How to get an EIN for your business, free and step by step

An EIN is free from the IRS. The IRS says you can get one online “in minutes,” and an approved application shows the number right away. Here is how to get an EIN: apply on the IRS website during open hours and finish in one sitting. Then print the confirmation letter.

An employer identification number (EIN), also called a federal employer identification number, is the business tax ID the Internal Revenue Service gives your business. It is step one in how to do payroll for a small business. The steps below group the questions the IRS asks, based on Form SS-4. Your screens may differ in order.

Who needs an employer identification number?

You need an EIN if you have employees or owe employment or excise taxes. You also need one if your business withholds taxes on income paid to a nonresident alien. The IRS lists partnerships, corporations, nonprofit organizations, estates, most trusts, and retirement plans as needing one too.

A sole proprietorship with no employees generally does not need one under those rules. Still, the IRS lets you apply for an EIN for banking or state tax purposes, like a business bank account. If your first hire is close, our first-time employer checklist shows where the EIN fits.

What to have ready before you start

You cannot save the online session, so gather everything first. Most of these items come straight from Form SS-4, the paper EIN application. If you are forming a corporation or LLC, finish the state filing first, because the IRS warns that applying early may delay you.

I’ve seen owners lose a half-finished session to the timeout while they hunted for a formation date. Keep this list open before you start.

1. Responsible party’s name and Social Security number or Individual Taxpayer Identification Number (ITIN).
2. Legal business name, exactly as on your state papers.
3. Any trade name.
4. Business address and mailing address.
5. Business structure.
6. Date business started or acquired.
7. Expected number of employees, even zero.
8. Date you first expect to pay wages.

How to get an EIN online, step by step

Use the EIN online application on the IRS website. The responsible party, or an authorized representative, completes it in one session. The steps below follow Form SS-4’s question groups. If the IRS approves it, you get your EIN immediately online and can print the confirmation letter.

The tool only works if your principal place of business is in the United States or its territories. Expect similar questions online, possibly in a different order.

Step 1: Choose your business entity

Pick the business entity type on your state formation papers. If you run a single-member LLC or other limited liability company, ask your tax professional how it is classified before you choose. Paper Form SS-4 line 10 asks your reason for applying, such as starting a new business or hiring employees. Answer from the prompts you see online.

Step 2: Enter the responsible party

The IRS defines the responsible party as “the person who ultimately owns or controls the entity”. It generally must be a person, usually the owner, not a company or a nominee. Enter the name and Social Security number or ITIN exactly as the IRS has them.

Step 3: Add your legal name and addresses

Type your legal business name, then add any trade name. After that, add your business address, plus a mailing address if mail should go elsewhere.

In the accounts I’ve worked on, the messiest EIN problems started with a name that did not match the state filing. That mismatch can cause delays when you open a business bank account. Copy the name straight from your formation papers.

Step 4: Answer the start date and employee questions

On paper Form SS-4, line 11 asks the date the business started, and line 13 asks how many employees you expect. Include zero if none are planned. Line 15 asks the date you expect to pay wages for the first time. If plans change, you can still hire employees under the same EIN.

Step 5: Review, submit, and save the letter

Review your answers, then submit. Once the IRS approves, your number appears, and the IRS tells you to print the confirmation letter. My advice is to save a PDF of it right away, because your bank, payroll provider, and state agencies may ask for it.

IRS hours, time limits and daily caps

The EIN online tool keeps set hours in Eastern time. It also ends your session after 15 minutes of inactivity, and you cannot save and come back later. On top of that, the IRS allows only one EIN per responsible party per day.

So a Sunday morning try will fail, but Sunday evening works.

Applying by fax, mail, or phone

You can also apply for an EIN with paper Form SS-4. Fax is generally faster than mail, and applicants outside the United States can apply by phone. The timing comes from the Form SS-4 instructions, which also list current fax lines.

If you mail it, send it 4 to 5 weeks before you need the number. For the 50 states and D.C., mail it to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Applicants in territories or abroad use Attn: EIN International Operation, so check the instructions first.

EIN scams and paid filing sites

The IRS never charges for an EIN. Its own page says, “You never have to pay a fee for an EIN.” Some third-party sites charge for something the IRS does for free. So check that the address bar shows irs.gov before you type anything.

The IRS Get an EIN page also warns you to beware of websites that charge for an EIN. Owners apply directly with the IRS, for free, so close any tab that asks for a card number.

EIN vs state tax ID

Your EIN is a federal number only. In most states, you also register with the withholding tax and unemployment insurance agencies before you run payroll, so you can pay state taxes. See employer registration by state and our guide to state unemployment tax (SUTA).

If employees work in more than one state, you register in each one. Business licenses come from state or local offices. I tell owners to treat the EIN as step one of two, with state accounts right behind it.

What starts once you have an EIN and employees

Once you hire, your EIN goes on every federal payroll filing. Generally, new employers file Form 941 each quarter, and our guide on how to file Form 941 covers it line by line. The table lists your first tax filings and hiring deadlines, with the agency behind each rule.

Here is an illustrative example. A new landscaping company gets its EIN on a Tuesday night and plans a first hire for next Monday. The owner enrolls in EFTPS on Wednesday, since new enrollments can take up to five business days to process. The worker starts Monday, so the owner follows an employee onboarding checklist. Section 2 of Form I-9 is due by Thursday, three business days later.

How FRIDAY picks up after your EIN arrives

This guide covers the IRS application. Once you have your number and state accounts, FRIDAY takes over the payroll side. The Startup plan runs unlimited payrolls and handles tax filing and compliance, direct deposit, and W-2s and 1099s. It costs $59 a month plus $12 per user each month.

Small Biz Pro adds multi-state payroll and PTO accrual for $99 a month plus $16 per user each month. You can test either with a 14-day free trial, and there is no setup fee or cancellation fee.

FAQs

Is an EIN actually free?

Yes, an employer identification number is always free from the IRS. The IRS says you never have to pay a fee for one. A website that charges you is a paid middleman, not the IRS.

Can I apply for an EIN on a Sunday?

Yes, but only in the evening. The IRS online tool is open Sundays from 6 PM to midnight Eastern time.

How long does it take to get an EIN?

Online, you get your EIN right away if the IRS approves the application. By fax, it generally takes up to 4 business days. By mail, plan on about 4 weeks.

After I get an EIN, which payroll filings are required?

Generally, new employers file Form 941 each quarter, plus Form 940 each year if they meet the FUTA test. You also report new hires to your state within 20 days, or sooner where state rules say so. Form I-9 Section 2 is due within three business days of the start date.

Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Consult a licensed professional for guidance specific to your situation. IRS hours, forms and rules change, so confirm current details on irs.gov before you apply or file.

Pincus Schiff

Pincus Schiff is a payroll software specialist at Friday App, where he helps businesses simplify payroll, stay compliant, and automate their workflows. He writes about payroll best practices, compliance, and the latest in workforce technology.