Whether you’re starting a new LLC, hiring your first employee, or opening a business bank account, one of the first steps is getting an Employer Identification Number (EIN). Also known as a Federal Tax ID Number, it identifies your business to the IRS for tax purposes.
Luckily, applying for an EIN is fast, free, and easy—especially if you follow this guide.
What Is an EIN?
An Employer Identification Number (EIN) is a unique 9-digit number issued by the IRS to businesses operating in the U.S. It works like a Social Security Number but for your business.
Why Is an EIN Important?
- Required for filing federal taxes
- Needed to open a business bank account
- Necessary for hiring employees
- Often required for state licenses and permits
Do You Need an EIN?
Not every business needs an EIN, but you must get one if any of the following apply:
- You have employees
- You operate as a corporation or partnership
- You file employment, excise, or alcohol/tobacco/firearms tax returns
- You withhold taxes on income (non-wage) paid to a non-resident
- You have a Keogh plan (retirement plan for self-employed)
Sole proprietors without employees may not need one—but getting an EIN can still help separate personal and business finances.
How to Apply for an EIN: Step-by-Step
You can apply online, by mail, fax, or phone (international applicants only). The IRS recommends the online method for fastest processing.
Step 1: Prepare Your Business Information
- Legal name of your business
- Business structure (e.g., LLC, S-Corp, Sole Proprietor)
- Responsible party’s SSN or ITIN
- Mailing address and business location
Step 2: Apply Online
Visit the official IRS EIN application page:
Apply for an EIN online (IRS.gov)
The online form is available Monday–Friday, 7 a.m. to 10 p.m. Eastern Time. You’ll receive your EIN immediately after completing the application.
Step 3: Download and Save Your EIN Letter
Be sure to download or print the IRS EIN Confirmation Letter (CP 575) right away. You’ll need it for banks, payroll services, and more.
How Long Does It Take?
- Online: Instant
- Fax: ~4 business days
- Mail: 4–6 weeks
- International Phone: Call 267-941-1099
Common EIN Application Mistakes to Avoid
- Submitting multiple EIN applications for the same business
- Using incorrect entity structure
- Entering wrong SSN or ITIN for responsible party
- Failing to save your confirmation letter
Bonus: Use a Filing Service to Speed Things Up
If you’re overwhelmed by forms or setting up an LLC at the same time, consider using a professional filing service. They can handle EIN registration and more.
Recommended EIN and LLC Services (Affiliate Options):
- Incfile – Free LLC formation + EIN filing add-on
- ZenBusiness – Affordable business formation and EIN service
- Northwest Registered Agent – Privacy-focused EIN and formation packages
Final Thoughts
Getting your EIN is a crucial early step in building a legal, professional business. It opens the door to banking, hiring, and protecting your business identity.
Whether you file directly through the IRS or use a business service to assist, don’t delay this key step—it’s fast, free, and fundamental to your business success.