step 1: Go to the IRS Website
Visit: irs.gov/ein
Click "Apply for an EIN Online"
Make sure you're on the official IRS site (irs.gov) - many scam sites charge fees for this free service
Step 2: Verify Your Eligibility
You must have a valid Social Security Number (SSN) or Individual Taxpayer ID Number (ITIN)
Your business must be located in the United States
You can only apply for one EIN per day
The service is available Monday-Friday, 7am-10pm Eastern Time
Step 3: Start Your Application
Click "Apply Online Now" and you'll be asked to select your entity type:
Sole Proprietor/Single-Member LLC
Partnership
Corporation
LLC (Multi-Member)
Non-Profit
Other
Choose the one that matches your business structure.
Step 4: Provide Business Information
You'll need to provide:
Legal Name:
For sole proprietors: Your full legal name
For LLCs/corporations: The exact name registered with your state
Trade Name (DBA):
If you operate under a different name, enter it here (e.g., "Sarah's Marketing" if your legal name is "Sarah Johnson")
Business Address:
Physical location where business is conducted
Can be your home address if you work from home
Cannot be a P.O. Box (though you can add one for mailing)
Responsible Party:
Individual who controls, manages, or directs the entity
Usually the owner or CEO
Must have SSN or ITIN
Step 5: Answer Business Details Questions
The IRS will ask several questions:
Reason for applying (starting new business, hiring employees, banking purposes, etc.)
Date business started or acquired
Closing month of accounting year (most choose December)
Highest number of employees expected in next 12 months
Principal activity (what your business does)
Do you expect employment tax liability? (Yes if you'll have employees)
Don't stress about these, just answer as accurately as you can. You can update information later if things change.
Step 6: Review and Submit
Review all information carefully
Make sure your legal business name is exactly as registered with your state
Double-check your SSN/ITIN is correct
Click Submit
Step 7: Get Your EIN Immediately
You'll receive your EIN instantly on screen
Save the confirmation page as a PDF
Print or screenshot your EIN confirmation letter
You'll also receive a confirmation letter by mail in 4-6 weeks (but you don't need to wait for it)
Alternative Methods to Apply
By Mail (Slower):
Download Form SS-4 from irs.gov
Fill it out completely
Mail to the address listed on the form (varies by state)
Processing time: 4-6 weeks
By Fax (Faster than mail):
Fill out Form SS-4
Fax to the number listed on the form
Processing time: About 4 business days
By Phone (For international applicants only):
Call 267-941-1099 (not toll-free)
Available for businesses without a US SSN/ITIN
Available Monday-Friday, 6am-11pm Eastern Time
What to Do With Your EIN
Once you have your EIN, here's what to do:
Store It Securely:
Save the confirmation letter in a secure digital folder
Keep a printed copy in your business files
Store it in your password manager or secure note app
Don't share it publicly (treat it like a SSN)
Use It For:
Opening business bank accounts
Applying for business credit cards
Filing business tax returns
Completing W-9 forms for clients
Applying for business licenses
Setting up payment processors (Stripe, PayPal, etc.)
Common Mistakes to Avoid
Using Scam Websites:
Many websites charge $50-300 to "help" you get an EIN. Don't fall for it. The official IRS service is 100% free. Only use irs.gov.
Wrong Business Name:
Your EIN must match your legal business name exactly as registered with your state. If you formed "ABC Marketing LLC" with your state, use that exact name, not "ABC Marketing" or "ABC Marketing Co." Mismatches cause problems when opening bank accounts.
Losing Your EIN:
If you lose your EIN, you can't just apply for a new one. Call the IRS Business & Specialty Tax Line at 800-829-4933 to retrieve it. Save yourself the hassle by storing it securely from the start.
Applying Multiple Times:
You can only get one EIN per day per responsible party. If your application fails, wait until the next business day to try again.
Do You Need a New EIN?
You need a NEW EIN if:
You change from sole proprietorship to LLC or corporation
Your business is taken over by new owners
You incorporate
Your business is reorganized as a partnership
You keep your EXISTING EIN if:
You change your business name (sole proprietorship or LLC)
You change your business location
You add or drop partners (in a partnership)
Your LLC adds or loses members
Time Required
Online application: 15-20 minutes, EIN issued immediately
By fax: 15 minutes to complete form, 4 business days to receive EIN
By mail: 15 minutes to complete form, 4-6 weeks to receive EIN
The Bottom Line
Getting your EIN is free, fast, and essential for running a legitimate business. The online application takes about 15 minutes, and you'll have your EIN immediately. Don't pay anyone to do this for you, it's one of the easiest parts of starting a business.
Once you have your EIN, you're ready to open a business bank account.