An EIN comes up the moment you start a business, hire someone or open a business bank account. Here is what it is and how to get one.
What an EIN is
An Employer Identification Number, or EIN, is a nine-digit number the IRS assigns to identify a business for tax purposes. You can think of it as a Social Security number for a business.
When you need one
- You are hiring employees.
- Your business is a partnership or a corporation.
- You are opening a business bank account, which many banks require an EIN for.
- You are filing certain business tax returns.
Some sole proprietors without employees use their own Social Security number instead. The instructions for Form SS-4 explain who needs an EIN.
It should cost nothing
The IRS issues EINs for free. Be wary of sites that charge a fee to get one for you. You can apply directly with the IRS at no cost.
How to apply
The IRS online application is usually the fastest route, and it gives you the number as soon as you finish. You can also apply on paper with Form SS-4, by mail or fax, which takes longer.
What the SS-4 asks for
- The legal name of the business, and any trade name.
- A mailing address.
- The name and taxpayer ID number of the responsible party, the person who controls the entity.
- The type of entity, such as sole proprietor, partnership or corporation.
- Why you are applying, and the date the business started.
- The closing month of your accounting year, and how many employees you expect.
Keep your confirmation
After you get an EIN, the IRS sends a confirmation notice. Keep it with your business records, because banks and other agencies sometimes ask for proof of the number.
Fill in the SS-4 without uploading it
Form SS-4 opens in DocZap with its fields ready to type into, and what you enter stays in your browser. This is general information, not tax or legal advice.
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