How to get an EIN for free from the IRS

Is an EIN really free?

Yes. The IRS issues Employer Identification Numbers at no charge. Its own guidance carries a warning: "Beware of websites that charge for an EIN. You never have to pay a fee for an EIN." The SS-4 instructions repeat it: "you can apply for and receive an EIN free of charge on IRS.gov."

An EIN is a nine-digit federal tax ID for your business, the business equivalent of a Social Security number. The IRS assigns it. No middleman is required, and no middleman can get you a "better" or "faster" number. There is one EIN system, and it is run by the IRS.

How do I get an EIN from the IRS?

The fastest way is the online EIN Assistant. If your business is formed in the U.S. and your principal place of business is in the U.S., you complete an interview and receive the EIN immediately.

1. Go to the IRS online application, Apply for an EIN online.
2. Confirm your entity type (LLC, corporation, partnership, sole proprietor, and so on).
3. Enter the responsible party's name and Social Security number or ITIN.
4. Enter your business name, address, and the reason you are applying.
5. Answer a few questions about employees and activities.
6. Submit. The IRS validates your answers and, if approved, issues the EIN right then.
7. Download and save the confirmation letter (CP 575). Keep it. Banks ask for it.

A few things to know before you start. The online session expires after 15 minutes of inactivity, and if it times out you start over, so have your details ready. Form your LLC or corporation with your state first; applying before the entity exists can delay things. And you can apply for only one EIN per responsible party per day. That limit applies to every method, not just online.

What are the other ways to apply?

If you cannot use the online tool, or your business is outside the U.S., you can still apply for free by fax, mail, or (for international applicants) phone. All of these use Form SS-4.

The EIN Assistant is available Monday through Friday 6 a.m. to 1 a.m. ET, Saturday 6 a.m. to 9 p.m. ET, and Sunday 6 p.m. to midnight ET. Every one of these methods is free.

How long does it take?

Online, you get the EIN immediately. The interview itself is short, usually well under the 15-minute inactivity window. Fax runs about four business days if you include a return fax number. Mail takes about four weeks. International phone applicants get the number during the call.

If a service tells you it takes days or weeks to "process" your EIN, that is either the mail timeline (which you can skip by going online) or a delay they are adding. The IRS gives it to you in one sitting.

Do I need an EIN?

Many new businesses do. The IRS says you need an EIN if you:

• Have employees
• Operate as a corporation or a partnership (including a multi-member LLC)
• File employment, excise, or alcohol, tobacco, and firearms tax returns
• Withhold taxes on income, other than wages, paid to a non-resident alien
• Have a Keogh (retirement) plan
• Are involved with certain trusts, estates, non-profits, farmers' cooperatives, or plan administrators

Even when it is not strictly required, an EIN is useful. Banks generally ask for one to open a business account, and the IRS lists opening a bank account among the things you use an EIN for. Using an EIN instead of your Social Security number on vendor and client paperwork also keeps your SSN off more documents.

One common case: a single-member LLC with no employees and no excise tax liability is not required to have an EIN and can use the owner's SSN. Most owners still get one, because the bank wants it.

What is a "responsible party"?

The application asks for a "responsible party," and this trips people up. The IRS defines it as "someone who owns, controls or exercises effective control over a business, nonprofit or other legal entity and directly or indirectly manages its funds and assets." It must be a real person, not another company (the only exception is government entities).

For most new businesses, the responsible party is you, the founder or principal owner. You will enter that person's name and their SSN or ITIN. Do not list a lawyer, accountant, or formation-service "nominee" as the responsible party. Per the IRS, a nominee has little or no control over the entity and cannot apply for an EIN or be listed on Form SS-4.

Do I need a service or a lawyer to get one?

No. This is the flat opinion of anyone who has actually done it: do not pay for an EIN. The online application is free, plain-English, and takes minutes. You do not need a lawyer, an accountant, or a formation service to get the number.

Formation services bundle the EIN into their packages and often charge $50 to $300 for it, sometimes as an upsell after you have already paid for the LLC filing. They are charging for the fifteen minutes it takes to fill out a free government form. The number they get you is identical to the number you would get yourself, because there is only one kind of EIN and only one issuer.

If you are paying a service for other reasons, such as registered-agent service or state filing, fine. Just do not let them charge you for the EIN, and do not believe anyone who tells you the EIN itself costs money. It does not.