There are many companies online that will try to charge you $75 or $150 to get an EIN for your business. Do not pay them. Getting an EIN is completely free and takes less than 5 minutes on the IRS website.

1. What is an EIN?

An EIN stands for Employer Identification Number. Sometimes it is referred to as a Federal Tax ID Number (FEIN). You can think of an EIN as a Social Security Number, but for your business instead of for you personally.

The IRS uses this nine-digit number to track your LLC's tax reporting and payments.

2. Why You Absolutely Need One

The IRS rules state that a single-member LLC with no employees does not technically need an EIN; they can just use the owner's SSN. However, in the real world, you absolutely need an EIN for three critical reasons:

  1. Banking: 99% of banks require an EIN to open a Business Checking Account. You cannot separate your business and personal finances without one.
  2. Privacy & Security: If you don't have an EIN, you must provide your personal SSN to every client and vendor who asks for a W-9. This puts you at massive risk for identity theft. An EIN allows you to keep your SSN private.
  3. Hiring: If you ever plan to hire W-2 employees, you are legally required by the IRS to have an EIN to run payroll.

3. When to Apply for Your EIN

Timing is critical. Do not apply for your EIN until your state officially approves your LLC.

When you apply for an EIN, the IRS asks for the legal name of your entity. If you apply for the EIN first, and then the state rejects your LLC name because it is too similar to another business, you will have an EIN attached to a rejected name. You will then have to go through a complex process of writing to the IRS to update the name or cancel the EIN.

Wait until you have the stamped, approved Articles of Organization in your hand before going to the IRS website.

4. How to Apply Online (For Free)

Applying online is the fastest method. You will receive your EIN instantly at the end of the session.

  1. Go to the official IRS EIN Assistant website. (Ensure the URL ends in .gov).
  2. Click "Apply Online Now." Note that the tool is only available Monday through Friday, 7 a.m. to 10 p.m. Eastern Time.
  3. Select "Limited Liability Company (LLC)" as the type of legal structure.
  4. Enter the number of members (owners) and the state where the LLC is located.
  5. Enter the "Responsible Party" information. This is usually you, the owner. You will need to provide your Name and Social Security Number.
  6. Enter the LLC's physical address (PO Boxes are not allowed).
  7. At the end, select "Receive letter online." The screen will immediately display your new EIN and allow you to download an official PDF confirmation letter (Form CP-575).
Save the PDF Immediately

The IRS website will only show you the PDF confirmation letter once. You cannot log back in later to download it again. Save the PDF to your hard drive and print a physical copy immediately.

5. International Applicants (No SSN)

If you are an international founder without a US Social Security Number (SSN) or ITIN, you cannot use the online IRS portal. However, you can still get an EIN.

You must fill out Form SS-4 on paper. You will leave the SSN field blank and write "Foreign" instead. You must then fax or mail the form to the IRS. Because it is processed manually, it can take 4 to 8 weeks to receive your EIN via mail.