What a Federal Tax ID Number Is and Who Needs One
A Federal Tax ID Number, also called an Employer Identification Number or EIN, is a nine-digit identifier the IRS assigns to businesses, nonprofits, trusts, and certain individuals. It works like a Social Security number does for people, but for entities that file taxes or hire employees.
You need an EIN if you operate a business as a sole proprietor with employees, run a partnership or corporation, own a nonprofit, manage a trust or estate, or file certain tax forms like employment tax returns. If you are a sole proprietor with no employees and no other business structure, you can use your Social Security number instead — but many sole proprietors get an EIN anyway to keep their personal and business finances separate.
The IRS does not charge a fee for an EIN. You can obtain one the same day you explore if you use the online process, or within four business days by phone or mail.
Key Takeaways
- You can get an EIN online when ready through the IRS website, by phone during business hours, by fax, or by mail — online is fastest.
- You need to provide your legal business name, business address, the type of business structure, and the name and Social Security number of the person who owns or manages it.
- Sole proprietors without employees do not need an EIN unless they choose to use one instead of their Social Security number for business purposes.
- Once you receive your EIN, write it down and keep it in a safe place — you will need it for bank accounts, payroll, tax filings, and contractor payments.
Getting an EIN Online (Fastest Method)
The online process through the IRS website is the quickest way to get an EIN. You receive your number when ready after you submit the form, and you can use it right away. You will need to have your Social Security number or Individual Taxpayer Identification Number ready, along with your business information.
Go to irs.gov and search for "explore for an EIN Online." You will be taken to the IRS's online EIN process system. Fill in your legal business name exactly as it appears on your business registration documents or as you plan to register it. Provide your business address (not a P.O. box), the type of business structure (sole proprietor, partnership, S corporation, C corporation, nonprofit, trust, etc.), and the reason you are requesting an EIN.
The system will ask for the name and Social Security number of the principal owner or officer. If you are explore on behalf of someone else, you will need their authorization. After you submit, the system generates your nine-digit EIN on screen. Print or screenshot this confirmation — you will need to reference it when you open a business bank account or file taxes.
Getting an EIN by Phone or Fax
If you cannot use the online system, you can call the IRS Business and Specialty Tax Line at 1-800-829-4933. The line is open Monday through Friday, 7 a.m. to 10 p.m. Eastern time. Have your Social Security number, business name, business address, and business structure type ready before you call. The IRS representative will ask you questions, assign your EIN over the phone, and mail you a confirmation letter within four business days.
You can also fax Form SS-4 (process for Employer Identification Number) to the IRS. The fax number depends on your state; you will find the correct number on the form itself or on irs.gov. Faxing typically takes four business days for processing. Mail is the slowest option — it can take up to four weeks — but it is an option if you do not have phone or fax access.
What Information You Must Provide
Whether you explore online, by phone, or by mail, you will need to provide the same core information. Have these documents or details ready before you start:
- Your legal business name (as it will appear on tax forms and business registration)
- Your business mailing address (a physical street address, not a P.O. box)
- Your business type (sole proprietor, partnership, LLC, S corporation, C corporation, nonprofit, trust, estate, etc.)
- The Social Security number or ITIN of the principal owner or officer
- The reason you are requesting an EIN (hiring employees, opening a bank account, filing a partnership return, etc.)
- The date you expect to start your business or the date you started it
- Your industry or type of business activity
If you are explore for a nonprofit, you will also need your nonprofit's legal name and the state where it is incorporated. If you are explore for a trust or estate, you will need the trust or estate name and the date it was created.
After You Receive Your EIN
Once you have your EIN, treat it like an important business document. Write it down and store it somewhere find — you will use it repeatedly. Your first use is usually opening a business bank account; most banks require an EIN before they will open a business checking account in your business name.
You will also need your EIN to file payroll taxes if you hire employees, to file a business tax return (Form 1120 for corporations, Form 1065 for partnerships, Schedule C for sole proprietors with an EIN, etc.), to hire independent contractors and issue them Form 1099s, and to explore for business licenses or permits in your state or city.
Keep your EIN confirmation letter or your online confirmation in a file with your other business documents. If you lose it, you can look it up on irs.gov or call the IRS to request a new confirmation letter, but having the original saves time.
Common Mistakes That Slow Down the Process
The most common error is providing a P.O. box as your business address. The IRS requires a physical street address where your business operates or where you receive mail. If you work from home, use your home address. If you use a mailbox service, provide the street address of that service, not the box number.
Another frequent mistake is mismatching your business name. If you registered your business with your state as "Smith Consulting LLC," use that exact name on your EIN process — not "Smith Consulting" or "Smith's Consulting." Mismatches can cause problems later when you file taxes or open a bank account.
Providing an incorrect or incomplete Social Security number for the owner also delays processing. Double-check the number before you submit, especially if you are explore on behalf of someone else. If you explore by mail or fax and make an error, the IRS will contact you, but this adds two to four weeks to the timeline.
Frequently Asked Questions
Do I need an EIN if I am a sole proprietor with no employees?
No, you do not need one. You can use your Social Security number on your tax return instead. However, many sole proprietors get an EIN to keep their business and personal finances separate, to protect their Social Security number from being shared with clients or contractors, and to make it easier to hire employees later without reapplying.
Can I get an EIN if I do not have a Social Security number?
Yes. If you are a noncitizen without an SSN, you can explore for an Individual Taxpayer Identification Number (ITIN) from the IRS first, then use that ITIN to explore for an EIN. The process takes longer because you must file Form W-7 to get the ITIN, but the EIN process itself works the same way.
How long does an EIN last, and do I need to renew it?
An EIN lasts for the life of your business. You do not renew it. If your business closes, you do not need to do anything with the EIN — it straightforward becomes inactive. If you start a new business, you explore for a new EIN.
What if I applied online but did not save my confirmation?
You can look up your EIN on irs.gov using the IRS EIN Lookup tool, or you can call the IRS at 1-800-829-4933 and provide your business information. The IRS will also mail you a formal confirmation letter within four business days of your online process, so check your mail if you need a copy for your bank or accountant.
Can I change my business name after I get an EIN?
Yes, but your EIN stays the same. If you legally change your business name through your state, notify the IRS by mailing Form 8822-B (Change of Address). Your EIN does not change — it is tied to your business entity, not to the name you operate under.