How to Get a Federal Tax ID (EIN) for Your Business

Learn when you need an EIN, how to apply step‑by‑step, and what to do after you receive your federal tax ID number.

By Medha deb

Created on Jul 10, 2026

Learn when you need an EIN, how to apply step‑by‑step, and what to do after you receive your federal tax ID number.

A federal tax ID number, more commonly called an Employer Identification Number (EIN), is one of the first official identifiers many businesses need. An EIN allows the Internal Revenue Service (IRS) to track your business for tax purposes and is often required for hiring employees, opening bank accounts, applying for licenses, and more.

This guide explains in practical, business‑friendly terms what a federal tax ID is, who needs one, how to apply through different IRS channels, and how to manage and use your EIN once you receive it.

Understanding Federal Tax ID Numbers

The term “federal tax ID” can refer to different identifiers used by the IRS. For businesses, it most often means an EIN. For individuals, it may refer to a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

What Is an EIN?

An EIN is a unique nine‑digit number issued by the IRS to identify a business entity for federal tax administration. It functions similarly to a Social Security Number, but for non‑individual entities like:

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Corporations
Partnerships
Limited liability companies (LLCs)
Nonprofit organizations
Trusts and estates
Some self‑employed individuals and sole proprietors

Once assigned, your EIN remains with the entity for its entire existence, unless the IRS requires a new number because the business fundamentally changes form (for example, a sole proprietorship becomes a corporation).

EIN vs. Other Tax Identification Numbers

Identifier	Who Uses It	Main Purpose
EIN (Employer Identification Number)	Businesses, trusts, estates, nonprofits, certain other entities	Federal tax reporting, payroll, business banking, licenses
SSN (Social Security Number)	Individuals who are U.S. citizens or residents	Personal income taxes, Social Security benefits, identification
ITIN (Individual Taxpayer Identification Number)	Individuals who are not eligible for an SSN but need to file U.S. taxes	Federal tax reporting for certain nonresident or resident aliens

Do You Need a Federal Tax ID Number?

Not every new business is legally required to obtain an EIN, but many are. The IRS has specific criteria for when a business must have a federal tax ID.

Situations Where an EIN Is Required

According to IRS guidance, you generally must obtain an EIN if any of the following apply to your business:

You have employees and will file federal employment tax returns.
Your business is a corporation or partnership, including multi‑member LLCs taxed as such.
You file certain federal tax returns, such as employment, excise, or specific specialty taxes.
You withhold taxes on income paid to a nonresident alien.
You manage or are involved with certain trusts, estates, nonprofits, real estate mortgage investment conduits, or farmer cooperatives.
You administer a Keogh plan (a tax‑deferred pension plan).

When a Sole Proprietor Might Still Want an EIN

If you operate as a sole proprietor with no employees, you may be able to use your SSN instead of an EIN for federal tax filing. However, many sole proprietors still choose to get an EIN because it can:

Reduce the need to share your SSN on invoices and forms.
Help you open a dedicated business bank account.
Make it easier to register for state taxes and permits.
Simplify the process if you hire employees in the future.

Preparing to Apply for an EIN

Applying for an EIN is free and can often be done in minutes, but you will need key details about your business before you start.

Confirm Eligibility

For the IRS online application tool, your principal business must be located in the United States or U.S. territories, and the person applying must have a valid taxpayer identification number (SSN, ITIN, or existing EIN).

Information You’ll Need

Gather this information before beginning your application:

Legal name of the business or entity.
Trade name or “doing business as” (DBA), if different from the legal name.
Business mailing address and phone number.
Name and taxpayer identification number of the responsible party (such as the principal officer, general partner, or owner).
Business structure (sole proprietorship, partnership, corporation, LLC, nonprofit, trust, estate, etc.).
Reason for applying (starting a new business, hiring employees, banking purposes, or other).
Date the business was started or acquired.
Expected highest number of employees in the next 12 months (if any).

The IRS requires that the “responsible party” for the entity be a natural person for most applicants, meaning a real individual who ultimately owns or controls the business.

How to Apply for a Federal Tax ID (EIN)

The IRS offers several ways to get an EIN: online, fax, mail, and phone (for international applicants). Each method is free, but processing times differ.

Method 1: Online Application (Fastest)

The online EIN application is the quickest way to obtain your federal tax ID number if your principal place of business is in the United States.

Visit the IRS EIN online assistant on the official IRS website.
Complete the step‑by‑step questionnaire about your entity type, details, and reason for applying.
Submit the application once all required fields are complete.

When your online application is approved, the IRS issues your EIN immediately, and you can download a confirmation notice on the spot.

Method 2: Faxing Form SS‑4

Another option is to complete and fax Form SS‑4, “Application for Employer Identification Number,” to the IRS.

Download Form SS‑4 and its instructions from the IRS website.
Fill in all required fields, including responsible party information.
Fax the form to the appropriate IRS fax number listed in the Form SS‑4 instructions.

If you include a return fax number, the IRS generally issues your EIN and faxes a notification back within about four business days.

Method 3: Mailing Form SS‑4

You can also mail a completed Form SS‑4 to the IRS service center address listed in the form instructions.

Fill out Form SS‑4 carefully following IRS instructions.
Mail it to the address designated for EIN processing.

Processing by mail usually takes around four weeks before you receive an EIN assignment notice.

Method 4: Phone Application for International Applicants

If your principal place of business is outside the United States, the IRS allows you to apply for an EIN by phone.

Call the IRS at the international EIN phone number (currently listed by the IRS as a U.S. area code line).
Provide the information that would normally appear on Form SS‑4.
Ensure the caller is authorized to answer questions about the business and receive the EIN.

During the call, an IRS representative typically assigns the EIN at the end of the conversation, although processing practices can change over time.

Using Your EIN After You Receive It

Once the IRS issues your EIN, you should begin using it consistently for all federal tax‑related activities for that entity.

Common Uses of Your Federal Tax ID

Your EIN will be used repeatedly during the life of your business. Typical uses include:

Filing federal income tax, employment tax, and excise tax returns.
Running payroll and submitting required tax deposits.
Opening business checking and savings accounts.
Applying for business credit cards or lines of credit.
Registering for state and local tax accounts (such as sales tax or withholding).
Applying for necessary business licenses and permits.

Safely Storing and Sharing Your EIN

While your EIN is not as sensitive as a personal SSN, it is still an important identifier that can be misused if disclosed carelessly.

Keep your IRS confirmation letter and EIN records in a secure location.
Share the EIN only with trusted institutions that legitimately need it (banks, tax agencies, payroll providers, and certain vendors).
Use the EIN instead of your SSN whenever possible on business documentation to reduce privacy risks for the owner.

If You Lose or Need to Confirm Your EIN

It is possible to misplace your EIN documentation, especially early on. The IRS offers several ways to confirm your existing number.

Ways to Locate an Existing EIN

Check the original EIN notice issued when you first applied.
Contact the bank where you opened your business account; they likely have the EIN on file.
Review state or local license applications that required an EIN.
Look through previously filed business tax returns.

If you still cannot locate the number, you can contact the IRS for assistance. They may ask security questions to verify your identity and authority regarding the business before disclosing the EIN.

Federal Tax IDs and State Tax Numbers

A federal tax ID (EIN) is separate from state‑issued tax identification numbers. Many businesses need both.

Federal vs. State Identifiers

Federal EIN: Issued by the IRS for federal tax reporting.
State tax ID: Issued by individual states for state income tax, sales tax, employer withholding, and other obligations.

Most states require an EIN before you register for state‑level tax accounts, because the federal number links your state filings to your IRS records.

Practical Tips for a Smooth EIN Application

Although the process is straightforward, careful preparation can prevent delays or errors when applying for your federal tax ID.

Before You Apply

Verify your legal business name and structure with your state filing documents.
Decide who will be listed as the responsible party and ensure they have a valid SSN, ITIN, or EIN.
Choose the reason for applying that most closely matches your situation (new business, hiring employees, banking, or compliance).
Consider using the online tool during IRS service hours for the fastest processing.

After You Receive Your EIN

Update your accounting and payroll systems with the new number.
Use the EIN on W‑2 and 1099 forms, as appropriate, for workers and contractors.
Provide the EIN to your bank and key vendors who require it for tax reporting.
Keep digital and physical backups of your EIN notice.

FAQs About Federal Tax ID Numbers (EINs)

Do I have to pay a fee to get an EIN?

No. Obtaining an EIN directly from the IRS is free, whether you apply online, by fax, mail, or phone (for international applicants).

Can I apply for an EIN if I don’t have employees yet?

Yes. Many businesses obtain an EIN when they form the entity, even before hiring employees. The IRS allows you to apply based on other reasons such as starting a new business or opening a bank account.

How long does it take to get an EIN?

If you use the online application, you typically receive your EIN immediately after completing the form. Fax applications usually take around four business days, and mail applications can take about four weeks.

Can a foreign‑owned business get an EIN?

Yes. International applicants whose principal business is outside the United States can obtain an EIN by phone or by submitting Form SS‑4 by fax or mail, using the IRS contact details designated for international entities.

Will I ever need to change my EIN?

Most businesses keep the same EIN for their entire existence. However, a major change in entity type or ownership structure can, in some cases, require a new EIN according to IRS rules. The IRS publishes guidelines on when a new EIN is necessary.

References

Employer Identification Number (EIN) — Internal Revenue Service. 2024-01-05. https://www.irs.gov/businesses/employer-identification-number
What is an EIN (federal tax ID number)? — Wolters Kluwer. 2023-06-15. https://www.wolterskluwer.com/en/expert-insights/obtaining-a-federal-tax-id-ein
Get Federal and State Tax ID Numbers — U.S. Small Business Administration. 2023-11-20. https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers
Get an Employer Identification Number (EIN) — Internal Revenue Service. 2024-02-10. https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
Taxpayer Identification Numbers (TIN) — Internal Revenue Service. 2023-08-01. https://www.irs.gov/tin/taxpayer-identification-numbers-tin
How to Get a Federal Employer Identification Number — U.S. Chamber of Commerce (CO). 2022-09-12. https://www.uschamber.com/co/start/startup/how-to-get-a-federal-employer-identification-number
Applying for a Federal Tax Identification Number — Society of Urologic Nurses and Associates. 2021-03-18. https://www.suna.org/resource/applying-federal-tax-identification-number

Author

medha deb

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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