How to Get an EIN (Free)

An Employer Identification Number (EIN) is a nine-digit federal tax ID for your business. Applying is free on the IRS website and often takes around 15 minutes. If a service asks you to pay for an EIN, you are paying for something you can do yourself.

Who needs an EIN

  • Any LLC or corporation, if it has employees, files certain excise or employment tax returns, or elects to be taxed as a corporation
  • Multi-member LLCs and partnerships
  • Businesses that open a business bank account, since banks usually ask for one
  • Single-member LLC owners who want to avoid giving out their Social Security number to clients

What you need before you apply

  1. Your legal business name exactly as it appears on your formation document
  2. The business address and structure (LLC, corporation, partnership)
  3. The responsible party: an individual who owns or controls the entity, with a valid SSN or ITIN
  4. The reason you are applying, such as starting a new business or banking
  5. The date the business started and your expected first-year employee count

How to apply online

  1. Go to the IRS EIN page at irs.gov and choose the online application.
  2. Select the entity type and answer the questions about ownership and business activity.
  3. Review your details carefully and submit.
  4. Download and save the confirmation letter (CP 575 or the online confirmation). You will need it for banking and taxes.

The online application is available during limited hours on weekdays, in Eastern time, so if it is closed try again later. You get your EIN immediately after a successful application.

Other ways to apply

  • Fax or mail Form SS-4: slower, and takes days to weeks.
  • Phone (international applicants): applicants without an SSN or ITIN often apply by phone or by fax or mail with Form SS-4.

Mistakes to avoid

  • Paying a third-party site for an EIN, which is always free from the IRS
  • Using a name that does not match your state filing, which can cause banking problems
  • Applying before the LLC exists, since the entity should be formed first
  • Losing the confirmation letter: if that happens you can request a copy from the IRS

After you have an EIN

Use it to open the business bank account, file taxes, and hire employees. If you later close the business, the IRS does not cancel the number but does let you close the business account. Read our formation checklist for what comes next.

Troubleshooting common problems

  • The online form rejects the name or entity type: check that they match your formation document exactly, including the LLC designator.
  • Session timed out: the IRS system expires idle sessions, so have every detail ready before you start.
  • Responsible party issues: the applicant must be an individual who controls the entity. You cannot use another entity's EIN as the responsible party for most online applications.
  • You lost the confirmation letter: the IRS can send a replacement confirmation of your EIN, but request it early because banks often ask for it.
  • You applied twice: an entity should have one EIN. If you received two, contact the IRS rather than using both.

What an EIN does not do

An EIN identifies your business for federal tax purposes. It does not form the entity, register you with the state, or exempt you from state taxes. Think of it as your business's Social Security number: necessary for banking, hiring, and filing, but separate from the state formation.

FAQ

Is an EIN free?
Yes. The IRS charges nothing for an EIN. Sites that charge a fee are third parties.
How long does it take to get an EIN?
An online application typically issues the number immediately after you complete it.
Can I get an EIN without an SSN?
Yes, foreign applicants can apply by phone, fax, or mail using Form SS-4 without an SSN or ITIN.
Does an EIN expire?
No. An EIN stays with the entity. If the business closes, you close the IRS business account, but the number remains assigned to it.

Sources

Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state.