What Is an EIN?
An EIN is essentially a Social Security number for your business. Also called a Federal Tax ID Number, it's a unique 9-digit number (XX-XXXXXXX) assigned by the IRS to identify your business entity.
Do You Need an EIN?
You must get an EIN if you:
- Have employees
- Operate as a corporation or partnership
- File employment, excise, or alcohol/tobacco/firearms tax returns
- Withhold taxes on income paid to a non-resident alien
You should get an EIN even if not required because:
- Banks require it to open a business bank account
- It protects your SSN (you can use the EIN instead on forms)
- Clients and vendors may request it for 1099 reporting
- It looks more professional than using your personal SSN
How to Apply for an EIN Online (Fastest)
1
Go to the IRS Website
Visit the IRS EIN Assistant. The online application is available Monday-Friday, 7am-10pm Eastern Time. It's completely free — never pay a third party for an EIN.
2
Select Your Entity Type
Choose the type of entity that matches your business:
- Limited Liability Company (LLC) — Most common for small businesses
- Sole Proprietor — If you haven't formed an LLC
- Corporation — If you've incorporated
- Partnership — If you have multiple owners without an LLC
3
Enter Your Information
You'll need:
- Legal name of the business (as filed with your state)
- Business address
- Name and SSN of the "responsible party" (usually the owner)
- Reason for applying
- Type of business activity
- Number of employees expected in the next 12 months
4
Receive Your EIN Instantly
After submitting, you'll receive your EIN immediately on screen. Save and print this confirmation — the IRS will also mail a confirmation letter (CP 575) in 4-6 weeks, but you can use the EIN right away.
Other Ways to Apply
| Method | Processing Time | When to Use |
|---|---|---|
| Online | Immediate | Best for most applicants |
| Fax (Form SS-4) | 4 business days | If online is unavailable |
| Mail (Form SS-4) | 4-6 weeks | Last resort |
| Phone | Immediate | International applicants only |
After You Get Your EIN
- Open a business bank account — See our best business bank accounts
- Set up accounting — Start tracking income and expenses from day one
- File any required state tax registrations
- Use your EIN instead of your SSN on W-9 forms, contracts, and invoices
Common EIN Mistakes to Avoid
- Paying for an EIN — It's always free from the IRS. Third-party services that charge are unnecessary.
- Applying before forming your LLC — File your Articles of Organization first, then get the EIN.
- Getting multiple EINs — Each business entity needs only one EIN. Don't apply more than once for the same entity.
- Not saving the confirmation — Print or screenshot your EIN immediately. The IRS confirmation letter takes weeks.