EIN: What It Is and How to Get One Free From the IRS

An Employer Identification Number (EIN) is a nine-digit federal tax ID — format XX-XXXXXXX — that the IRS assigns to a business, the way a Social Security number identifies a person. Despite the name, it isn't just for employers, and despite an entire industry suggesting otherwise, it is free, directly from the IRS, in about ten minutes.

Who actually needs one

You must have an EIN if your business has employees, operates as a corporation or partnership, files certain excise or employment tax returns, or has a multi-member LLC. A single-member LLC with no employees can technically use the owner's SSN for federal taxes — but nearly everyone gets an EIN anyway, for two practical reasons: banks require one to open a business account, and using an EIN keeps your SSN off W-9 forms you hand to clients.

Note the order of operations: form the entity first, then get the EIN. The IRS application asks for the legal name and formation state of the entity, so the state formation filing comes first.

How to get one free

Go to the IRS's online EIN Assistant at irs.gov (search "apply for an EIN online" — make sure the domain is irs.gov). The tool is available Monday–Friday, roughly 7 a.m.–10 p.m. Eastern.
The responsible party — generally the person who controls the entity — provides their name and SSN or ITIN. One EIN per responsible party per day is the IRS's limit.
Answer the entity-type and purpose questions. Completing the application in one sitting matters: the session expires after 15 minutes of inactivity.
You receive the EIN immediately and can download the confirmation letter (CP 575). Save that PDF — banks ask for it, and the IRS doesn't reissue it (a replacement 147C letter takes a phone call).

International founders without an SSN/ITIN can't use the online tool but can get an EIN free by filing Form SS-4 by fax (typically 1–2 weeks) or mail (4+ weeks).

The paid-service trap

Search results for "get an EIN" are crowded with third-party sites charging $50–$300 for "EIN filing services." They fill out the same free form you would, sometimes with lookalike government styling. This is the clearest example of a broader pattern in business formation: paid intermediaries selling free government processes. There are legitimate reasons to pay for help — an accountant handling everything, an international founder navigating Form SS-4 — but the number itself never costs money.

Common snags

Two errors account for most EIN headaches. First, a mismatch between the entity name on the application and the name the state approved — the IRS matches against the exact legal name, so apply after your formation is accepted, not while it's pending. Second, losing track of the responsible party: if that person changes, the IRS expects Form 8822-B within 60 days. Neither problem costs money to fix, but both cost weeks.

After you have it

The EIN goes on your bank account application, W-9s, payroll setup, and federal returns. One nuance worth knowing: an EIN does not replace state-level registrations. State tax accounts, sales-tax permits, and the annual state filings that keep your entity alive are all separate systems. And if the entity's structure changes — a sole proprietorship incorporates, a single-member LLC adds a partner — the IRS often requires a new EIN, so check the IRS's "Do You Need a New EIN" page when your structure shifts. For anything beyond the plain-vanilla case, a CPA is the right stop; this guide is general information, not tax advice.