An Employer Identification Number (EIN) is like a Social Security number for your business. It is a nine-digit number the IRS uses to identify businesses for tax purposes. You may need one to open a business bank account, hire employees, form an LLC, file certain tax returns or work with clients who prefer not to use your personal Social Security number. The best part: getting an EIN is completely free when you apply directly through the IRS. This guide explains how to get an EIN number online for free, step by step, and how to avoid paying unnecessary fees.
This article is general information, not tax or legal advice. Check IRS.gov for the latest requirements.
Who needs an EIN?
You generally need an EIN if you:
- Have employees
- Operate as a multi-member LLC, partnership or corporation
- File employment, excise or certain other federal tax returns
- Have a Keogh or certain retirement plans
- Work with certain trusts, estates or nonprofits
Many single-member LLCs and sole proprietors without employees are not required to have an EIN, but many get one anyway to:
- Open a business bank account
- Keep their Social Security number private on W-9 forms and invoices
- Look more professional
- Apply for business credit
EIN quick facts
| Fact | Details |
|---|---|
| Cost | Free from the IRS |
| Where to apply | IRS.gov, “Apply for an Employer Identification Number (EIN) Online” |
| Time to complete | Often 10 to 15 minutes online |
| When you receive it | Immediately after completing the online application |
| Online hours | The IRS online EIN system has set operating hours; check IRS.gov for current availability |
| Eligibility for online application | Principal business located in the US or US territories, and the responsible party has a valid SSN or ITIN |
| Limit | One EIN per responsible party per day |
Before you apply: what you need
- Legal business name and any trade name (DBA)
- Business structure: sole proprietor, LLC, corporation, partnership, nonprofit, trust or estate
- Number of LLC members if applicable
- Business address in the US
- Responsible party information: name and SSN or ITIN of the person who controls the business
- Reason for applying, such as starting a new business, hiring employees or banking purposes
- Start date of the business
- Principal business activity, such as retail, construction or professional services
- Expected number of employees in the next 12 months, if any
If you are forming an LLC or corporation, it is often best to complete state formation first so your legal name and formation date are correct.
Step-by-step: how to apply for an EIN online
- Go to IRS.gov and search for “Apply for an EIN online.” Make sure the website address ends in .gov.
- Click “Apply Online Now” and begin the application.
- Choose your entity type, such as sole proprietor, LLC or corporation.
- Confirm details about your entity, such as the number of LLC members and the state where it was formed.
- Select your reason for applying.
- Enter responsible party information, including SSN or ITIN.
- Enter business details: name, address, start date, activity and employees.
- Choose how to receive your confirmation letter. Select the online option to download the PDF immediately.
- Review and submit.
- Download and save your EIN confirmation letter (CP 575). Store it securely; you will need it for banks and other purposes.
The online application usually times out after a period of inactivity, so have your information ready before starting.
Other ways to apply
| Method | Timeline | Notes |
|---|---|---|
| Online | Immediate | Fastest, for eligible applicants |
| Fax (Form SS-4) | Usually within a few business days | Fax back if you include a number |
| Mail (Form SS-4) | Several weeks | Slowest |
| Phone | For international applicants only | Call the IRS international line |
Beware of paid EIN websites
Many websites look official and charge $100 or more to “file your EIN.” They simply submit the same free IRS application for you. Some even appear at the top of search results as ads. Always apply directly at IRS.gov to avoid unnecessary fees and protect your personal information.
Common mistakes to avoid
- Applying before your LLC or corporation is officially formed
- Choosing the wrong entity type
- Misspelling the legal business name
- Using a paid third-party site unnecessarily
- Not saving the confirmation letter
- Applying multiple times for the same business
What to do after getting your EIN
- Open a business bank account. See how to open a business bank account online.
- Update W-9 forms with clients so they use your EIN.
- Register for state taxes if required, such as sales tax or state payroll.
- Set up payroll if you will have employees.
- Keep records for tax filing.
For a full overview of registering, read how to register a small business in the US step by step.
Real examples
The freelancer. Kevin, a freelance designer, got an EIN so clients would stop asking for his Social Security number on W-9 forms. The process took about 10 minutes.
The new LLC. Sara formed her LLC with her state, then applied for an EIN the same day and opened a business bank account.
The avoided scam. Marcus nearly paid $250 to a website offering EIN filing, then realized he could apply for free on IRS.gov.
Frequently asked questions
Is an EIN really free?
Yes. The IRS does not charge for EINs. Fees only come from third-party services.
How long does it take to get an EIN online?
You receive your EIN immediately after completing the online application.
Can I get an EIN without an SSN?
You need an SSN or ITIN to apply online. Others can apply by fax, mail or phone (for international applicants).
Do I need an EIN as a sole proprietor?
Not always, unless you have employees or certain tax obligations. Many get one for privacy and banking.
Can I change information on my EIN?
Some changes, such as business address, can be updated with IRS forms. A change in business structure may require a new EIN.
EIN vs SSN vs ITIN: what’s the difference?
| Number | Issued to | Used for |
|---|---|---|
| Social Security number (SSN) | Individuals authorized to work in the US | Personal taxes, employment, benefits |
| Individual Taxpayer Identification Number (ITIN) | Individuals who need a US tax ID but are not eligible for an SSN | Filing personal federal tax returns |
| Employer Identification Number (EIN) | Businesses, trusts, estates and certain other entities | Business taxes, payroll, banking and business identification |
A sole proprietor without employees can usually use their SSN for business taxes, but an EIN keeps the personal number private. An LLC with more than one member, a corporation or any business with employees generally needs an EIN.
How to find a lost EIN
If you misplace your EIN, you can find it in several places:
- Your CP 575 confirmation letter from the IRS
- Previous federal tax returns filed for the business
- Business bank account documents or loan applications
- State business registrations and licenses
- Payroll records if you have employees
If you still cannot find it, you can call the IRS Business and Specialty Tax Line. The IRS will provide the number to an authorized person after verifying identity.
When you need a new EIN
You generally need a new EIN if your business structure changes significantly, for example if a sole proprietorship becomes a corporation or partnership, or if you purchase or inherit an existing business that you will operate as a sole proprietorship. You usually do not need a new EIN if you simply change your business name or location; instead, you notify the IRS of the change. Because these rules have exceptions, check the IRS guidance on “Do you need a new EIN?” before applying again.
Protecting your EIN
Although an EIN is less sensitive than a Social Security number, criminals can misuse business identity information to apply for credit or file fraudulent returns. Share your EIN only with banks, clients who need it for tax forms, payroll providers and government agencies. Store your confirmation letter securely, and watch for unexpected IRS letters about returns you did not file. If you suspect misuse, contact the IRS promptly.
Closing an EIN
If you close your business, the IRS does not cancel an EIN, but it can close the business account associated with it. You will need to file final returns and send a letter to the IRS explaining the closure, including the EIN, legal business name, address and reason for closing. Keep records for several years after closing in case questions arise.
Getting an EIN is one of the fastest, simplest and cheapest steps in setting up a business, so there is no reason to pay anyone else to do it for you.
The bottom line
You can get an EIN number online for free directly from the IRS at IRS.gov in about 10 to 15 minutes, with your number issued immediately. Prepare your business details, apply during the system’s operating hours, save your confirmation letter and avoid paid websites. Then use your EIN to open a business bank account and handle taxes properly. For other startup steps, see how to find a business mentor online for free.
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