What is an EIN?
An EIN (Employer Identification Number) is a unique nine-digit number assigned by the IRS to identify your business for tax purposes. Think of it as a Social Security Number, but for your business.
The EIN is also known as:
- Federal Tax ID Number
- Federal Employer Identification Number
- Tax ID Number (TIN)
Format: XX-XXXXXXX (e.g., 12-3456789)
Who Needs an EIN?
You need an EIN if your business:
- Has employees - Required for payroll tax reporting
- Is a corporation or partnership - Required regardless of employees
- Is an LLC - Required if you have employees or elect corporate taxation
- Withholds taxes - On income paid to non-resident aliens
- Has a Keogh plan - Retirement plan requirement
- Files certain tax returns - Employment, excise, alcohol, tobacco, firearms
You Might Also Need an EIN For:
- Opening a business bank account
- Applying for business credit cards
- Filing for business licenses
- Working with wholesale suppliers
- Hiring contractors (1099 reporting)
You DON'T Need an EIN If:
- You're a sole proprietor with no employees
- You use your SSN for tax reporting
- You don't have any of the requirements above
Pro tip: Even if not required, many sole proprietors get an EIN to avoid sharing their SSN with clients and vendors.
EIN vs SSN: What's the Difference?
| Feature | EIN | SSN |
|---|---|---|
| Issued to | Businesses | Individuals |
| Digits | 9 (XX-XXXXXXX) | 9 (XXX-XX-XXXX) |
| Issued by | IRS | SSA |
| Purpose | Business taxes | Personal taxes |
| Cost | FREE | FREE |
| Privacy | Better for business | Personal identifier |
How to Get an EIN
Option 1: Apply Directly with the IRS (Free)
The IRS provides EINs at no cost. You can apply:
- Online - Immediate (Mon-Fri, 7am-10pm EST)
- Fax - 4-7 business days
- Mail - 4-6 weeks
Requirements:
- Valid SSN or ITIN (for online application)
- US address
- Responsible party information
Option 2: Use a Filing Service (Paid)
Services like EINFile.org handle the paperwork for you:
- Convenience - We prepare everything
- Speed - We know the fastest methods
- Support - We answer your questions
- Accuracy - We prevent common mistakes
Why pay for something free? The same reason you might use TurboTax instead of filling out paper forms yourself. Time, convenience, and peace of mind.
Common EIN Questions
How long does it take to get an EIN?
- Online: Immediate (you get it right away)
- Fax: 4-7 business days
- Mail: 4-6 weeks
- Through us: 24-48 hours
Does an EIN expire?
No. Once issued, your EIN is permanent. However, you may need a new EIN if:
- Your business structure changes (sole prop to LLC)
- You're bought by another company
- A corporation receives a new charter
Can I have multiple EINs?
Each legal entity needs its own EIN. So if you have multiple businesses structured as separate LLCs, each needs its own EIN.
Is my EIN public information?
Your EIN itself is not automatically public, but it may appear on public documents like:
- IRS Form 990 (nonprofits)
- Certain state filings
- Documents you share with vendors
Next Steps
Ready to get your EIN? Here's what to do:
- Decide on your business structure (LLC, Corp, etc.)
- Gather your information (SSN, business details)
- Apply for your EIN
We can help. Our service makes the process simple and handles all the paperwork for you.