Free formation guide

Getting an EIN number: what it is and how to apply.

An Employer Identification Number, or EIN, is essentially a Social Security number for your business. Issued by the IRS, it identifies your company for tax filing, hiring employees, opening a business bank account, and applying for licenses or funding. This is consistently one of the most-searched steps in the business formation process, and for good reason: almost every entity type needs one.

The EIN is free. The IRS issues it directly at irs.gov. Never pay anyone for an EIN alone.

Check yourself

Who actually needs an EIN.

Any business hiring employees

Payroll runs on the EIN. If you plan to hire, even one part-timer, you need one.

LLCs, corporations, and partnerships

In most cases these entities need an EIN even without employees, because the entity files its own paperwork.

Sole proprietors separating finances

Want a business bank account, or personal and business money kept apart? Banks will ask for the EIN.

Nonprofits, trusts, and estates

Organizations that file specific tax forms need their own EIN, employees or not.

The application

How the EIN application actually works.

The IRS issues EINs directly and at no cost through its online application, which is typically the fastest method for US-based applicants with a valid Social Security number or Individual Taxpayer Identification Number. International entrepreneurs without an SSN or ITIN generally need to apply by fax or mail, which takes considerably longer, so it is worth planning for that lead time if that applies to your situation.

One order-of-operations rule matters more than everything else: the entity comes first, then the EIN. The IRS ties the number to a specific, already-registered legal entity name. Form the LLC or corporation with your state (start at how to form an LLC or find your state's official filing office in the state directory), wait for approval, then apply.

Save yourself the delay

Mistakes that slow down an EIN application.

Applying before the entity exists

The most common error. The IRS ties the EIN to a specific, already-registered legal entity name, so an application for an entity your state has not approved yet goes nowhere. Finish the state filing first.

Paying a middleman for a free thing

Another frequent issue is applicants paying third-party services for something the IRS provides free directly on its own site. The money you save belongs in the business.

Questions

Good to know.

How much does an EIN cost?

Nothing. The IRS issues EINs directly and at no cost through its own application at irs.gov. One of the most common mistakes is paying a third-party service for something the IRS provides free on its own site. If someone is charging you for an EIN alone, they are charging you for a free thing.

How fast is it?

The IRS online application is typically the fastest method for US-based applicants with a valid Social Security number or ITIN. International applicants without an SSN or ITIN generally apply by fax or mail, which takes considerably longer, so plan for that lead time.

Can I get an EIN before my LLC is approved?

Do not. The IRS ties the EIN to a specific, already-registered legal entity name, so applying before the entity legally exists is the most common error that slows applications down. Form the entity first (our guide at /how-to-form-an-llc walks it step by step), then apply.

I do not have a Social Security number. Can I still get an EIN?

Yes. International entrepreneurs without an SSN or ITIN generally cannot use the online application, but the IRS accepts applications by fax or mail. It takes longer, so build that wait into your launch timeline, and verify the current process and forms directly with the IRS at irs.gov.

What do I actually use the EIN for?

It identifies your company for tax filing, hiring employees, opening a business bank account, and applying for licenses or funding. Think of it as the number your business's whole paper trail hangs on. Once you have it, opening the bank account is the natural next step; our free guide at /getpaid covers that in the right order.

Nine digits, zero dollars, five minutes.

Get the entity formed, get the EIN free from the IRS, and get back to the part only you can do: building the business.

Observe AI