What Is an EIN and How Do I Get One?
Just formed a business and wondering about your EIN? Here's a general overview of what it is and how to get one.
What an EIN actually is
An EIN (Employer Identification Number) is a nine-digit federal tax ID issued by the IRS, similar in concept to a Social Security number but for a business. It's separate from your state formation filing.
Why you'll need one almost immediately
Most banks require an EIN to open a business bank account, and you'll generally need one to hire employees, file certain tax returns, and apply for business licenses or credit, even if you don't have employees yet.
How to get one
You can apply for an EIN directly through the IRS, and for most businesses with a U.S. address, it's free and can be issued immediately online. Be cautious of third-party sites that charge a fee for something the IRS provides at no cost.
When to apply
Most businesses apply for an EIN right after their state formation is approved, since many next steps (opening a bank account, applying for licenses) depend on having one.
Single-member LLCs and EINs
A single-member LLC with no employees can technically use the owner's Social Security number for some tax purposes, but most owners get an EIN anyway to open a business bank account and keep personal and business finances clearly separate.
Frequently asked
Does getting an EIN cost money?
How long does it take to get an EIN?
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