How Do I Get an EIN for My Business, and Do I Need One?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

An Employer Identification Number (EIN) is a free nine-digit federal tax ID that the Internal Revenue Service (IRS) gives to businesses. You need one if you have employees, run a partnership or corporation, or file certain federal taxes, and most LLCs and banks will want one too. Apply directly on IRS.gov. If you’re approved online, you get the number right away, and you never have to pay a fee for it.

What this means

Think of an EIN as a Social Security number for your business. The IRS uses it to track your business tax filings.

The IRS says you need an EIN if you:

Have employees
Operate as a partnership, corporation, or multi-member LLC
File employment, excise, or alcohol, tobacco, and firearms tax returns
Withhold tax on certain payments to nonresident aliens
Run certain trusts, estates, retirement plans, or cooperatives

The IRS also notes that some businesses get one for banking or state tax reasons even when federal law doesn’t require it.

A sole proprietor with no employees can often use their Social Security number for federal taxes. Many still get an EIN so they don’t have to hand their Social Security number to clients and vendors on tax forms.

Made-up example: Rosa starts Bright Path Tutoring as a single-member LLC with no staff. The IRS doesn’t strictly require an EIN for her setup, but her bank asks for one to open a business account. She applies online on a weekday morning, gets her number in about 15 minutes, and saves the confirmation letter.

Why it matters

Banking. Banks often require an EIN to open a business account (see 10.4.1 Business Operating Account).
Hiring. You can’t run payroll without one.
State registration. Many states ask for it when you register for sales tax or payroll accounts.
Privacy. Using an EIN keeps your Social Security number off forms you give to clients.
Scams. Sites that look official charge for EINs. The IRS says you never have to pay.

Who this applies to

Every business should decide whether it needs one. Partnerships, corporations, multi-member LLCs, and any business with employees must have one. Single-member LLCs and sole proprietors without employees may not need one for federal income tax, but often get one anyway. Rules for state tax ID numbers are separate, so check with your state tax department.

How to do it

Form your entity first if you’re forming one. The IRS asks for the legal name and formation details, and the number is tied to that entity (see 9.1.1 Formation-State Registration).
Know your responsible party. This is the real person who controls the business. You’ll need their name and Social Security number or individual taxpayer identification number (ITIN). A nominee, like a formation service, can’t apply for you (see 10.1.7 Responsible Party).
Go to IRS.gov. Search “Get an employer identification number” and use the IRS online application. Don’t use look-alike sites.
Check the hours. The IRS lists the online tool’s hours on its page. When we checked, it was open most of the day on weekdays and part of the weekend, Eastern time. Check the page for current hours before you start.
Do it in one sitting. The IRS says you can’t save the application, and it times out after 15 minutes of inactivity.
Answer carefully. You’ll pick your entity type and reason for applying. These answers shape what the IRS expects you to file.
Save the confirmation letter right away. Download or print it before you close the page.
Record it in your Master Business Record (see 5 Master Business Record).

If your principal place of business is outside the United States, the IRS says to apply by phone, fax, or mail instead. The IRS also limits applicants to one EIN per responsible party per day.

What proof to keep

The IRS EIN confirmation letter (often called the CP 575 notice)
A note of the date you applied and the answers you chose
Where the number is used: bank, payroll, state accounts

Store the letter in your tax records folder. Banks and lenders often ask for it.

Common mistakes

Paying a website for an EIN. It’s free from the IRS.
Applying before forming the LLC or corporation. The EIN should match the entity’s legal name.
Listing a formation service as the responsible party. The IRS says nominees can’t apply.
Losing the confirmation letter. Getting a copy later takes extra steps.
Getting a second EIN by mistake. Check whether you already have one before applying again.
Picking the wrong entity type. It sets which returns the IRS expects.

When to get help from a pro

CPA or tax professional: if you’re unsure about entity type, tax classification, or whether you need an EIN. Questions to ask:

Do I need an EIN for my setup, or can I use my Social Security number?
Which entity type and reason for applying should I choose?
Should I make a tax election at the same time?

Bill’s note

[Bill: add a short lesson. For example, a client who paid a third-party site for an EIN, or how long it took you to get the SiteSmarty EIN online.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: how I applied for the SiteSmarty EIN and which entity type I chose]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the EIN confirmation letter]
[Result so far:]

Questions people ask

Does it cost money to get an EIN? No. The IRS says you never have to pay a fee for an EIN.

How long does it take? If you apply online and are approved, the IRS gives you the number right away. By fax it’s about 4 business days, and by mail about 4 weeks.

Do I need an EIN as a sole proprietor? Only if you have employees or file certain taxes. Many sole proprietors get one anyway to keep their Social Security number private.

What do I need before applying? Your legal business name, entity type, address, and the responsible party’s name and Social Security number or ITIN.

Can I change my EIN later? You generally don’t change it, but some changes to your business, like a new entity type, can require a new one. Ask your CPA.

Audit check

Question: Does the business have an EIN when required, obtained free from the IRS, with the confirmation letter on file?
Pass looks like: EIN obtained from IRS.gov. Correct entity type and real responsible party. Confirmation letter saved. Number recorded in the Master Business Record.
Fail looks like: No EIN when one is required. A fee paid to a third-party site. A nominee listed as responsible party. Letter lost.
Evidence to collect: IRS confirmation letter, Master Business Record entry, and bank or state account records showing the EIN.

Where this fits

Do this first: 8.6.3 Limited Liability Company, 9.1.1 Formation-State Registration, 10.1.7 Responsible Party

Do this next: 10.1.2 Federal Tax Classification

Sources

IRS, "Employer identification number" (checked October 17, 2026)
IRS, "Get an employer identification number" (checked October 17, 2026)
IRS, "Responsible parties and nominees" (checked October 17, 2026)
IRS, "Instructions for Form SS-4" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.