What the EIN is
The EIN is the number Internal Revenue Service (IRS) and state departments of revenue assigns to a taxpayer in the United States. It follows you across every tax you deal with: Sales tax, income tax and withholding. Businesses that pay you will ask for it before they release payment, because they report their suppliers to Internal Revenue Service (IRS) and state departments of revenue by this number.
Who needs one
Individuals use their SSN or ITIN. Businesses with employees, corporations, partnerships and most LLCs need an EIN; a sole proprietor without staff can use an SSN, but an EIN keeps it off invoices.
How to register, step by step
- Apply for an EIN free on IRS.gov; the number is issued immediately.
- Sole proprietors and single-member LLCs apply with an SSN or ITIN; foreign owners fax or mail Form SS-4.
- Register separately with your state for a sales tax permit if you sell taxable goods or services there.
- Give clients a Form W-9 with your EIN so they can issue a 1099.
How to find or check a EIN
The EIN is on the IRS confirmation letter (CP 575); call the IRS Business and Specialty Tax Line if you lose it. Paid EIN lookup sites charge for what the letter shows free.
Documents, cost and how long it takes
An Employer Identification Number (EIN) is free; the IRS states that no fee is ever charged for one. A business formed in the United States or its territories, with its principal place of business there, applies online on IRS.gov using the Social Security number or ITIN of the responsible party and the entity type. If the application is approved, the EIN is issued immediately, and the tool allows one EIN per responsible party per day. The online tool runs Monday to Friday 6:00 a.m. to 1:00 a.m. Eastern, Saturday 6:00 a.m. to 9:00 p.m. and Sunday 6:00 p.m. to midnight. A business whose principal place of business is outside the United States cannot use the online tool and applies by phone, fax or mail instead.