What an EIN is
An Employer Identification Number (EIN) is a 9-digit number the IRS assigns to businesses, in the format 12-3456789. Despite the name, you do not need employees to have one. Think of it as a Social Security number for your business.
Do you need one?
You must have an EIN if, among other cases:
- You have employees.
- Your business is a partnership or corporation, including a multi-member LLC or an LLC taxed as a corporation.
- You file employment, excise, or alcohol, tobacco and firearms tax returns.
- You have a Keogh or other qualified retirement plan for the business.
A sole proprietor with no employees, including most freelancers and gig drivers, does not need one: you can use your SSN or ITIN. The same generally goes for a single-member LLC with no employees for income tax purposes, although it needs its own EIN for employment or excise taxes. Our LLC vs sole proprietor guide explains the difference.
Why many sole proprietors get one anyway
- Keep your SSN private. When a client asks for a Form W-9, a sole proprietor can give an EIN instead of an SSN. That is one less place your Social Security number is stored.
- Open a business bank account. Many banks ask for an EIN, which helps keep business and personal money separate.
- Look more established to clients and suppliers.
- Be ready to grow: you will need one if you hire someone.
How to apply (free)
| Method | Who can use it | How long it takes |
|---|---|---|
| Online on IRS.gov | Businesses located in the U.S. or U.S. territories | Immediately, at the end of the session |
| Fax (Form SS-4) | Anyone | About 4 business days |
| Mail (Form SS-4) | Anyone | Apply at least 4 to 5 weeks before you need it |
| Phone | Only international applicants with no U.S. location | During the call |
Applying online is the fastest way:
- Go to the EIN application on IRS.gov (check that the address ends in irs.gov). It is open most of the day, every day; the hours are listed on the IRS page.
- Choose your business type. A freelancer or gig worker without a company chooses sole proprietor.
- Enter your details as the responsible party: name and SSN or ITIN, address and business information.
- Finish in one sitting: the session expires after 15 minutes of inactivity.
- Download and save the confirmation notice at the end. It is your proof of the number.
You can get only one EIN per responsible party per day.
International applicants with no legal residence, principal place of business or office in the U.S. cannot apply online. They can call 267-941-1099 (not a toll-free number), Monday through Friday from 6:00 a.m. to 11:00 p.m. Eastern time, or apply by fax or mail.
After you get it
- Give it on Form W-9 to clients and platforms that pay you, if you want to use it instead of your SSN. Make sure the name you give matches the IRS records for that number. A mismatch can lead to IRS notices to the payer and to 24% backup withholding on your payments.
- Keep your information current. Changes to the responsible party must be reported to the IRS within 60 days with Form 8822-B.
- Your personal return does not change. You still file Form 1040 with your SSN or ITIN, and report business income on Schedule C. See our Schedule C walkthrough.
Avoid EIN scams
- The IRS never charges for an EIN. Sites that “file for you” for a fee are not the IRS, even if they look official.
- Use only irs.gov to apply.
- Protect the confirmation notice like any other identity document: with your EIN and name, someone could try to impersonate your business.