EIN (tax ID number) for a new business: what it is and when you need one
Quick answer
An EIN (employer identification number) is a free, 9-digit federal tax ID for your business, formatted like 12-3456789[3]. You get it straight from the IRS, online, usually in a single sitting[1].
Do you need one? If you're a solo freelancer with no employees, often not: you can keep using your Social Security number. You do need one if you hire employees, run an LLC, partnership or corporation, or owe employment, excise or alcohol, tobacco and firearms taxes[2].
And it costs $0. Always. The IRS puts it bluntly: "You never have to pay a fee for an EIN."[1]
This is general information from IRS sources, not tax or legal advice. Rules have exceptions, especially for trusts, estates and international applicants. Check with a CPA or enrolled agent if your situation is unusual.
So what is an EIN, really?
Think of it as a Social Security number for your business. The IRS assigns EINs to sole proprietors, corporations, partnerships, estates, trusts and other entities "for tax filing and reporting purposes," and the details you give when you apply set up your business tax account[3].
People call it a lot of things. Tax ID. Federal tax ID. FEIN. Employer ID. Same number.
The "employer" in the name trips people up, because you don't need employees to have one. Plenty of one-person LLCs have an EIN and no staff at all.
Do you need an EIN for your business?
Here's the IRS's own list. You need an EIN if you have employees, will pay employment, excise or alcohol, tobacco and firearms taxes, or withhold tax on non-wage income paid to a non-resident alien. You also need one to operate a partnership, an LLC, a corporation, a tax-exempt organization and a handful of other entities[2].
Notice who's missing from that list? The plain sole proprietor with no staff. If that's you (say you're a freelance copywriter billing a few clients from your kitchen table), the IRS doesn't require an EIN for federal tax purposes. Your SSN does the job.
But "not required" isn't the same as "pointless." The IRS says that even if you don't need an EIN federally, "you can still request one for banking or state tax purposes"[2]. Some banks want one for a business account. And when clients send you a Form W-9, it asks for your taxpayer identification number so they can report what they paid you[5]. Would you rather type your SSN onto a form for every new client, or a business number? Honestly, a lot of freelancers get an EIN for that reason alone. It's free and takes minutes, so the downside is tiny.
One more thing for sole proprietors. You generally need just one EIN, no matter how many businesses or trade names you run as a sole proprietorship. If you later incorporate or take on a partner, you'll need a new one[3].
A note on single-member LLCs
This is where it gets a little fiddly. For income tax, a one-owner LLC is usually a "disregarded entity," meaning its income goes on your own return, typically Schedule C[3]. Even so, the IRS lists LLCs among the entities that need an EIN, and the SS-4 instructions say a disregarded entity must use its own name and EIN for employment taxes and certain excise taxes[2][3]. If you've formed an LLC, just get the EIN. It's the clean option.
And form the LLC first. The IRS says to register your entity with the state before you apply, or the application may be delayed[1].
How do you apply for an EIN? (Spoiler: online, for free)
If your business is based in the US, the online application is the way to go. You answer questions, submit, and if it's approved the IRS issues your EIN immediately[1]. A few quirks worth knowing before you start:
You have to finish in one session, since you can't save and come back. It times out after 15 minutes of inactivity, so don't wander off to make coffee halfway through. The tool keeps office-ish hours too: Monday to Friday 6 a.m. to 1 a.m. Eastern, Saturday 6 a.m. to 9 p.m., and Sunday 6 p.m. to midnight. And you can get only one EIN per responsible party per day[1].
What you'll need: your entity type and the Social Security number or ITIN of the "responsible party," the person who controls the business[1]. Type the business name exactly as it appears on your formation documents. The IRS only accepts letters, numbers, hyphens and ampersands, so "Jones.Com" becomes "Jones Dot Com" or "Jones Com"[2].
| Method | Cost | How fast | Good to know |
|---|---|---|---|
| Online at IRS.gov | $0 | Immediately, if approved | One session; times out after 15 minutes of inactivity |
| Fax Form SS-4 | $0 | About 4 business days | Fax 855-641-6935; include your fax number |
| Mail Form SS-4 | $0 | Approximately 4 weeks | IRS, Attn: EIN Operation, Cincinnati, OH 45999 |
| Phone | $0 | During the call | International applicants only: 267-941-1099 |
| Paid 'EIN filing' website | Whatever they charge | Depends on them | The IRS says you never have to pay a fee for an EIN |
Can't use the online tool? Fax Form SS-4 and you'll usually get the EIN back in about 4 business days. Mail takes approximately 4 weeks[2], and the SS-4 instructions suggest mailing at least 4 to 5 weeks before you'll need the number[3]. Phone applications are only for international applicants now[3].
Why would anyone pay for an EIN?
Good question. Search "get an EIN" and you'll find sites that look official, ask the same questions the IRS asks, and charge you for the privilege. Some of them may well file the form correctly. But you're paying for something the IRS does for free, and handing your SSN to a middleman along the way.
The IRS warns about this on the application page itself: "Beware of websites that charge for an EIN. You never have to pay a fee for an EIN."[1] Check the address bar. The real application lives on irs.gov.
(If an accountant or lawyer is already forming your company and wants to handle the EIN as part of the job, that's different. You're paying for their time and advice, not for the number.)
You've got the number. Now what?
Print or save the confirmation letter. The online tool tells you to[1], and future-you will be grateful at tax time. If you ever lose track of the number, the IRS can confirm it later through an entity transcript or by sending Letter 147C[2].
You can use your EIN right away for most things: opening a bank account, applying for business licenses, filing a paper return. For a few, like e-filing a return or making electronic tax deposits, the IRS says to allow up to 2 weeks[2].
Return due before your EIN arrives? Write "Applied For" and the date you applied where the number goes. Don't put your SSN in the EIN box[3].
And keep the details current. Changes to your responsible party have to be reported within 60 days on Form 8822-B[3]. A new business name or address? You don't need a new EIN. A change of ownership or structure usually does mean a new one[4].
That's it. Really. Ten free minutes on irs.gov is the cheapest admin task you'll do all year.
If you're hiring, the next numbers to understand are payroll taxes. The Employee Cost Calculator shows what a hire really costs, and our self-employment tax guide covers the 15.3% you pay on your own profit. Still deciding what to charge? Start with how to set a freelance hourly rate. And when tax season comes round, here's what a tax preparer costs.
Frequently asked questions
How much does an EIN cost?
Nothing. The IRS issues EINs free of charge and says you never have to pay a fee for one. Sites that charge are third parties, not the IRS (checked Oct 2026).
Do I need an EIN as a sole proprietor?
Not if you have no employees and don't owe employment, excise or ATF taxes; you can use your Social Security number. You can still get an EIN for banking or state tax purposes, and many freelancers do so they don't have to share their SSN.
How long does it take to get an EIN?
Online, the IRS issues it immediately if your application is approved. By fax it takes about 4 business days, and by mail approximately 4 weeks (checked Oct 2026).
Does a single-member LLC need an EIN?
The IRS lists LLCs among the entities that need an EIN, and a disregarded single-member LLC must use its own EIN for employment and certain excise taxes. Form the LLC with your state first, then apply.
Do I need a new EIN if I change my business name?
No. A name or address change doesn't need a new EIN. You generally need a new one when the ownership or structure changes, for example when a sole proprietorship incorporates or takes on a partner.
Can I get an EIN on the weekend?
Yes, within the online tool's hours: Saturday 6 a.m. to 9 p.m. and Sunday 6 p.m. to midnight Eastern time. On weekdays it runs from 6 a.m. to 1 a.m. the next day.
Sources
All facts come from IRS pages and forms, checked Oct 2026. IRS procedures and hours change, so check irs.gov before you apply. See our editorial policy, methodology and affiliate disclosure.
- [1] IRS: Get an employer identification number (online application): https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number (checked Oct 2026)
- [2] IRS: Employer identification number (who needs one, ways to apply): https://www.irs.gov/businesses/employer-identification-number (checked Oct 2026)
- [3] IRS: Instructions for Form SS-4 (Rev. 12/2025): https://www.irs.gov/instructions/iss4 (checked Oct 2026)
- [4] IRS: When to get a new EIN: https://www.irs.gov/businesses/small-businesses-self-employed/when-to-get-a-new-ein (checked Oct 2026)
- [5] IRS: About Form W-9: https://www.irs.gov/forms-pubs/about-form-w-9 (checked Oct 2026)