EIN Number: What It Is and How to Get One Free

An EIN is a federal tax ID number the IRS gives your business. It is free, you can get one online in minutes, and most banks will not open a business account without it.

That is the short version. If you just registered an LLC and a bank, a broker or a general contractor is asking for your tax ID, that is what they mean. You do not have to pay anyone to get it.

This guide covers what an EIN number is, what it unlocks, whether you need one, how to get it free, and when you can start using it.

Key Takeaways

• An EIN Is a Federal Tax ID. Nine digits, written XX-XXXXXXX, also called a federal tax identification number.
• It Costs Nothing. The IRS issues EINs free and warns that you never have to pay a fee for one.
• Online Is Instant. Apply through the IRS assistant during its posted hours and the number is issued on the spot.
• Form Your Entity First. The IRS says to register your LLC or corporation with your state before you apply, or the application may be delayed.
• You Can Bank Immediately. A new EIN works right away for a business bank account, but electronic tax filing takes up to two weeks to catch up.

What Is an EIN Number?

An EIN, short for Employer Identification Number, is a federal tax ID number the IRS assigns to businesses, tax-exempt organizations and other entities. It runs nine digits, written XX-XXXXXXX, and also goes by FEIN or federal tax ID number. Yours identifies your business to the IRS the way a Social Security number identifies a person.

The IRS uses it to track your business tax accounts, including employment taxes, excise taxes and the returns your business files. The agency's own overview sits on the IRS employer identification number page.

One thing is worth clearing up, because plenty of sites get it wrong: an EIN is not the same thing as a TIN. TIN, or taxpayer identification number, is the umbrella term. An EIN is one of five kinds, alongside the Social Security number, ITIN, ATIN and PTIN. The Social Security Administration issues Social Security numbers, and the IRS issues all the rest, including yours. There is more detail in our guide to EIN vs TIN.

What an EIN Is Used For

Plenty of owners apply because somebody else demanded it. Here is what it actually opens up.

• Business Banking. Nearly every bank wants an ein number for business accounts before it will open one in your company's name. Our guide to opening a business bank account for an LLC walks through the rest of that process.
• Payroll and Employees. You need one to run payroll and report employment taxes.
• Licenses and Permits. State and local license applications ask for it.
• Client and Vendor Onboarding. Brokers, general contractors and larger clients usually want it on a W-9 before they will pay you.

There is a privacy benefit as well. A sole proprietor without an EIN has to hand a Social Security number to every client who pays them. An EIN lets you give out a business number instead. The IRS is direct about keeping the two apart: an EIN is for your business activities, and the agency says not to use it in place of your Social Security number.

Do I Need an EIN Number?

You need an EIN if you have employees, operate as a partnership or corporation, file employment or excise tax returns, or withhold tax on non-wage income paid to a non-resident alien. LLCs, tax-exempt organizations, estates and most trusts also need one. If none of that applies, you can still request one for banking.

Here is the part most guides skip. If none of those triggers apply to you, say you are a single-member LLC with no employees, you are not federally required to have one. You can still request it, and the IRS allows that explicitly for banking or state tax purposes. Since most banks ask for it anyway and it costs nothing, that is the route most owners in that position take. The specifics for LLCs are covered in does an LLC need an EIN.

How to Get an EIN Number

Apply free at IRS.gov. The IRS says to register your LLC or corporation with your state first, then apply. Online applicants get an EIN immediately. If you cannot apply online, fax Form SS-4 to 855-641-6935 for a reply in about four business days, or mail it and wait roughly four weeks.

That sequencing matters. If you apply before your state has approved the entity, the IRS warns the application may be delayed.

The table below covers how to obtain an EIN number through each route open to US applicants.

Start at the IRS online EIN application, or download Form SS-4 for the fax and mail routes. The IRS page on how to apply for EIN numbers is free to use, and the agency puts it bluntly: beware of websites that charge for an EIN, because you never have to pay a fee for one. Our walkthrough of the EIN application covers each field, and get an EIN is the short version.

Four practical limits catch people out:

• The Tool Keeps Hours. In Eastern time it runs Monday to Friday 6:00 a.m. to 1:00 a.m., Saturday 6:00 a.m. to 9:00 p.m., and Sunday 6:00 p.m. to midnight.
• One Session Only. You cannot save and come back, and the form expires after 15 minutes of inactivity.
• One Per Day. The IRS issues only one EIN per responsible party per day, whichever method you use.
• A Real Person Has to Sign. You name a responsible party and give their Social Security number or ITIN. Nominees are not allowed to apply.

If your principal place of business is outside the US, the online tool is closed to you. You apply by phone on 267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern, or by fax or mail. Timing across all the routes is broken down in how long does it take to get an EIN.

Getting Your EIN Application Right the First Time

This is the part that quietly trips people up, and almost nobody explains it.

IRS systems accept only letters (A to Z), numbers (0 to 9), hyphens and ampersands in a business name. If your registered name contains anything else, translate it before you type it in:

• Symbols Such as Plus Signs, At Signs and Periods. Spell them out or replace them with a space. Jones.Com becomes Jones Dot Com or Jones Com.
• Slashes. Use a hyphen instead.
• Apostrophes. Remove them, and do not add a space where they were.

Street addresses are capped at 35 characters, so lead with the essentials and use standard USPS abbreviations for the rest.

Enter your business name exactly as it appears on your registration or formation documents, translated by those rules. That is precisely what the IRS asks for, so it is worth checking character by character before you submit.

When You Can Start Using Your EIN Number

Having the number and being able to use it everywhere are two different things, and the gap catches people out.

A new EIN works immediately to:

• Open a Business Bank Account.
• Apply for Business Licenses.
• File a Tax Return by Mail.

You wait up to two weeks before you can:

• E-File a Tax Return.
• Pass the IRS TIN Matching Program.
• Make Electronic Tax Deposits or Pay Electronically.

So the bank account can happen the same afternoon you apply. The electronic side needs the number to propagate through IRS systems first. If a return falls due before your EIN arrives at all, the IRS instruction is to write "Applied For" and the date you applied in the space where the number belongs.

When You Need a New EIN

You generally need a new EIN when your business changes ownership or structure. A sole proprietor who incorporates needs a new one, and so does a partnership that becomes a corporation.

You do not need a new EIN to change your business name, move address, or swap the responsible party. Those are updates to the number you already have.

A business entity should only ever hold one EIN. Once the IRS assigns one, it becomes that entity's permanent federal taxpayer ID number. If you have simply lost track of yours, how to find my EIN number covers the ways to dig it back up.

Separately, some LLCs and corporations have to report their beneficial owners to FinCEN. Those rules have changed more than once, so confirm the current obligation on FinCEN's beneficial ownership page rather than assuming.

Forming the entity comes first and the EIN follows. FormationHub files your LLC with your state and can file your EIN alongside it, so the paperwork lands in the right order. File your EIN with FormationHub.

Disclaimer: FormationHub is not a law firm or an accounting firm, and this article is general information, not legal or tax advice. Filing fees, processing times, and state requirements change. Confirm the current requirements with your state's filing office or the IRS before you file, and talk to a licensed attorney or CPA about your specific situation.

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