How to Get an EIN Number for Free (and When Your LLC Needs One)

An EIN (Employer Identification Number) is your business's federal tax ID. Banks, payment processors, states and clients ask for it, and you will use it on tax returns for years. Getting one is free and, for most US-based founders, takes only minutes online. This guide explains who needs an EIN, how to apply, and the decisions to make around it.

What an EIN is

An EIN is a nine-digit number issued by the IRS to identify a business entity for tax purposes, in the format 12-3456789. Think of it as a Social Security number for your business. It does not expire, and it stays with the entity for life.

Who needs an EIN

You generally need an EIN if your business:

• Has employees
• Is a corporation or a multi-member LLC (partnership)
• Files employment, excise, or alcohol, tobacco and firearms tax returns
• Withholds tax on income paid to non-resident aliens
• Has a Keogh plan or certain retirement plans
• Is a trust, estate or non-profit in many cases

A single-member LLC with no employees and no excise taxes is treated by default as a "disregarded entity" for federal income tax, and the owner may use their own SSN for income tax. In practice, most single-member LLCs still get an EIN because banks, Stripe, PayPal, states and clients usually ask for one, and it keeps your SSN off W-9 forms.

Before you apply: form the entity first

If you are forming an LLC or corporation, file with your state first and wait for approval. Your EIN application asks for the legal name and formation date, and applying before the entity exists can create mismatches that cause problems with banks and processors.

Typical LLC formation steps:

1. Choose your state (usually where you operate).
2. Check name availability with the Secretary of State.
3. Appoint a registered agent with an address in that state.
4. File articles of organisation (certificate of formation) and pay the filing fee, which ranges from about $50 to $500 depending on the state.
5. Write an operating agreement.
6. Apply for the EIN.
7. Open a business bank account.
8. Register for state taxes and local licences as required.

How to apply online (US applicants)

The IRS online application is the fastest route for applicants with a valid SSN or ITIN.

1. Go to IRS.gov and search "Apply for an EIN online". Use the official IRS site only.
2. Check the hours: the online application has operating hours on weekdays (Eastern time), so plan around them.
3. Choose your entity type: sole proprietor, LLC, corporation, partnership, non-profit and others.
4. For an LLC, enter the number of members and the state where it was formed.
5. Provide the responsible party details: the person who controls the entity, with their SSN or ITIN.
6. Enter the business name, address, start date, industry and whether you expect employees.
7. Review carefully, then submit.
8. Download and save the EIN confirmation letter (CP 575) immediately. Banks often ask for it.

The session times out after inactivity, so have your information ready.

Warning: Many websites look official and charge a fee to "file your EIN". The IRS never charges for an EIN. Use IRS.gov.

International founders: Form SS-4

If the responsible party does not have an SSN or ITIN, the online application is not available. Instead:

• Complete Form SS-4, leaving the SSN/ITIN line blank or as instructed for foreign applicants.
• Fax or mail it to the IRS address for international applicants listed in the Form SS-4 instructions, or call the IRS international line (267-941-1099, not toll-free) during its business hours.
• Fax applications usually return an EIN faster than mail.

Make sure the company name and formation details match exactly what your state issued.

LLC tax classification

When you get your EIN, your LLC is taxed by default:

• Single-member LLC: disregarded entity; income reported on the owner's personal return (Schedule C for most active businesses).
• Multi-member LLC: partnership; files Form 1065 and issues K-1s to members.

You can elect a different treatment:

• S corporation by filing Form 2553 (eligibility rules apply, including ownership restrictions).
• C corporation by filing Form 8832.

An S corporation election can reduce self-employment tax for profitable businesses that pay the owner a reasonable salary, but it adds payroll and filing costs. Talk to a CPA before electing.

After you get the EIN

• ☐ Open a business bank account using the EIN and formation documents.
• ☐ Register for state tax accounts: sales tax, payroll withholding, unemployment insurance as needed.
• ☐ Get local business licences and any professional or trade licences.
• ☐ Set up bookkeeping from day one.
• ☐ Calendar your state's annual report or franchise tax deadline.
• ☐ Keep business and personal funds separate to protect your liability shield.

Beneficial ownership reporting

The Corporate Transparency Act introduced beneficial ownership information (BOI) reporting to FinCEN. In March 2025, FinCEN issued a rule exempting companies created in the US from BOI reporting, while certain foreign companies registered to do business in the US remain subject to it. Rules in this area have changed several times, so check FinCEN.gov for the current status when you form your company.

Mistakes to avoid

1. Paying for an EIN through a third-party site.
2. Applying before the LLC is approved.
3. Name mismatches between the state filing, EIN and bank account.
4. Losing the CP 575 letter. Save it in several places.
5. Mixing personal and business money, which can weaken liability protection.
6. Applying for multiple EINs for the same entity.

If you lose your EIN

Check your CP 575 letter, old tax returns, bank records or payroll filings. If you still cannot find it, the IRS Business and Specialty Tax Line can help an authorised person retrieve it.

Sole proprietors: should you get one?

Sole proprietors without employees can use their SSN for business taxes, but an EIN is free and useful:

• You give clients an EIN on Form W-9 instead of your SSN, reducing identity-theft risk.
• Some banks and processors prefer or require one for business accounts.
• If you hire employees later, you will need it anyway.

If you later form an LLC, the LLC may need a new EIN, because an EIN belongs to a specific entity. Changing from a sole proprietorship to an LLC or corporation generally requires a new number, while changing your business name usually does not. Check IRS guidance on when a new EIN is required.

Documents to keep together

Create a single "company records" folder, digital and backed up, containing:

• ☐ Articles of organisation and the state's approval
• ☐ Operating agreement and any amendments
• ☐ EIN confirmation letter (CP 575)
• ☐ Registered agent details
• ☐ Business licences and permits
• ☐ Bank account opening documents
• ☐ Tax elections (Form 2553 or 8832) and IRS acceptance letters
• ☐ Annual report filings and receipts

Banks, lenders, payment processors and future buyers will ask for these documents.

Your next step

If your LLC is approved, gather the formation date, responsible party details and business information, and apply on IRS.gov during the online hours. If you have not formed the LLC yet, start with your Secretary of State's website.

The full guide, Forming a US LLC & Getting an EIN, covers choosing a state, filing step by step, registered agents, operating agreements, EINs for US and international founders, banking, tax elections and annual compliance for $0.99.