What is an EIN and do I need one?

An EIN (Employer Identification Number) is a 9-digit number assigned by the IRS to identify your business for tax purposes — it's the business equivalent of a Social Security number. You need an EIN if you: have employees; operate as a partnership, LLC, or corporation; file excise, employment, or alcohol/tobacco/firearms tax returns; withhold taxes on non-wage income to non-residents; or have a Keogh plan. Sole proprietors with no employees can use their SSN, but most financial advisors recommend getting an EIN anyway to protect your SSN and establish business credit.

Apply for a free EIN directly through the IRS at IRS.gov. Online applications for domestic businesses are processed immediately — you receive your EIN at the end of the session. Alternatively, apply by fax (Form SS-4, processed in 4 business days) or mail (4–5 weeks). Only apply through IRS.gov — third-party websites charge $50–$300 for this free service. You need to have a valid SSN or ITIN to apply as the responsible party. You can only apply for one EIN per day.

When do I need a new EIN?

You need a new EIN if: you change your business entity type (sole proprietor to LLC, partnership to corporation); your LLC elects to be taxed as a corporation; you purchase or inherit an existing business as a going concern; you operate as a subsidiary that becomes a separate entity. You do NOT need a new EIN if: you change your business name; you change your business address; you add a DBA (doing business as); a corporation changes its state of incorporation; you change from one type of corporation to another.

Can I open a business bank account without an EIN?

Sole proprietors can open some business bank accounts using their Social Security number instead of an EIN. However, most banks prefer or require an EIN for business accounts. LLCs and corporations always need an EIN to open a business bank account. Getting an EIN before approaching banks is the easiest path — the application is free and immediate online. Having an EIN also lets you apply for business credit cards and lines of credit without using your SSN, which helps protect your personal identity.

How to Get an EIN Number in 2026: Apply Free in 15 Minutes

An EIN is one of the first things you need after forming your business — it’s required to open a business bank account, hire employees, file business taxes, and build business credit. The IRS issues EINs for free online in under 15 minutes. Here’s everything you need to know.

What Is an EIN?

An Employer Identification Number (EIN) — also called a Federal Employer Identification Number (FEIN) or Federal Tax ID — is a 9-digit number in the format XX-XXXXXXX, issued by the IRS to identify your business for federal tax purposes.

Think of it as your business’s Social Security number. Just as your SSN identifies you to the IRS as an individual taxpayer, your EIN identifies your business.

Despite the word “employer” in the name, you don’t need to have employees to get an EIN. LLCs, S-corps, partnerships, and sole proprietors with no employees can and should get one.

Who Needs an EIN

Definitely required:

Multi-member LLCs (taxed as partnerships by default)
Single-member LLCs (often required by banks even if not IRS-required)
S-corporations and C-corporations
Partnerships
Any business with employees
Businesses with Keogh plans or other retirement plan types requiring an EIN
Businesses that must file excise tax returns
Nonprofit organizations

Optional but strongly recommended:

Sole proprietors with no employees — the IRS allows you to use your SSN, but using an EIN protects your SSN from unnecessary exposure and is required by many banks and vendor credit applications

How to Apply for a Free EIN

The only legitimate free source is IRS.gov. Third-party services that charge $50–$300 to “file for” your EIN are unnecessary — they just submit the same free form to the IRS and mark it up.

Online Application (Fastest — Immediate)

Go to irs.gov and search “EIN online application” or navigate to: Businesses > Small Businesses & Self-Employed > Apply for an EIN
Select your entity type (sole proprietor, LLC, partnership, corporation, etc.)
Answer questions about your business and reason for applying
Designate a “responsible party” — a person who controls, manages, or directs the entity (must have an SSN or ITIN)
Review and submit — your EIN is issued immediately at the end of the session
Print or save the confirmation — this is your official IRS EIN assignment letter (also known as CP 575)

Limitations: Online applications are only for businesses with a US principal place of business. Applications are processed Monday–Friday 7am–10pm Eastern. One EIN per day per responsible party.

By Fax (4 Business Days)

File Form SS-4 by fax. Find the correct fax number on IRS.gov based on your state. Write your fax number on the form so the IRS can fax back your EIN.

By Mail (4–5 Weeks)

Send Form SS-4 to the IRS. Slowest option — use only if you have no time pressure.

By Phone (International applicants only)

US-based businesses cannot apply by phone; international applicants call 267-941-1099.

What to Do With Your EIN

Once you have your EIN:

Open a business bank account — bring your EIN, business formation documents (LLC articles of organization or corporation articles of incorporation), and your government-issued ID
Apply for a business credit card — an EIN keeps your personal SSN off business credit applications
Register for state taxes — most states have a separate employer registration process if you’ll have employees
Set up payroll — if you’ll hire employees, you’ll use your EIN for federal payroll tax deposits and W-2 filings
Start building business credit — EIN is required for D&B D-U-N-S number and Experian Business credit profile
Store it safely — your EIN is on your CP 575 letter; also record it with your business formation documents

EIN vs. D-U-N-S Number

New business owners often confuse these:

Identifier	Issued By	Purpose	Free?
EIN (FEIN)	IRS	Federal tax identity	Yes
D-U-N-S Number	Dun & Bradstreet	Business credit reporting	Yes
State Tax ID	State government	State tax filing	Yes (usually)
Business license number	City/county	Operating legally	Varies

You need the EIN first (to provide to D&B when registering for a D-U-N-S number). Both are free and necessary for building your business’s financial foundation.

Replacing a Lost EIN

If you’ve lost your EIN, look for it on:

Your CP 575 confirmation letter (IRS mailed this when your EIN was issued)
A previously filed tax return (Form 1120, 1065, or Schedule C if sole proprietor)
Your business bank account statements or previous loan applications

If you still can’t find it, call the IRS Business & Specialty Tax Line at 800-829-4933 (Monday–Friday 7am–7pm local time). They can verify your EIN over the phone after confirming your identity.

How to Start an LLC — form your LLC before applying for your EIN
LLC vs. S-Corp — which structure is right for your business
How to Build Business Credit — next step after getting your EIN
Business Formation Hub — complete guide to starting your business

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy