Starting a business — your EIN
How to get an EIN for free, directly from the IRS
An Employer Identification Number never costs anything. The IRS issues it online, in one sitting, the moment the application is approved. A website that charges you for one is filling in the same free application on your behalf.
An EIN (Employer Identification Number) is the federal tax ID for a business. The IRS issues it free of charge, and its online application gives you the number immediately once it is approved. The IRS's own words: you never have to pay a fee for an EIN. The only official place to apply is irs.gov.
What an EIN is, and who needs one
An EIN is a nine-digit number, written like 12-3456789, that the IRS uses to identify a business for federal tax purposes. It does for the company roughly what a Social Security number does for a person.
The IRS says you generally need one to hire employees, to operate as a partnership or a corporation, to pay certain employment, excise or sales taxes, and when you change your business's structure or ownership. A limited liability company with more than one member is treated as a partnership by default, so it needs one.
A single-member LLC with no employees can often use its owner's number for federal income tax. Many get an EIN anyway, because banks, payment processors and clients commonly ask for one, and it keeps the owner's Social Security number off W-9s and invoices. The IRS will issue one even when you do not strictly need it.
Your state may give you separate numbers of its own, for sales tax or unemployment tax for example. Those are state registrations, not your EIN.
How to apply, for free
Form your company with your state first. The IRS asks corporations and LLCs to register with the secretary of state before applying, and says an application made before that may be delayed. Use the legal name exactly as the state has it.
Open the IRS page "Get an employer identification number" and choose to apply online. Check the address bar before you type anything: the official application is on irs.gov.
Have ready: the business's legal name and address, its entity type, and the name and Social Security number or ITIN of the responsible party, the person who ultimately owns or controls the business.
Finish in one sitting. The application cannot be saved for later, and it expires after 15 minutes of inactivity. The IRS lists the hours the online tool is open on the same page.
Print or save the confirmation letter before you close the page. It is the IRS's notice of your number, and banks often ask to see it.
If the business's principal place is outside the United States, or the responsible party has no Social Security number or ITIN, apply with Form SS-4 by phone, fax or mail instead. It is still free.
Why so many websites charge for it
Search for how to get an EIN and many of the first results are private services with official-looking names, seals and forms. They charge a fee to submit the free IRS application for you.
The number they get you is real. But you are paying for something the IRS gives away, and you are giving a stranger your Social Security number to do it.
The IRS warns about exactly this on its own EIN page: beware of websites that charge for an EIN.
If you already paid a service, your EIN is still valid. You do not need to apply again.
What to do once you have it
Keep the confirmation letter with your formation documents, where you can find it when a bank, a client or your accountant asks.
Use the EIN, not your Social Security number, on the W-9s you give clients and when you open the business bank account.
If you lose the letter, you do not need a new EIN. The IRS can confirm the number you already have, for example with Letter 147C through its business and specialty tax line.
If the business's mailing address, location or responsible party changes, tell the IRS on Form 8822-B. The IRS says a change of responsible party must be reported within 60 days.
Some changes, such as turning a sole proprietorship into a corporation, generally need a new EIN. The IRS publishes the list of which changes do.
What XOsign does about it
- Never charges for an EIN and never applies for one on your behalf. This page sends you to the IRS.
- Keeps your EIN confirmation letter with the rest of your company's documents, so it is there when someone asks for it.
- Sends W-9 requests and other documents for electronic signature, and keeps the signed copy with its audit trail.
- Explains what a document says in plain language. XOsign never decides anything for you and never gives legal or tax advice.
What to ask an attorney
- Should my business be taxed the default way for the entity I formed, or elect a different treatment?
- Does my single-member LLC need its own EIN for what I plan to do?
- Who should be named as the responsible party?
- Which state tax registrations does my business need, and when?
Frequently asked questions
Does it cost anything to get an EIN?
No. The IRS issues EINs free of charge, and says so on its own EIN page. Sites that charge a fee are private services submitting the same free application for you.
How long does it take to get an EIN?
Online, the number is issued immediately once the application is approved, in a single sitting. Applying by fax or mail with Form SS-4 takes longer.
Should I form my LLC before I apply for an EIN?
Yes. The IRS asks corporations and LLCs to form with the state first, and says an application made before that may be delayed. Apply with the legal name exactly as the state filed it.
XOsign is not a law firm and this page is not legal advice. It explains, in plain English, what the law generally requires so you can have a better conversation with your own attorney. Laws differ by state and change over time, and only a licensed attorney who knows your situation can tell you what to do about yours.
Keep your company's documents in one place
Open the sample document to see how XOsign reads, signs and keeps a document, and what the signed record contains.