Business Guide · Starting a Business
Your business’s tax ID, free in minutes
How to get an EIN straight from the IRS, and what to do the day you receive it.
Learning how to get an EIN is one of the first, and easiest, steps in starting a business: the IRS issues an Employer Identification Number for free, online, in minutes.
An Employer Identification Number (EIN) is a federal tax ID number for businesses, nonprofits and other entities. Think of it as a Social Security number for your company. Banks ask for it to open a business account, the state asks for it when you register as an employer, and clients ask for it on Form W-9 before they pay you. Yet many first-time owners still pay a website to get one. You never have to: the IRS says plainly that there is no fee for an EIN.
Millions of people go through this step every year. The U.S. Census Bureau builds its Business Formation Statistics from EIN applications, and it counted 534,947 business applications in September 2026 alone, seasonally adjusted, up 0.5% from August. The Census Bureau projects that 29,022 of the businesses that applied that month will become employers with payroll within four quarters.
Do you need an EIN?
The IRS says you need an EIN if you have employees; pay employment, excise or alcohol, tobacco and firearms taxes; or withhold tax on income other than wages paid to a non-resident alien. You also need one to operate a partnership, limited liability company (LLC), corporation, tax-exempt organization, estate, most trusts, or a retirement plan.
Common situations
| Your situation | EIN? | Why |
|---|---|---|
| Sole proprietor, no employees | Optional | You can use your Social Security number, but the IRS lets you request an EIN for banking or state tax purposes. Some owners do, so they can give clients an EIN instead of their SSN. |
| Hiring your first employee | Required | You need it to report payroll taxes. |
| LLC or corporation | Required | The IRS lists LLCs, corporations and partnerships among entities that need an EIN. |
| Partnership with a friend | Required | Partnerships file their own federal return under the EIN. |
| Nonprofit | Required | Apply only after the organization is legally formed. |
Before you apply
Three things to settle first will save you a rejected or delayed application.
- Form your entity with the state first. If you are creating an LLC, partnership or corporation, register it with the California Secretary of State before you apply, or the IRS may delay the EIN. Not sure which structure to choose? Start with our California business structure guide.
- Use your exact legal name. Enter the business name as it appears on your formation documents. IRS systems accept only letters, numbers, hyphens and ampersands. Spell out symbols such as + or @ or replace them with a space, use a hyphen instead of a slash, and remove apostrophes.
- Keep the address short. The IRS allows only 35 characters for a street address, so use USPS standard abbreviations.
Who is the responsible party?
Every EIN application must name a responsible party: the person who owns, controls or exercises effective control over the business and manages its funds and assets. It must be a person, not another company (government entities are the only exception), and you must provide that person’s Social Security number or Individual Taxpayer Identification Number (ITIN).
For a corporation, the responsible party is usually the principal officer; for a partnership, a general partner. A nominee, such as a formation service with limited authority, cannot apply and should not be listed. If your responsible party changes later, report it to the IRS on Form 8822-B.
How to get an EIN online, step by step
Apply online in six steps
- Check that you qualifyThe online tool is for businesses formed in the U.S. or a U.S. territory, with a principal place of business there, applied for by the responsible party or an authorized representative with an SSN or ITIN.
- Gather your detailsLegal name, mailing and street address, entity type, number of members or owners, start date, main activity and the responsible party’s SSN or ITIN.
- Go to IRS.gov onlySearch “Get an EIN” on IRS.gov. Sites that charge a fee are not the IRS.
- Complete it in one sessionYou cannot save and return; the session expires after 15 minutes of inactivity.
- Submit and receive your EINIf approved, the IRS issues the EIN immediately online.
- Save the confirmation letterDownload and print the confirmation for your records, and store a copy with your formation documents.
The IRS tool runs on Eastern time. In Pacific time it is open Monday to Friday from 3:00 a.m. to 10:00 p.m., Saturday from 3:00 a.m. to 6:00 p.m., and Sunday from 3:00 p.m. to 9:00 p.m. You can get only one EIN per responsible party per day.
Other ways to apply
EIN application methods
| Method | How | When you get your EIN |
|---|---|---|
| Online | IRS.gov “Get an EIN” tool | Immediately, if approved |
| Fax | Form SS-4 to 855-641-6935 | About 4 business days, faxed back if you include a fax number |
| Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999 | About 4 weeks; delays are possible | |
| Phone (international only) | 267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern | For businesses whose principal place of business is outside the U.S. |
When you can start using your EIN
The IRS says you can use a new EIN right away for most business needs, such as opening a bank account, applying for business licenses and filing a paper tax return. Allow up to two weeks before you can pass the IRS TIN Matching Program, e-file a return or make electronic tax deposits.
If a return comes due before you have the number, the IRS says to write “Applied For” and the date you applied in the space for the EIN.
When you need a new EIN, and when you don’t
In general, you need a new EIN when your business’s ownership or structure changes, not when its name or address changes. A few examples from the IRS:
- Sole proprietors need a new EIN if they incorporate, form a partnership or declare bankruptcy. Changing the business name or location, or owning several businesses, does not require one.
- Corporations need a new EIN for a new charter from the Secretary of State or a merger that creates a new corporation, but not for electing S corporation status or changing the name.
- LLCs do not need a new EIN to change the name or location, or to elect to be taxed as a corporation or S corporation.
- Partnerships need a new EIN if they incorporate or end and start a new partnership.
What to do next in California
The EIN unlocks the rest of your setup. Here is the usual order for a Sacramento-area business:
- Open a business bank account in the business’s name with the EIN; our business bank account guide lists what to bring.
- Get your local license or tax certificate from your city or the county; see our Sacramento business license guide.
- Register with the EDD within 15 days once you pay employees more than $100 in wages in a calendar quarter.
- Get a seller’s permit from the California Department of Tax and Fee Administration if you sell taxable goods.
- Start building business credit with suppliers and cards that report under your EIN; see business credit vs. personal credit.
Some websites look official and charge a fee to “file” an EIN application for you. The IRS issues EINs for free and warns owners to beware of websites that charge. Some companies may also need to report beneficial owners to the Treasury’s Financial Crimes Enforcement Network (FinCEN); check FinCEN.gov for the current rules rather than paying a third party.
Common mistakes when applying for an EIN
- Applying before the LLC or corporation exists. Form the entity with the state first.
- Listing a nominee or formation service as the responsible party instead of a real owner or officer.
- Paying a third-party site for a free government service.
- Applying twice in one day for related businesses; the limit is one per responsible party per day.
- Losing the confirmation letter. Save it the day you apply; replacing it takes a call or a transcript request.
Key terms
- EIN: the Employer Identification Number, a federal tax ID for businesses and other entities.
- Form SS-4: the IRS application for an EIN, used for fax and mail applications.
- Responsible party: the person who owns or controls the entity and manages its funds and assets.
- Nominee: someone with limited authority during formation who may not apply for an EIN.
- Business application: the Census Bureau’s count of EIN applications that signal new business activity.
The bottom line: getting an EIN is free, fast and best done directly on IRS.gov, after your entity is formed and with your responsible party’s details in hand. Save the confirmation letter, then use the number to open your bank account, register locally and with the EDD, and start building business credit.
Free help in the Sacramento region
You do not have to work through these decisions alone. SCORE Sacramento pairs owners with volunteer mentors, many of them retired executives, bankers and accountants, at no cost. The Sacramento Valley Small Business Development Center offers free one-on-one advising on financing, budgeting and financial statements. The SBA’s Sacramento District Office can explain loan programs and connect you with lenders, and community lenders such as California Capital and Opening Doors serve owners who need smaller loans or extra support. Browse our Business Resources and the free business help guide for more.
Key takeaways
- An EIN is free from the IRS; never pay a website for one.
- Form your LLC or corporation with the state before you apply.
- The responsible party must be a real person with an SSN or ITIN, not a nominee.
- Online, the EIN is issued immediately; fax takes about 4 business days and mail about 4 weeks.
- You can use the EIN right away to open a bank account and apply for licenses.
Frequently asked questions
How much does it cost to get an EIN?
Nothing. The IRS issues EINs free of charge and warns business owners to beware of websites that charge a fee.
How long does it take to get an EIN?
Online, the IRS issues the EIN immediately if the application is approved. By fax it takes about 4 business days, and by mail about 4 weeks.
Can I get an EIN without a Social Security number?
The online tool requires the responsible party’s SSN or ITIN. Businesses whose principal place of business is outside the U.S. can apply by phone, fax or mail.
Does a sole proprietor need an EIN?
Not always. A sole proprietor with no employees and no excise or employment taxes can use a Social Security number, but may request an EIN for banking or state tax purposes.
Do I need a new EIN if I change my business name?
No. The IRS says you generally need a new EIN when ownership or structure changes, not when you change the business name or address.
Sources
- IRS: Get an employer identification number (online application, hours, daily limit)
- IRS: Employer identification number (who needs one, fax and mail, name rules, when to use it)
- IRS: Responsible parties and nominees
- IRS: Do you need a new EIN?
- U.S. Census Bureau: Business Formation Statistics, Oct. 14, 2026 release (September 2026 data)
- U.S. Census Bureau: Business Formation Statistics definitions
- EDD: Step 1, Register as an Employer
Keep reading on Inksight
- Business Credit vs. Personal Credit: What Every Small Business Owner Should Know
- How to Choose a Business Structure in California: Sole Proprietorship, LLC, S Corp or C Corp
- Business Banking 101: How to Choose and Open a Business Bank Account
- Small Business Funding Options: Loans, Grants and Investors
- Business Resources: all guides →
