Before you start, a quick orientation: an EIN is purely an identifier. Getting one does not change your tax classification, does not by itself create an LLC or corporation, and does not register you as tax-exempt. If you are still deciding on a structure first, our guide to LLC vs sole proprietorship covers that decision, and our EIN for freelancers explainer covers whether a solo freelancer needs one at all. This article is the how-to: the application itself, the rules around it, and the pitfalls.
Who needs an EIN, and who can skip it?
An EIN is a nine-digit federal tax identification number that the IRS assigns to a business entity. The IRS Do You Need an EIN page lists the situations that require one, and the list is shorter than most people assume.
You are required to have an EIN if any of the following apply: you have employees; you operate your business as a partnership or a corporation; you file employment, excise, or certain alcohol, tobacco, and firearms (ATF) tax returns; you withhold taxes on income (other than wages) paid to a non-resident alien; you have a Keogh plan; or you are involved with certain trusts, estates, or non-profit organizations. The full trigger list lives in the Form SS-4 instructions.
You can usually skip an EIN if you are a sole proprietor or a single-member LLC with no employees and no excise or pension-plan filings. In that case the IRS lets you use your own Social Security Number on returns. Even so, many sole proprietors get an EIN anyway for two practical reasons: most banks ask for one to open a business account, and putting an EIN (rather than your SSN) on a 1099 form keeps your SSN out of clients' files. That privacy angle is the single most common reason a freelancer who is not legally required to have an EIN gets one.
Is the IRS EIN application really free?
Yes. The EIN application is free directly from the IRS, with no government filing fee in any of the available channels. The IRS states this plainly on its Apply for an EIN Online page: applying is a free service offered by the Internal Revenue Service.
The friction in the marketplace comes from third-party "EIN filing services." These sites typically charge a fee, often presented as $50 to several hundred dollars, to type your information into the same free IRS application on your behalf. They are not government agencies, they cannot give you anything you cannot get yourself, and they sometimes list themselves as the responsible party or contact, which can complicate your records later. The USA.gov business taxes guidance consistently directs applicants to apply with the IRS directly.
| Channel | Who it is for | Typical turnaround | Cost |
|---|---|---|---|
| Online | Applicants with a U.S. principal business and an SSN or ITIN | Immediate | $0 |
| Fax (Form SS-4) | Those who cannot use the online tool | About 4 business days | $0 |
| Mail (Form SS-4) | Paper filers, no rush | About 4 weeks | $0 |
| Phone | International applicants without U.S. residence | During the call | $0 |
Turnaround figures above are the IRS-stated norms for each channel and are described qualitatively because processing times shift; the online channel is the fastest and the one the IRS recommends for most applicants.
How do you apply for an EIN online, step by step?
Applying online is a guided interview that rebuilds Form SS-4 question by question. The session is single-use: you must finish in one sitting because it times out after a period of inactivity, and your number is issued only when the validated application is submitted. Have your responsible party's SSN or ITIN, your legal business name, and your mailing address ready before you start.
- Confirm you actually need one (or want one). Re-check the trigger list above against the IRS requirement page. If you are a no-employee sole proprietor getting one for privacy or banking, that is a valid reason too.
- Open the official application. Go to the IRS online EIN application directly. Your principal business or residence must be in the United States or U.S. territories to use the online tool.
- Identify the responsible party. Enter the person who controls the entity and its funds, with their SSN or ITIN. This must be a natural person, not another company. (Details in the next section.)
- Answer the entity and activity questions. Choose your entity type, describe your main business activity, and report your expected number of employees and your start date, mirroring the SS-4 fields.
- Submit and save the confirmation. Submit the validated form, receive your EIN on screen, and download the CP 575 notice. Store it where you keep permanent business records; you will need the number for banking, payroll, and tax filings.
One operational limit the IRS enforces: the responsible party may be issued only one EIN per day across all channels. If you are forming several entities, space the applications across days. Once issued, an EIN is permanent and is never reused or reassigned to another business, even if you never file a return with it.
Plan the filings your new EIN will trigger
An EIN often means quarterly estimated payments and new deadlines. Map yours before they sneak up.
Open the deadline dashboard →What are the responsible-party rules?
The responsible party is the individual who ultimately owns or controls the entity, or who exercises ultimate effective control over the entity and the disposition of its funds and assets. The IRS defines this on its Responsible Parties and Nominees page, and the rule has real teeth: with limited exceptions for government entities, the responsible party must be a natural person, not a corporation, LLC, or other entity.
This rule exists to stop "nominee" arrangements, where someone other than the true controlling person is listed to obscure ownership. Listing a nominee or a paid service as the responsible party is the kind of misstep that paid filing services can introduce. If your responsible-party information changes, the IRS asks you to update it using Form 8822-B within 60 days of the change.
What do you do if you lost your EIN?
A lost EIN is a lookup problem, not a re-application problem; the IRS does not issue a replacement number because your EIN never expires and is never reassigned. Before calling anyone, check the records you already have.
- Your CP 575 notice. The original confirmation letter the IRS sent when the EIN was assigned shows the number. This is the cleanest source.
- A prior business tax return. Any return you have filed under the EIN displays it near the top.
- Your business bank account. The bank recorded the EIN when you opened a business account, so the paperwork or a call to the bank will surface it.
- A 1099 or payroll record. If a client issued you a 1099 to the business, or you ran payroll, the EIN appears there.
If none of those work, call the IRS Business and Specialty Tax Line. The IRS explains on its Lost or Misplaced Your EIN page that an authorized person, such as a sole proprietor, partner, corporate officer, or trustee, can call to have the assigned number provided after an identity check. Have your identifying details ready so the agent can verify you are entitled to the information.
EIN vs SSN vs ITIN: which number does what?
An EIN identifies a business to the IRS, an SSN identifies a U.S. individual, and an ITIN identifies an individual who must file U.S. taxes but cannot get an SSN. They are not interchangeable, and a business owner often holds more than one of them at once: the business carries the EIN, while the responsible party applies using their personal SSN or ITIN.
| Number | What it identifies | Who issues it | Used for |
|---|---|---|---|
| EIN | A business entity | IRS | Business returns, payroll, business banking, 1099s issued by the business |
| SSN | A U.S. individual | Social Security Administration | Personal tax returns, Social Security and Medicare, sole-prop identification |
| ITIN | An individual ineligible for an SSN who must file | IRS | Personal filing for certain non-residents and dependents |
The ITIN is the one most often misunderstood. Per the IRS ITIN page, an ITIN is for tax reporting only; it does not authorize work, confer immigration status, or qualify a person for Social Security benefits. For business owners who hold an ITIN rather than an SSN, the practical point is that you can still apply for an EIN: the online tool requires an SSN or ITIN, and if you have neither you apply by phone, fax, or mail using Form SS-4. The Social Security Administration (SSA) issues SSNs, not the IRS, which is why a missing SSN does not block business formation.
Get the quarterly tax deadline checklist
A new EIN usually means new filing dates. We will send the one-page 2026 quarterly deadline checklist so nothing slips.
Why do grant and nonprofit applicants need an EIN?
An EIN is a prerequisite for nearly every grant and nonprofit registration, because funders and federal systems identify your organization by it rather than by any individual. If you are pursuing funding, you will hit the EIN requirement at the registration gate before you can submit a single application.
Federal applicants register in the government's award system, and that registration is keyed to your EIN alongside a Unique Entity ID (UEI). The SAM.gov entity registration process and the Grants.gov applicant registration both expect an established EIN for the organization. For nonprofits specifically, the EIN comes first and tax-exempt status comes second: you obtain the EIN, then apply for recognition of exemption, which the IRS describes in the Application for Recognition of Exemption guidance. The EIN by itself does not make you tax-exempt; it just lets the system recognize the entity.
If grant funding is part of your plan, our friends at GrantProbe walk through eligibility and deadlines for federal small-business grants, all of which assume you already hold an EIN for the applying entity. And if your business is an ecommerce or Amazon operation, the same EIN you set up here is what BagEngine's guide to starting an Amazon FBA business assumes you use on your marketplace and banking paperwork.
Frequently asked questions
How much does it cost to get an EIN?
Nothing. The IRS issues EINs for free through its online application, by fax, by mail, or by phone for international applicants. There is no government filing fee. Any website that charges you to obtain an EIN is a third-party service reselling a free government process.
How long does it take to get an EIN?
The online application issues your EIN immediately at the end of the session, typically within about 15 minutes. Fax requests generally return an EIN within about four business days, and mailed Form SS-4 applications take roughly four weeks, according to the IRS.
Who is the responsible party on an EIN application?
The responsible party is the individual who ultimately owns or controls the entity and its funds and assets. The IRS requires this to be a natural person with an SSN or ITIN, not another business entity, unless the applicant is a government entity.
What do I do if I lost my EIN?
Check your original CP 575 confirmation notice, a prior business tax return, your business bank account paperwork, or a previously filed 1099. If none are available, call the IRS Business and Specialty Tax Line and verify your identity as an authorized person to have the EIN provided.
What is the difference between an EIN, an SSN, and an ITIN?
An EIN identifies a business entity to the IRS. An SSN identifies an individual for Social Security and personal tax purposes. An ITIN is a tax processing number for individuals who must file but are not eligible for an SSN. A business uses an EIN; the responsible party still uses an SSN or ITIN to apply.
Can a grant or nonprofit applicant get an EIN before being recognized as tax-exempt?
Yes. A nonprofit or grant applicant needs an EIN to register on funding portals and to apply for tax-exempt status, and the EIN is obtained before or alongside the exemption application. Getting an EIN does not by itself grant tax-exempt status, which requires a separate IRS determination.
Sources
- Internal Revenue Service. Apply for an Employer Identification Number (EIN) Online. verified 2026-05-28
- Internal Revenue Service. About Form SS-4, Application for Employer Identification Number. verified 2026-05-28
- Internal Revenue Service. Do You Need an EIN? verified 2026-05-28
- Internal Revenue Service. Responsible Parties and Nominees. verified 2026-05-28
- Internal Revenue Service. Lost or Misplaced Your EIN. verified 2026-05-28
- Internal Revenue Service. Individual Taxpayer Identification Number (ITIN). verified 2026-05-28
This article is educational content, not tax or legal advice. Tax rules and IRS procedures change; verify details against the linked IRS pages and consult a qualified tax professional or attorney before acting on your specific situation.