How to Get an EIN for a New Business

Decide Whether Your Business Actually Needs One

An EIN (Employer Identification Number) identifies a business for federal tax purposes. Per the IRS, you need one if your business has employees, operates as a partnership or corporation, withholds taxes on income other than wages, or has a Keogh plan, among other specific triggers. A sole proprietorship with no employees and none of those other triggers generally isn't required to get an EIN and can use the owner's Social Security number on tax filings instead. That said, most banks require an EIN to open a business bank account, so many sole proprietors get one anyway, even when it isn't legally required.

Gather What the Application Needs

Before you apply, have ready: your business's exact legal name as filed with the state (if you formed an LLC or corporation) or your own legal name (if you're a sole proprietor), the business's mailing address, its structure, and the name and Social Security number or Individual Taxpayer Identification Number of its "responsible party," the individual who ultimately owns or controls the business. If you formed an LLC or corporation, apply only after your state approves the formation filing, since the application asks for your entity's state-approved name and formation date, and a mismatch can cause delays.

Apply Online if You Qualify

Most U.S.-based businesses can apply through the IRS's free online EIN application, available to applicants with a Social Security number or ITIN and a principal place of business in the United States. The online system typically issues the EIN immediately once you complete the application, making it by far the fastest method.

Apply by Phone, Fax, or Mail Otherwise

If you don't have a U.S. principal place of business, or don't have an SSN or ITIN, apply using Form SS-4 instead. International applicants can call the IRS directly, fax the form, or mail it to the IRS's EIN International Operation. These methods take longer than the instant online application, so apply with enough lead time if a deadline depends on having the EIN in hand.

What the Application Does Not Require

There is never a fee from the IRS for an EIN, regardless of which method you use; a third party that charges for the basic application is charging for its own assistance, not a government fee. You also don't need an attorney, accountant, or formation service to apply, since the application is built for an owner to complete directly, without a business plan or financial projections.

Save Your Confirmation Notice

Once the IRS assigns your EIN, it issues a confirmation notice, immediately online or by mail for a phone, fax, or mail application. Keep it with your permanent business records; banks, lenders, and state tax agencies will often ask to verify it.

Using the EIN Once You Have It

Use the EIN to open a business bank account, register for state taxes that require a federal ID number, and set up payroll if you hire employees. If the person who controls the business changes later, the IRS requires reporting that update on Form 8822-B within 60 days.

If You're Forming More Than One Business

The IRS limits each responsible party to one EIN per day, across every application method. If you're forming multiple entities around the same time, such as separate LLCs for different ventures, spread the EIN applications across more than one day rather than assuming you can get them all at once.

For the LLC-specific version of this process, including how the application handles LLC tax classification choices, see how to get an EIN for an LLC.

Getting an EIN Doesn't Change Your Tax Classification

Applying for an EIN asks you to indicate your business's tax classification, but getting the number itself doesn't lock that classification in permanently; changing it later, such as electing S corporation treatment, requires a separate IRS filing. Answer the classification question based on your actual current structure and plans.

A Sole Proprietor Without Employees Can Often Skip It, But Rarely Should

Even when the IRS doesn't require an EIN for a no-employee sole proprietorship, using your Social Security number on invoices and business forms instead exposes that number more than necessary. Many sole proprietors get a free EIN specifically to avoid sharing their SSN with clients or vendors, even without a legal requirement to do so.

Double-Check the Name and Address

A mismatch between the name on your EIN application and your state-approved formation documents is one of the most common reasons an application is delayed or rejected. Copy the legal name exactly as filed, including punctuation and any entity designator.

If You Lose Your Confirmation Notice

You don't need to reapply if you misplace it. You can find the EIN on a previously filed tax return, or call the IRS Business & Specialty Tax Line to verify it after confirming your identity as an authorized party for the business.

This Is Not Tax Advice

Whether your specific business needs an EIN, and which tax classification fits it, depends on facts a tax professional should review. Confirm your situation before assuming a general rule applies to your business.