The Employer Identification Number (EIN) — also called a Federal Tax ID — is the number the IRS uses to identify your business. It's the business equivalent of a Social Security number, and you'll need it for almost everything a business does.
What an EIN is used for
- Opening a business bank account — most banks require it.
- Hiring employees — you can't run payroll without one.
- Filing business taxes — the EIN goes on your returns.
- Getting a business credit card or loan — lenders expect it.
- Selling in some marketplaces — e-commerce platforms and state tax registrations often require it.
Do you need one?
Generally yes, and specifically yes if you:
- Hire employees.
- Operate as a corporation or multi-member partnership.
- File certain tax returns (employment, excise, etc.).
- Have a solo 401(k) or retirement plan.
Even a single-member LLC with no employees is well-advised to get one — it keeps your personal SSN off business paperwork and makes banking smoother.
How to get an EIN — and how much it costs
The IRS issues EINs for free.
- File Form SS-4 online via the IRS website — about 10 minutes, and you get your EIN immediately.
- You can also apply by fax or mail, which takes longer.
That's the whole process. No special qualifications, no waiting period, no fee.
Common EIN mistakes
- Getting an EIN before your entity is formed — you usually need your entity formation number (or at least a name and structure) to apply. Form the entity first.
- Applying for a new EIN instead of keeping one — your EIN is permanent. If your address or structure changes, you update the IRS — you don't get a new number (except for very specific ownership changes).
- Sharing it too freely — the EIN is not secret like your SSN, but treat it as sensitive business info. It appears on W-9s, invoices, and bank forms.
EIN vs. state tax ID vs. sales tax ID
Three different numbers, three different purposes:
- EIN — federal, from the IRS. Identity of the business.
- State tax ID — from your state, for state income/payroll taxes.
- Sales tax permit / resale certificate — from your state, for collecting sales tax. Not the same as the state tax ID.
You'll typically want all three once you're operating.
Common questions
Can I get an EIN if I don't have employees? Yes. The name is historical — the "Employer" part doesn't mean you must employ anyone.
Is an EIN the same as a business license? No. The EIN is a federal tax ID. Business licenses are issued by cities, states, and federal agencies based on your industry. See our business licenses guide.
Does my LLC need a separate EIN from my personal tax ID? Yes — that separation is part of what keeps your personal and business finances clean.
How fast do I get an EIN? Online, immediately. Fax takes about 4 business days; mail takes 4–6 weeks.
Get your EIN free
When you form with us, we obtain your EIN as part of the process — free, correctly timed, and filed with the right entity details.