You're finally doing it. You’ve got the business name, the logo is probably sitting in a Canva draft, and now you’ve hit that bureaucratic wall where everyone tells you that you need a "tax ID." It sounds daunting. It sounds like something that requires a high-priced lawyer or an afternoon lost in a government building smelling of stale coffee. Honestly, getting an EIN number—that’s an Employer Identification Number for the uninitiated—is probably the easiest part of starting a business, provided you don't fall for the third-party scams charging $300 for a free service.
Think of an EIN as a Social Security number for your business entity. The IRS uses it to track your tax obligations, but you’ll need it for way more than just filing returns. You want a business bank account? They'll ask for it. Want to hire your first employee? Can’t do it without those nine digits. Even if you're a solo freelancer working from your couch in pajamas, having an EIN adds a layer of professionalism and, more importantly, keeps your personal SSN off every W-9 you send to clients.
The IRS Website is Your Best Friend (And Worst Enemy)
Most people start by Googling "how to get an EIN number" and immediately click the first ad they see. Big mistake. Huge. Those are usually private filing services. They are legal, sure, but they’re charging you for something the IRS provides for free. Always look for the .gov URL. Specifically, you want the official IRS.gov application page.
The IRS website feels like a relic from 2004. It’s clunky. It’s gray. And here is the kicker: it has "operating hours." Yes, a website that sleeps. You can only apply for an EIN online from Monday to Friday, 7:00 a.m. to 10:00 p.m. Eastern time. If you try to do this on a Saturday night after a glass of wine, the site will literally tell you to come back later. It’s bizarre, but it’s the government.
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Who is the Responsible Party?
This is where people trip up. When you fill out the Form SS-4 (that’s the paper version of the application), you have to name a "Responsible Party." This must be an individual, not another business entity, unless the entity is a government agency. This person—likely you—must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
If you’re a foreign national without an SSN, you can’t use the online portal. You’ll have to go the old-school route: fax or mail. It’s slower, but it works.
When Do You Actually Need One?
You might not even need an EIN yet. If you’re a simple sole proprietorship with no employees and no plans to file excise or tobacco tax returns, you can technically just use your Social Security number. But should you? Probably not. Identity theft is a real headache. Every time you give a client your SSN, you're opening a tiny door to your personal life. An EIN keeps that door shut.
You absolutely must get one if:
- You just formed an LLC or a Corporation.
- You’re hiring employees (even just one).
- You’re opening a Keogh plan or a certain type of retirement account.
- You’ve inherited a business or purchased one that you intend to run as a new entity.
- You’re operating as a non-profit.
The IRS is very specific about "changes in ownership." If you’ve been running a solo shop and decide to bring in a partner, you’re likely creating a partnership in the eyes of the law. New entity? New EIN. Don't try to recycle the old one; the IRS systems will flag it faster than you can say "audit."
The Secret Shortcut: The Online Application
If you have your SSN or ITIN ready, the online application takes maybe fifteen minutes. It’s a dynamic interview-style form. It asks you what kind of business you are—LLC, Corporation, Sole Proprietor, etc. Then it asks why you're applying. "Started a new business" is the most common answer.
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One thing to watch out for is the "number of members" question if you're an LLC. A single-member LLC is treated as a "disregarded entity" for tax purposes by default. This confuses people. They think they need to file a separate corporate tax return. Nope. Everything usually flows through to your personal 1040, but you still use that shiny new EIN for your banking.
Once you hit submit, the system generates a PDF. Download it immediately. Save it to the cloud. Print it. Laminate it if you have to. The IRS will mail you an official copy in a few weeks, but that PDF is your golden ticket to opening a bank account today. If you lose that number before the mail arrives, getting it back involves a very long hold time on the IRS "Business & Specialty Tax Line." Nobody wants that.
Common Errors That Stall the Process
Sometimes the system rejects an application instantly. This is usually due to a "Name Control" mismatch. If the IRS records show your name as Jonathan Q. Public but you type Jon Public, the system might get cranky. It has to match your Social Security records exactly.
Another weird glitch? Address formatting. The IRS database is picky about things like "Suite" vs "#" or "Street" vs "St." If you get an error code (like Reference Number 101), it usually means there’s a conflict with a name that’s too similar to an existing business or a data mismatch. If that happens, you’re stuck calling them or mailing a paper form.
The International Dilemma
What if you aren't in the U.S. but want to start a U.S.-based business? Maybe you're a software developer in Berlin or a consultant in Tokyo. You can still get an EIN. However, the "instant" online path is closed to you.
You’ll need to fill out Form SS-4 and call the IRS international line at 267-941-1099. This isn't a toll-free number. Be prepared to wait. You can also fax the form to 304-707-9471. It’s a bit of a throwback to the 90s, but the IRS still lives and breathes by the fax machine. If you're mailing it from overseas, give it at least four to five weeks.
Avoiding the "Official-Looking" Scams
Let's talk about the mail you'll start getting. Within weeks of registering your business with the state, your mailbox will overflow with letters that look incredibly official. They’ll have eagles on them. They’ll use terms like "Compliance Division" or "Directorate of Records."
They will offer to get your EIN or "Labor Law Posters" for a fee ranging from $50 to $150. Toss them in the recycling. These are private companies scraping public data to trick new business owners. You can get your EIN for free in minutes, and most labor law posters are free downloads from the Department of Labor.
Real-World Nuance: The Banking Hurdle
Getting the EIN is one thing; using it is another. When you walk into a bank like Chase or Bank of America, they don't just want the number. They want the EIN Confirmation Letter (CP 575). That's the PDF I told you to save.
Banks are under strict "Know Your Customer" (KYC) laws. They need to see the official IRS letterhead. If you only have the number scribbled on a sticky note, they’ll send you packing. Also, make sure the name on your EIN letter matches your Articles of Organization from the state exactly. If the state says "Smith Ventures LLC" and your EIN says "Smith Ventures," the bank might flag the discrepancy. Consistency is boring, but in business filings, it’s a superpower.
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Changing Your Mind (and Your EIN)
People ask all the time if they can "cancel" an EIN. Technically, the IRS never cancels one. Once a number is assigned to an entity, it belongs to that entity forever. It’s a permanent record. However, you can "close your business account" with the IRS.
You do this by sending a physical letter to the IRS office in Cincinnati or Ogden (depending on your state) explaining why you want to close the account. You include the legal name, the EIN, the business address, and the reason. Maybe the business never launched. Maybe you decided to stick to your 9-to-5. Whatever the reason, closing the account prevents someone else from potentially using that EIN for fraudulent purposes later.
Actionable Steps to Get Your EIN Today
Don't overthink this. It’s a checklist task.
- Verify your entity status. Make sure you have already filed your LLC or Corporation paperwork with your Secretary of State. You need the official legal name and the date of formation.
- Gather your info. Have your SSN or ITIN ready, along with your physical business address (not a P.O. Box if you can help it).
- Wait for the window. Remember the 7 a.m. to 10 p.m. ET weekday rule.
- Go to IRS.gov. Use the search bar for "EIN Assistant."
- Complete the interview. It takes about 15 minutes. Double-check your spelling.
- Save the PDF. Seriously. Save it in three places.
- Notify your bank. Once you have the PDF, you can usually start the process of opening your business accounts immediately.
If you hit a snag, don't panic. The IRS isn't going to break down your door because you made a typo on an EIN application. They’ll just send a letter or reject the digital form. If you're truly stuck, a CPA or an Enrolled Agent can handle this for you, but for 95% of people, it's a DIY job that costs $0 and takes less time than a lunch break. Just stay away from the shady third-party sites, and you'll be fine.