What Is an EIN and How Do You Get One?

An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify a business entity. It works like a Social Security Number for your company — and you'll need it to open a business bank account, hire employees, file taxes, and apply for most business licenses.

Who needs an EIN?

You need an EIN if any of the following apply:

• You operate as an LLC, corporation, or partnership.
• You hire employees or pay contractors more than $600 a year.
• You want to open a business bank account in the company's name.
• You file employment, excise, or alcohol/tobacco/firearm taxes.

Solo founders operating as sole proprietors with no employees can technically use their SSN — but most experienced founders still get an EIN to keep personal and business finances separated.

How to apply

The fastest route is the IRS online application, which is free and issues the EIN immediately. You'll need a valid Taxpayer Identification Number (SSN, ITIN, or another EIN) for the "responsible party."

1. Go to the IRS EIN Assistant on irs.gov.
2. Select your entity type (LLC, Corporation, etc.).
3. Provide the responsible party's information.
4. Submit — you'll receive the EIN on the confirmation screen.

Save the confirmation letter (Form CP 575) as a PDF. Banks and government agencies will ask for it.

International founders

You don't need to be a U.S. citizen or resident to get an EIN, but non-residents without an SSN or ITIN must apply by fax or mail using Form SS-4. Expect a 4–6 week turnaround. Many founders use a formation service to handle this on their behalf.

After you have it

Use the EIN to open a business bank account, register for state and local taxes, set up payroll, and file your federal returns. Store it somewhere safe — and never share it publicly the way you would a marketing phone number.