An EIN costs nothing, takes about 15 minutes on the IRS website, and you can get it yourself. The sites that charge a fee to "get your EIN" are selling you the same free form. Here is how to get an EIN from the IRS, who actually needs one, and what to have in front of you before you start. This is general information, not tax advice, so check with a tax professional if your situation is complicated.
An EIN is a nine-digit tax ID for your business, and the IRS gives it away
An employer identification number (EIN) is a nine-digit number the IRS uses to identify a business or other entity. You may also see it called a federal tax ID. It's separate from your Social Security number, though you'll use your SSN or ITIN to apply.
The IRS says on its EIN application page that you never have to pay a fee for an EIN, and it warns about websites that charge for one. If a site asks for payment to file the form, you're paying a middleman for a free service. Before you type in anything sensitive, check that the address ends in irs.gov.
Not everyone needs an EIN, so check before you apply
The IRS lists the situations that call for one on its page about when you need an EIN. You generally need one if you:
- Have employees.
- Operate as a corporation or partnership.
- File employment, excise, or certain other business tax returns.
- Withhold taxes on income paid to a nonresident alien.
- Have a Keogh retirement plan.
- Are involved with certain entities such as trusts, estates or nonprofits.
If you're a freelancer or a solo business owner with no employees, none of those may apply to you. In that case you can usually use your own name and Social Security number for tax purposes, and an EIN is optional.
Plenty of solo business owners get one anyway, because it lets them give clients an ID other than their SSN on a W-9, and some banks ask for one when you open a business account. Using an EIN instead of your SSN on paperwork keeps your Social Security number in fewer people's inboxes.
Single-member LLCs are the confusing case. The IRS's single-member LLC page says an LLC needs an EIN if it has employees, and that it is treated as a separate entity for employment tax and certain excise taxes. A single-member LLC with no employees and no excise tax liability generally uses the owner's name and taxpayer ID for federal income tax, but it can still get an EIN if a bank asks for one or state tax law requires one. Practically, most LLC owners end up applying, so confirm the details for your state and tax setup.
If you're weighing up your side hustle is ready to become a real business, this Girlboss guide on taking a side hustle full time covers structure, banking and taxes in one place.
Gather these details first, because the form will not wait
The online application can't be saved. Per the IRS, you have to finish it in a single session, and it times out after 15 minutes of inactivity. Pull everything together before you open it:
- Your legal business name, and any separate trade name. If you're forming an LLC or corporation, wait until your state formation is done and use the exact name on your documents.
- Addresses. Mailing address and the physical location of the business.
- Entity type. Sole proprietor, partnership, LLC, corporation and so on. For an LLC, know how many members it has.
- The responsible party. The IRS defines this as the person who owns or controls the entity. For most small businesses, that's you. You'll need their SSN or ITIN.
- Business details. Start date, the reason you're applying, your main business activity, and if you expect to have employees.
- Your accounting year-end.
Type the legal name exactly as it appears in your formation paperwork or, if you're a sole proprietor, as your own legal name, and follow the form's instructions on punctuation.
Apply online when you can, and expect your number immediately
Online is the fastest route, and the number comes back at the end of the session. To use it, the IRS says your business must be formed in the US or a US territory with its principal place of business there, you must be the responsible party or an authorized representative, and you need the responsible party's SSN or ITIN.
The tool runs on set hours, Eastern Time. The IRS currently lists:
- Monday through Friday: 6:00 a.m. to 1:00 a.m. the next day.
- Saturday: 6:00 a.m. to 9:00 p.m.
- Sunday: 6:00 p.m. to midnight.
Hours can change, so check the IRS page before you plan around them. The tool also allows only one EIN per responsible party per day, which matters if you're setting up more than one entity.
Choose the entity type that matches your legal structure, answer the questions about ownership and activity, then review your name, address and tax ID before you submit. Errors here can take time to correct.
When the IRS approves the application, it issues your EIN right away. Print or save the confirmation letter before you close the window, and file a copy with your formation documents and tax records. Banks and other organizations may ask for proof, and a lost letter is a hassle to replace.
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If you can't apply online, use Form SS-4
Some applicants can't use the online tool, including businesses whose principal place of business is outside the US. In that case you can apply with Form SS-4 by fax or mail, and international applicants can also apply by phone. According to the IRS instructions for Form SS-4:
- By mail, you should file at least four to five weeks before you need the EIN. The IRS says you'll receive it in approximately four weeks.
- By fax, you can generally receive your EIN within four business days.
- By phone, the option is for international applicants only. The IRS no longer issues EINs by phone for domestic taxpayers.
The instructions also cover what to enter on line 7b if the responsible party isn't eligible for an SSN or ITIN. The IRS says to enter "foreign" or N/A there, and an entry is required.
If you've mailed an application, don't send a second one just because you're impatient. Wait out the expected timeline and contact the IRS about the status first. Duplicate applications create duplicate numbers, which cause confusion later.
What to do once you have the number
Use the EIN to open a business bank account, apply for licenses and fill out forms your clients send you. When you complete a W-9, the name and taxpayer ID have to match your tax classification. If you're a sole proprietor, your own name goes on the first line and your business name goes on the second, if you have one. Follow the W-9 instructions for your situation, especially if you have an LLC.
An EIN solves one specific problem: identifying your business to the IRS. It doesn't:
- Create an LLC or give you liability protection.
- Replace business licenses or state registrations. Check with your state about sales tax, employer accounts and permits.
- Build business credit on its own, or guarantee that a lender will approve you.
Seven mistakes to avoid when you're self-employed is a good read before your first invoice, and if you're still on a payroll, going from corporate to freelance breaks down the transition. If you're juggling a day job, this piece on working a side hustle without losing your day job is worth a look.
Mistakes to avoid: duplicates, lost numbers and changes
Applying twice. Before you start, check if your business already has an EIN. If you suspect you ended up with more than one for the same entity, contact the IRS to confirm which one to use.
Losing the number. Don't pay a lookup service. Check your original confirmation letter, past business tax returns and your business bank's records first. If those fail, contact the IRS directly through its official site.
Getting a new one when you don't need it. The IRS guidance on getting a new EIN says you don't need a new number just because your business name or address changes. Bigger changes can: a sole proprietor who incorporates needs a new EIN, for example, as does ending one partnership and starting another. Check the page before you apply for a replacement.
Forgetting to update the record. If your responsible party or address changes, report it to the IRS on Form 8822-B. The Form SS-4 instructions give a 60-day window for reporting a responsible-party change. Neither change means a new EIN.
Block out 20 minutes this week
First decide if you need an EIN, using the list above. If you do, gather your legal name, addresses, entity details and the responsible party's SSN or ITIN, then set aside 20 uninterrupted minutes on the IRS site. Save the confirmation letter the second it appears.
Then keep going: browse the Girlboss career guides for what to tackle next.
Frequently Asked Questions
Can I get an EIN for something other than a business?
Yes, in some cases. Estates, trusts and certain other entities can have EINs, and so can some tax-exempt organizations and retirement plans. You need a valid purpose and the authority to apply for that entity. An EIN isn't a substitute for your personal taxpayer ID.
What if I don't have an SSN or ITIN?
You can still get an EIN if you're a foreign responsible party who isn't eligible for either. You can't use the online tool, which requires an SSN or ITIN. Apply by phone, fax or mail with Form SS-4, and follow the line 7b instructions, which tell you to enter "foreign" or N/A.
How do I get an EIN for a trust or an estate?
Apply under the legal name of the trust or the estate. For a trust, the responsible party is typically the grantor, owner or trustor. For an estate, it's the executor, administrator or other fiduciary. Trusts vary, so read the Form SS-4 instructions or ask an attorney.
Is my EIN the same as my business license number?
No. An EIN is a federal tax ID issued by the IRS. A business license is issued by a city, county or state, and state tax accounts have their own numbers. Getting one doesn't complete the others, so check which registrations apply where you operate.
What if the online application shows an error?
Write down the error or reference number, then follow the on-screen instructions. Don't start over right away. If you aren't sure whether an EIN was issued, contact the IRS first, because the daily limit and duplicate-number problems can complicate a second attempt.
