What an Employer Identification Number is, who needs one, how to apply with the IRS online, by fax or by mail, what information to prepare and what to do after you receive it.
An EIN, also called a federal tax identification number, identifies a business for federal tax purposes, much like a Social Security number identifies an individual. It is used on payroll tax filings, employee W-2 forms, business tax returns and Forms 1099 issued to contractors, and it is often required to open a business bank account or apply for business licenses and credit. See how to open a business bank account.
With the EZTime time clock app, employees clock in from their phone with GPS and managers approve hours from anywhere.
A sole proprietor with no employees can often use their Social Security number, but many get an EIN anyway to avoid sharing their SSN with clients and to keep business and personal matters separate. See what is a sole proprietorship. The IRS website has an official list of who needs an EIN; check it if you are unsure.
| Item | Notes |
|---|---|
| Legal name of the business | Exactly as registered with your state, if applicable |
| Trade name (DBA) | If different from the legal name |
| Business address | Mailing and physical location |
| Entity type | Sole proprietor, LLC, corporation, partnership, nonprofit and so on |
| Responsible party | The person who ultimately owns or controls the business, with their SSN or ITIN |
| Reason for applying | Starting a business, hiring employees, banking purposes and so on |
| Start date and accounting year | Date the business started or was acquired; closing month of the accounting year |
| Expected employees | Number expected in the next 12 months and first wage date |
| Principal activity | What the business mainly does |
If you are forming an LLC or corporation, form it with your state first so you can give the IRS the correct legal name and entity type.
| Method | How it works | Notes |
|---|---|---|
| Online | Complete the IRS online EIN application in one session | Fastest; you typically receive the EIN at the end of the session. Available to applicants whose principal business is in the U.S. or U.S. territories and whose responsible party has an SSN or ITIN. The IRS limits EINs to one per responsible party per day |
| Fax | Send a completed Form SS-4 to the IRS fax number for your location | See the Form SS-4 instructions for processing details |
| Mail a completed Form SS-4 | Slowest option | |
| International applicants | Applicants without a U.S. principal place of business can apply by phone, fax or mail | See IRS instructions for international applicants |
Check the current Form SS-4 instructions on irs.gov for addresses, fax numbers and processing details, which can change.
Applying for an EIN directly with the IRS is free. Many websites look official but charge fees to submit the same application for you. Unless you choose to pay an accountant or attorney to handle it, apply on irs.gov yourself. Never share your SSN on a website you have not confirmed is the IRS.
A simple change of name or address usually does not require a new EIN; you notify the IRS instead. Check IRS guidance for your situation.
Check your confirmation notice, old tax returns, bank account records or payroll filings, which all show the EIN. If you still cannot find it, the IRS has a business and specialty tax phone line that can provide it to an authorized person after verifying identity.
For many small businesses, the EIN is the first step toward hiring. Before your first employee starts, decide how you will track hours, calculate overtime and run payroll. See hiring your first employee and how to calculate payroll hours.
Once your EIN is set up and you start hiring, EZTime records employee hours with mobile clock-in, calculates overtime and exports timesheets to payroll, so your first payroll runs on accurate hours. Plans start at $2 per employee per month; see pricing.
| Use | Notes |
|---|---|
| Business bank account | Most banks require it for LLCs and corporations |
| Payroll setup | Needed for payroll tax filings and W-2s |
| Forms 1099 | Issued to contractors you pay |
| Business licenses | Many applications ask for it |
| Vendor accounts | Suppliers may request it on credit applications |
See how to open a business bank account and hiring your first employee.
If your business address or responsible party changes, update the IRS using the official process. Keeping details current ensures notices reach you and avoids delays when you file or open accounts. Check irs.gov for the current form and instructions.
Requirements vary by state. See how to get a business license.
Tick each item you have ready.
0 of 6. Gather the basics before you apply.
A nine-digit federal tax identification number the IRS issues to businesses.
No. Applying directly with the IRS is free.
Online applicants typically receive the EIN at the end of the session; fax and mail take longer.
Not always. Those with employees or certain tax obligations do; others can often use their SSN but may choose an EIN.
Usually not. A name change is reported to the IRS; a change of structure may require a new EIN.
Check the confirmation notice, tax returns or bank records, or contact the IRS business line.
Run new hires through an onboarding track in EZTime, collect signed forms, and use the offboarding track when someone leaves. See current plans and what each one includes on the pricing page.