An EIN (Employer Identification Number) is your business's federal tax ID — a nine-digit number the IRS uses to identify your company, the way a Social Security number identifies you. You need one to open a business bank account, hire employees, and file business taxes.

Here is the most important thing in this entire article: an EIN is completely free, and the IRS application takes about 15 minutes. Formation companies routinely charge $50–$75 to "file" it for you. That is $50 for 15 minutes of typing your own information into a free government form. Do it yourself.

Do you actually need an EIN?

You must get one if your LLC:

  • Has more than one member (multi-member LLCs always need one)
  • Has employees (even one part-time employee)
  • Elects to be taxed as a corporation (S corp or C corp)
  • Files certain excise or employment tax returns

You should get one even as a single-member LLC with no employees, because:

  • Banks require it to open a business bank account
  • It lets you avoid giving clients your personal SSN on W-9 forms
  • It adds credibility and separates your identities cleanly

The only case where you can skip it: a single-member LLC with no employees that you run entirely as a sole-proprietorship-like operation — and even then, most founders get one anyway because it is free.

Before you apply: what you need

  • Your LLC's legal name (exactly as filed with the state)
  • Your personal SSN or ITIN (the "responsible party" must have one)
  • Your business address
  • The date your business started (or will start)
  • A rough idea of your business activity (for the industry questions)

International founders without an SSN/ITIN: you cannot use the online application. You must apply by fax or mail using Form SS-4, which takes 4–6 weeks. Start early.

Step-by-step: the IRS online application

  1. Go to the official IRS EIN page. Search "IRS apply for EIN online" or navigate to irs.gov/businesses. Only use irs.gov — copycat sites charge fees for this free service.
  2. Check the hours. The online application is only available Monday–Friday, 7 a.m. to 10 p.m. Eastern Time. (Yes, really. Plan accordingly.)
  3. Start the application as a new entity. Select "Limited Liability Company (LLC)" as the entity type.
  4. Enter the responsible party. That is you — name and SSN/ITIN. The IRS limits one EIN per responsible party per day.
  5. Enter your LLC details: legal name, state of formation, business address, start date.
  6. Answer the business questions: number of members, whether you will have employees, principal business activity. Answer honestly but do not overthink — these are for IRS classification.
  7. Choose how to receive confirmation. Select the online confirmation option.
  8. Submit and save your EIN letter. Your EIN is issued immediately on screen, along with a confirmation letter (CP 575). Save and print this letter — banks often ask for it, and replacing it later is a hassle.

Total time: about 15 minutes if you have your information ready.

After you get your EIN

  • Open your business bank account — bring your approved Articles of Organization, EIN letter, and ID.
  • Store the EIN letter safely — digital backup plus a printed copy.
  • Use it on W-9s instead of your SSN when clients ask.
  • If you hire: the EIN is what you will use for payroll tax filings.

Common EIN mistakes

  • Paying for it. We keep repeating this because companies keep charging for it. Free. IRS. Fifteen minutes.
  • Applying before your LLC is approved. Get the state filing confirmed first so the legal name matches exactly.
  • Typos in the legal name. A mismatch between your Articles and your EIN application creates paperwork headaches with banks.
  • Losing the confirmation letter. Requesting a replacement (Form 147C) involves calling the IRS and waiting.
  • Applying twice. One EIN per entity. If you are not sure whether you already have one, check old bank paperwork before reapplying.

EIN scams to watch for

Any website that is not irs.gov and offers to "get your EIN fast" for a fee is selling you something free. Some look convincingly official. The IRS never charges for EINs, never emails you asking to apply, and never asks for payment during the application.

The bottom line

Getting an EIN is one of the easiest steps in starting a business: free, fast, and done entirely on the IRS website in about 15 minutes. Do it the week your LLC is approved, save the confirmation letter, and never pay anyone to do it for you.

Next steps: open a business bank account and make sure you understand your annual compliance obligations.