HappenGuides

How to get an EIN for your business

Last reviewed . General information, not legal or tax advice.

Apply for an EIN directly on IRS.gov. It is free, the online application takes one session, and an approved application gets its nine-digit number immediately. You need your entity type and the responsible party's Social Security number or ITIN. Form your LLC or corporation with the state first, and never pay a website for an EIN.

Do I need an EIN?

An Employer Identification Number is your business's federal tax ID. The IRS says you need one if any of these apply:

  • You have employees.
  • You operate as a corporation or a partnership (including an LLC with two or more members, which is a partnership by default).
  • You file employment, excise, or alcohol, tobacco and firearms tax returns.
  • You withhold tax on income, other than wages, paid to a non-resident alien.
  • You have a Keogh retirement plan, or you are involved with certain trusts, estates, nonprofits or cooperatives.

A sole proprietor or single-member LLC with no employees and none of the above can usually file using their Social Security number. Many still get an EIN because it is free, banks often ask for one when you open a business account, and it lets you give clients and suppliers a business number instead of your Social Security number.

How do I apply for an EIN online?

  1. Form the entity first

    If you are creating an LLC or corporation, wait until the Secretary of State approves it. The IRS warns that applying before the entity is formed may delay the application.

  2. Gather what the form asks for

    Have the business's legal name, address and entity type ready, plus the name and Social Security number or ITIN of the responsible party who controls the business.

  3. Check that the online tool fits you

    The online application is for organizations formed in the United States or its territories, with a principal place of business there, applied for by the responsible party or an authorized representative.

  4. Apply on IRS.gov during its hours

    Start the application from the IRS's own EIN page. Complete it in one session: it cannot be saved, and it expires after 15 minutes of inactivity.

  5. Save your confirmation letter

    If the application is approved, the IRS issues the EIN immediately online. Download and print the confirmation letter, because banks and agencies may ask for it.

When is the IRS EIN tool available?

The online tool only runs during set hours, Eastern Time:

IRS online EIN application hours (Eastern Time), as published by the IRS
DayHours
Monday to Friday6:00 a.m. to 1:00 a.m. the next day
Saturday6:00 a.m. to 9:00 p.m.
Sunday6:00 p.m. to midnight

The IRS also limits issuance to one EIN per responsible party per day, online or by fax or mail. If your principal place of business is outside the United States, you cannot use the online tool and must apply by phone, fax or mail instead.

What should I watch out for?

  • Paid EIN sites. The IRS says you never have to pay a fee for an EIN, and warns about websites that charge for one. Start from irs.gov.
  • Applying too early. The IRS says applying before your LLC or corporation is formed with the state can delay the application.
  • Name formatting. The business name you enter must follow the IRS's formatting rules, so copy it exactly as approved by the state.
  • A second EIN for the same business. You usually keep one EIN for the life of the business. The SBA notes you generally need a new one only when ownership or structure changes, so check with the IRS first.

Your EIN is federal. Your state may issue separate tax account numbers for sales tax or payroll, which you get from the state's revenue department; see seller's permits and sales tax.

Frequently asked questions

How much does an EIN cost?

Nothing. The IRS issues EINs free of charge and says you never have to pay a fee for one. Websites that charge are not the IRS. Apply directly on IRS.gov, where an approved online application gets its number immediately, and keep the confirmation letter for your records.

Do I need an EIN as a sole proprietor?

Not always. A sole proprietor without employees who does not file excise, employment or similar returns can usually use their Social Security number. You need an EIN once you hire, or if you set up certain retirement plans. Many sole proprietors get one anyway for banking and to protect their Social Security number.

Can I get an EIN before forming my LLC?

You should not. The IRS tells LLCs and corporations to form the entity with the Secretary of State before applying, because an EIN applied for first may be delayed. Wait for the state's approval, then apply online using the exact legal name and entity type on your formation documents.

Is an EIN the same as a tax ID number?

An EIN is your federal tax ID number for the business. The SBA notes that states may also issue a state tax ID for state income, employment or sales taxes. They are separate numbers from separate agencies, and you may need both depending on what you sell and whether you have employees.

Can I cancel an EIN I no longer need?

An EIN is permanent and cannot be canceled, the SBA explains, but the IRS can deactivate it if your business is not exempt, has filed all required returns and has paid any tax owed. Follow the IRS's business closing guidance before asking, and keep the number on file for past records.

Sources

  1. Get an employer identification number, Internal Revenue Service. https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
  2. Do you need an EIN?, Internal Revenue Service. https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-an-ein
  3. Get federal and state tax ID numbers, U.S. Small Business Administration. https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers
  4. Open a business bank account, U.S. Small Business Administration. https://www.sba.gov/business-guide/launch-your-business/open-business-bank-account
  5. Limited liability company (LLC), Internal Revenue Service. https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

This guide is general information, not legal or tax advice. Rules differ by state and city and change over time, so confirm the details with the official sources above or a licensed professional.