What Is an EIN and Does Your Business Need One?
An EIN (Employer Identification Number) is a nine-digit federal tax ID that the IRS assigns to businesses and other entities. Your business needs one if it has employees, is a corporation or multi-member LLC, or files certain federal tax returns. Many other businesses get one anyway for banking and privacy.
What an EIN is
An EIN identifies a business to the IRS in roughly the same way a Social Security number identifies a person. It is written in the format XX-XXXXXXX: two digits, a hyphen, then seven digits. You may also see it called a Federal Employer Identification Number (FEIN) or a federal tax ID number. They are the same thing.
Despite the name, you don't need employees to get one. Sole proprietors, LLCs, corporations, partnerships, nonprofits, estates, and trusts can all have EINs. Generally, an EIN stays with an entity for as long as it exists and is not reused for another business.
Does your business need an EIN?
The IRS sets the rules, and they depend on how the business is organized and taxed. In general, you need an EIN if your business:
- Has employees, or plans to hire them
- Is a corporation, including an S corporation
- Is a partnership, or a multi-member LLC taxed as a partnership
- Is an LLC that has chosen to be taxed as a corporation
- Files employment, excise, or certain other federal tax returns
- Withholds tax on certain payments to nonresident aliens
- Has a Keogh or similar retirement plan
- Is a trust, estate, or nonprofit organization, in most cases
The IRS publishes the current list on its get an EIN page. If your situation is unusual, check with an accountant.
Single-member LLCs and sole proprietors
A single-member LLC with no employees and no excise tax obligations is usually treated as a "disregarded entity" for federal income tax. That means its income goes on the owner's personal return, and the IRS may not require a separate EIN for income tax purposes. A sole proprietor with no employees is in a similar position and can often use their own Social Security number.
Many of these owners get an EIN anyway, for practical reasons:
- Banking. Banks commonly ask for an EIN to open a business account, especially for an LLC.
- Privacy. Clients who pay you may ask for a Form W-9 with your taxpayer ID. Giving them an EIN means you don't have to hand out your Social Security number.
- Vendors and licenses. Suppliers, payment processors, and some state or local agencies may ask for one.
- Growth. If you later hire someone, you will already have one.
Note that an LLC may still need an EIN for some state or employment tax purposes even when it is disregarded for federal income tax. An accountant can tell you what applies to you.
How to get an EIN
Getting an EIN from the IRS is free. You can apply in these ways:
- Online. The IRS offers an online application on irs.gov. It is usually the fastest option, and if the application goes through, you typically get your number when you finish. The online system has eligibility requirements and is available only during set hours.
- By fax or mail. Fill out Form SS-4 (Application for Employer Identification Number) and send it to the IRS. Fax is generally faster than mail. Check the IRS website for current processing times, as they vary.
- International applicants. Applicants with no legal residence or principal place of business in the U.S. have a separate option described on the IRS website.
You will need basic information: the legal name of the entity, its type, the reason you are applying, the business address, and the name and taxpayer ID of the "responsible party." That is the person who ultimately owns or controls the entity.
If you are forming an LLC or corporation, file your formation document with the state first. Then apply for the EIN, using the exact legal name shown on the state record. You can confirm that name with a business entity lookup.
Watch out for fee-charging websites. Many private sites look official and charge a fee to "file" your EIN application. They submit the same free form on your behalf. To avoid paying for something that costs nothing, apply directly through irs.gov and check that the web address ends in .gov.
What an EIN is not
People sometimes assume that getting an EIN sets up their business. It doesn't. Keep these distinctions in mind:
- It does not create or register your business. An LLC or corporation is formed by filing with a state business registry, not by getting an EIN. See our list of state registries.
- It is not a business license. Cities, counties, and states issue licenses and permits separately.
- It is not a state tax ID. Many states issue their own numbers for sales tax, payroll withholding, or unemployment insurance. You register for those with the state revenue or labor department, and the requirements vary by state.
- It does not reserve your business name or give you any rights to it. See how to check LLC name availability.
EIN versus state entity number
An EIN is issued by the IRS for federal tax identification. An entity number, file number, or control number is assigned by the state filing office to identify its business record. They are not interchangeable. California's search instructions, for example, use the state-assigned entity number or entity name, not the EIN.
If a registry search asks for an entity number, use the number on the state filing or record. If you have only an EIN, request the legal name and formation state from the business, then look up that entity. Getting an EIN does not itself create a state registry entry. Some states do offer a separate EIN search: Florida lists FEI/EIN among its search options.
Common EIN questions
Can I look up another company's EIN?
There is no public IRS database of EINs for businesses in general. You can often find a company's EIN on documents it gives you, such as a W-9 or an invoice. Tax-exempt organizations' EINs are generally shown in the IRS's public search tool for exempt organizations.
What if I lose my EIN?
Check your IRS confirmation notice, old tax returns, bank records, or any license applications where you used it. If you still can't find it, the IRS can provide it to an authorized person after verifying their identity.
Do I need a new EIN if my business changes?
Sometimes. Changing your business name or address generally does not require a new EIN, but you should notify the IRS. Changing your structure, such as converting a sole proprietorship to an LLC or corporation, often does. The IRS website explains which changes require a new number, and an accountant can help you decide.
Can I cancel an EIN?
An EIN cannot be reassigned, but the IRS can close the business account associated with it if you never used it or the business has shut down. Follow the IRS instructions for closing a business account.
This guide is general information, not legal or tax advice. Rules differ by state and change over time; check the official state or IRS source, and talk to an attorney or accountant about your situation.