Do I Need an EIN?
An EIN (Employer Identification Number) is a nine-digit federal tax ID that the IRS issues to businesses and other entities. It works like a Social Security number for your business.
You need an EIN if your business:
- Has employees
- Is a corporation or a multi-member LLC (partnership)
- Is a single-member LLC that elected corporate or S corporation tax treatment
- Files certain excise or employment tax returns
- Is a nonprofit, trust, or estate
What about a single-member LLC with no employees?
Federally, it may be able to use the owner's Social Security number for income tax. In practice, most banks require an EIN to open a business account, and using an EIN keeps your SSN off invoices and W-9 forms.
How to get one
The IRS issues EINs free of charge, usually online in a single session for U.S.-based applicants. You'll need your entity's legal name, formation details, and a responsible party's taxpayer ID. Some people prefer to have their formation service handle it alongside the LLC filing.
An EIN doesn't replace state tax accounts. Many states issue their own tax ID numbers for sales tax and payroll — see "State Tax ID vs. EIN."
Related service: Business Registration Services →