An EIN (Employer Identification Number) is a free, nine-digit tax ID the IRS assigns to your business, formatted like 12-3456789. You need one if you have employees, form an LLC or corporation, or your bank requires it to open a business account. If you're a solo freelancer with no employees, you're not legally required to have one, but getting one anyway is smart, and it costs nothing.

Let's clear up the confusion, figure out whether you specifically need one, and walk through getting it in about 10 minutes.

What an EIN actually is (in plain English)

Think of an EIN as a Social Security Number for your business. Your SSN identifies you to the IRS. An EIN identifies your business. It's also called a Federal Tax Identification Number, a Federal Employer Identification Number, or just a "tax ID." Those are all the same thing.

A few quick clarifications that trip people up:

  • An EIN is not a business license. It's purely a tax identifier and doesn't give you permission to operate. You may still need a local license or permit separately.
  • An EIN is federal. Some states issue a separate state tax ID for income tax or sales tax (more below).
  • An EIN never expires and is never reused, even if you close the business.

Can I get an EIN for free, or does it cost money?

It is 100% free. The only place to get one is directly from the IRS at IRS.gov. The IRS charges nothing, ever.

This matters because many third-party sites are designed to look official and charge $75 to $300 to "file" the same free form you can complete in 10 minutes. If a site asks for payment for an EIN, close the tab. You're on the wrong site.

Do I need an EIN? (Yes/no table by situation)

The honest answer is "it depends on your structure and whether you hire." Here's the quick lookup:

Your situation EIN legally required?
Sole proprietor / freelancer, no employees No (SSN is allowed)
Single-member LLC, no employees No federally, but often needed for a bank account
Multi-member LLC (partnership) Yes
Corporation (C-corp or S-corp) Yes
You have (or will hire) any W-2 employees Yes
You file excise or employment tax returns Yes
You have a Keogh or solo 401(k) retirement plan Yes
Your bank requires it to open a business account Effectively yes

If any row applies to you, get an EIN. If none does, keep reading, because you probably still want one.

The voluntary EIN: why solo founders should get one anyway

Even if you're a one-person operation with zero legal obligation, an EIN gives you three real advantages, and it costs nothing to claim them.

  1. Privacy. Without an EIN, you hand your SSN to every client who pays you, every vendor who needs a W-9, and every platform that issues a 1099. That's your personal identity scattered across dozens of inboxes and filing cabinets. With an EIN, you give out a business number instead and keep your SSN private. This is the single best reason for a freelancer to get one.

  2. Credibility and access. Most banks require an EIN to open a true business checking account, even for sole proprietors. Business credit, payment processors, and wholesale accounts often ask for it too. Having one signals you're running a real operation.

  3. Future-proofing. The day you hire an employee, add a partner, or convert to an LLC, you'll need an EIN. Getting it now means one less scramble later.

Can a freelancer just use their SSN, and should they? You legally can, but you probably shouldn't. The privacy alone is worth the 10 minutes.

Do I need an EIN before I open a business bank account?

In practice, yes, for most account types. Banks use the EIN to set up a genuine business account in the business's name rather than a personal account with a nickname. Sole proprietors can sometimes open with just an SSN, but many banks still ask for an EIN.

Get the EIN first. It takes minutes and removes a common roadblock. When you're ready, our business bank account documents checklist covers what to bring so you're not turned away at the counter.

What information do I need to apply for an EIN?

Have these ready before you start so you can finish in one sitting:

  • The legal name and structure of your business (sole prop, LLC, corporation, partnership)
  • Your name and SSN or ITIN as the "responsible party" (the person who controls the business)
  • A US mailing address for the business
  • The reason you're applying (started a new business, hired employees, banking purposes, etc.)
  • The date your business started and your expected number of employees in the next 12 months
  • Your primary business activity (e.g., consulting, retail, food service)

Not sure about your structure yet? Sort that out first. Our guide on whether you actually need an LLC helps you decide before you apply, since your answer changes what you select on the form.

How to get your EIN free in 10 minutes (step-by-step)

The fastest route is the IRS online application. It's available weekdays, roughly 7 a.m. to 10 p.m. Eastern, and you get your EIN immediately at the end.

  1. Go directly to IRS.gov. Search "apply for an EIN online" or use the IRS link above. Confirm the URL ends in irs.gov before entering anything.
  2. Click "Apply Online Now" and read the short intro screen. The session times out after 15 minutes of inactivity and doesn't save, so have your info ready.
  3. Select your business structure (sole proprietor, LLC, corporation, partnership, etc.).
  4. Enter the responsible party's name and SSN/ITIN. This must be a real person, not another business.
  5. Enter your business address and details, the reason for applying, start date, and number of employees.
  6. Choose how to receive your confirmation letter (the CP 575). You can download the PDF immediately, which is what banks want to see.
  7. Submit. Your EIN appears on screen instantly. Save the confirmation PDF in two places before you close the window.

That's it. No fee, no waiting weeks. Once you have your EIN, it's a good time to make sure the rest of your setup is in order. Our step-by-step business registration guide lays out what comes before and after the EIN so nothing falls through the cracks.

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EIN vs. state tax ID: are they the same thing?

No, and this catches a lot of new owners. Your EIN is federal. Many states also issue a separate state tax ID (sometimes called a state employer ID or sales tax permit) for things like:

  • State income tax withholding if you have employees
  • Sales tax collection if you sell taxable goods or services

Whether you need one depends entirely on your state. States with no income tax or no statewide sales tax may not require a state ID at all for a small solo business. After you get your federal EIN, check your state's Department of Revenue or Secretary of State site for its specific requirements. The SBA's guide to federal and state tax IDs is a solid starting point.

Foreign founders: how to get an EIN without a US SSN

If you're a non-US resident or a founder without an SSN or ITIN, you cannot use the IRS online application, since it requires a US taxpayer ID for the responsible party. But you can still get an EIN. Here's the path:

  1. Download Form SS-4 from IRS.gov and complete it by hand.
  2. On the responsible party's SSN/ITIN line, write "Foreign" if you don't have one.
  3. Apply by phone or fax. International applicants can call the IRS at +1-267-941-1099 (not toll-free) to receive an EIN over the phone, or fax the completed SS-4 to the number listed in the form instructions.
  4. Allow extra time. Phone is fastest. Fax typically takes about four business days; mail can take several weeks.

You do not need a US address or a US partner to get an EIN as a foreign founder. You just can't use the online tool.

What do I do if I lose or forget my EIN?

Don't reapply. You won't be issued a second one. Instead:

  • Find your CP 575 confirmation letter or the PDF you saved when you applied.
  • Check past tax returns or any prior loan or license applications, since your EIN appears on them.
  • Call your bank, since they have it on file for your business account.
  • Call the IRS Business & Specialty Tax Line at 800-829-4933 (Monday to Friday). After verifying your identity as the responsible party, they'll read your EIN back to you.

Frequently Asked Questions

Is an EIN the same as a tax ID number?

An EIN is one type of tax ID number, the federal one for businesses. "Tax ID" is a broader term that can also mean your SSN, an ITIN, or a state tax ID. So every EIN is a tax ID, but not every tax ID is an EIN.

If I convert my sole proprietorship to an LLC, can I keep my EIN?

Usually no. The IRS generally requires a new EIN when your business structure changes, such as a sole proprietor forming an LLC or incorporating. A single-member LLC electing to be taxed as a corporation, or an LLC adding members to become a partnership, also typically needs a new EIN. When in doubt, check the IRS "Do You Need a New EIN?" page before assuming yours carries over.

Can a freelancer use an SSN instead of an EIN?

Yes, a sole proprietor with no employees can legally use their SSN on tax forms and W-9s. But using an EIN instead keeps your SSN off every client's paperwork, which is a meaningful privacy and identity-theft benefit for no cost. Most freelancers who understand this choose to get one.

How long does it take to get an EIN?

Online, it's immediate, you get the number the moment you submit. By fax it's roughly four business days, and by mail it can take several weeks. International applicants applying by phone usually receive it during the call.

Does it cost anything to get an EIN?

No. The IRS provides EINs completely free. Any website charging a fee is a third-party middleman, not the IRS. Always apply directly at IRS.gov.