What is an EIN?
An Employer Identification Number (EIN) — also called a Federal Tax Identification Number or FEIN — is a unique 9-digit number assigned by the IRS to identify your business for tax purposes. It looks like this: 12-3456789.
Think of it as your business's equivalent of a Social Security Number. The IRS uses it to track your business's tax filings, and banks, vendors, and partners use it to verify your business identity.
The best part: applying for an EIN is completely free when you apply directly through the IRS. Any website charging you for an EIN is just a middleman — don't pay them.
9-Digit Number
Format: XX-XXXXXXX. Permanently assigned to your business.
Issued by the IRS
Free from the IRS. Apply online, by fax, or by mail.
Permanent
Your EIN never expires and stays with your business forever.
Used Everywhere
Required for bank accounts, taxes, employees, and contracts.
Who needs an EIN?
You must get an EIN if your business:
- Has employees (current or planned)
- Is structured as an LLC, corporation, or partnership
- Files excise taxes (fuel, firearms, alcohol, etc.)
- Withholds taxes on non-wage income paid to non-resident aliens
- Has a Keogh retirement plan
- Is involved with certain types of organizations (trusts, estates, non-profits)
You should get an EIN even if not required because:
- You need it to open a business bank account
- It protects your personal SSN from being shared with vendors, contractors, and clients
- It's required on most business contracts and forms
- Most state business licenses require it
- You'll need it if you ever hire employees
How to apply for an EIN online
The fastest way is the IRS online EIN application. It takes about 15 minutes and you receive your EIN immediately.
Go to the IRS EIN Assistant
Navigate to irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online — or search "IRS EIN online application." The official IRS domain is irs.gov. Do NOT use third-party sites.
Select your entity type
Choose the type of entity applying: LLC, Sole Proprietor, Corporation, Partnership, etc. For an LLC, select "Limited Liability Company" and enter the number of members.
Select your reason for applying
Choose "Started a new business" for new LLCs or corporations. Other options include hiring employees, banking purposes, or a change in organization type.
Enter your business details
Provide your LLC name (exactly as it appears on your Articles of Organization), principal business location (state and county), date business started, and your first closing month of the fiscal year.
Identify the responsible party
The "responsible party" is the person who controls the entity — usually you, the owner. You must provide their full legal name and SSN or ITIN. (Note: the responsible party must be a real person, not another entity.)
Review and submit
Review all entries carefully. Once submitted, you cannot edit your application — you'd have to contact the IRS to make corrections.
Download your EIN confirmation letter
After submission, you'll see your EIN on screen immediately. Download the confirmation letter (CP 575) right away — you'll need it to open bank accounts and for your records. The IRS will also mail a physical copy.
Other ways to apply for an EIN
If you can't use the online application (e.g., your business is based outside the US, or the online system isn't available), here are your other options:
| Method | Time | How | Best For |
|---|---|---|---|
| Online (recommended) | Instant | IRS.gov online assistant | Most US-based businesses |
| Fax | 4 business days | Fax Form SS-4 to IRS | Non-US businesses, prefer paper |
| 4–5 weeks | Mail Form SS-4 to IRS | If fax not available | |
| Phone | Immediate | Call IRS: (267) 941-1099 (international) | International applicants only |
What to do after getting your EIN
- Open a business bank account — bring your EIN + LLC formation documents (Articles of Organization) to the bank
- Apply for business licenses — most state/local licenses require your EIN
- Set up payroll — if you have employees, register with your state for payroll taxes using your EIN
- Set up accounting software — enter your EIN into QuickBooks, Wave, or your preferred software
- Apply for business credit cards — use your EIN (not personal SSN) to start building business credit
- File your first tax return — you'll use your EIN on all federal and state business tax filings
- Apply for an S-Corp election — if you elected S-Corp status, file IRS Form 2553 within 75 days of formation
Common EIN mistakes to avoid
1. Applying before your LLC is formed. Your EIN application asks for the date your business was formed. Apply after you've filed your Articles of Organization with the state.
2. Using a third-party paid service. Sites like "EINForm.com" or similar charge $50–$300 to apply for an EIN. These are middlemen — do it yourself at IRS.gov for free in 15 minutes.
3. Applying with wrong entity type. If you select "Sole Proprietor" when you've formed an LLC, your tax filing could get complicated. Select the correct entity type.
4. Losing your CP 575 letter. The IRS only issues CP 575 once. If you lose it, you can request an EIN verification letter (147C) by calling the IRS. Save your letter digitally and physically.
5. Using your personal SSN for business. Once you have an EIN, use it — not your SSN — for business transactions to protect your personal identity.