An EIN is free. The IRS charges nothing and issues most EINs immediately through its online application. Services that charge a fee are filling in the same form on your behalf. There is no expedited tier, no premium queue, and nothing a paid service can obtain that you cannot.
Who needs one
You must have an EIN if any of these apply:
- You have employees.
- Your business is a corporation or a partnership.
- You file employment, excise, or alcohol, tobacco and firearms returns.
- You withhold taxes on income, other than wages, paid to a non-resident alien.
- You have a Keogh plan.
- You are involved with certain trusts, estates, non-profits or farmers' cooperatives.
A single-member LLC with no employees is the common edge case. Federally it is disregarded, and the owner may use their Social Security number — but an EIN is usually worth getting anyway:
- Most banks require one to open a business account in the entity's name.
- It keeps your Social Security number off W-9s given to clients.
- Clients issuing 1099s will ask for it.
- If you later hire or elect S-corp treatment, you will need one regardless.
How to apply
-
Form the entity first
If you are forming an LLC or corporation, complete that filing before applying, so the legal name on the EIN matches the state record exactly. Mismatches cause friction at the bank later.
-
Have the responsible party's details ready
The IRS requires a responsible party — a natural person who controls or manages the entity — with their SSN or ITIN. It cannot be another entity.
-
Apply online at IRS.gov
The online assistant is the fastest route and issues the number at the end of the session. It is available during published hours rather than around the clock, and the session times out after a period of inactivity, so have your details to hand.
-
Save the confirmation letter
Download and store the CP 575 notice immediately. The IRS does not reissue it, and banks and payroll providers routinely ask for it. If you lose it you can request a 147C letter instead, which is slower.
The online application requires one. International founders without either apply by fax or post using Form SS-4, which takes considerably longer. This is a genuine case where a service that handles the filing may be worth paying for — but the EIN itself is still free.
What an EIN does not do
What it is
- A federal tax identification number
- What you file employment and business returns under
- What banks use to open a business account
- Free and permanent
What it is not
- A business licence or permission to trade
- A legal entity — it does not create or replace one
- Liability protection of any kind
- A state tax registration, which is separate
The confusion is common enough to be worth stating plainly: people obtain an EIN, believe they are "registered", and discover later they still need a state or city licence. Those are different layers administered by different bodies.
When you need a new one
EINs do not expire and are not reused. You generally need a new one when the entity fundamentally changes — incorporating a sole proprietorship, a change in ownership structure that creates a new entity, or certain bankruptcies. Changing your business name or address, or opening additional locations under the same entity, does not require a new EIN. The IRS publishes a specific list by entity type.
Questions owners ask
How long does it take?
Online, you normally have the number at the end of the session. By fax or post it is substantially longer. Note that a brand-new EIN can take a couple of weeks to become usable for some electronic filings.
Can I have more than one?
One per entity. If you genuinely run separate legal entities, each has its own. A single entity with several DBAs uses one EIN for all of them.
I lost my EIN. How do I find it?
Check your CP 575 notice, previous tax returns, or your bank — they hold it on file. Failing that, the IRS Business and Specialty Tax Line can provide a 147C letter to an authorised person.