An EIN (Employer Identification Number) is a nine-digit number the IRS assigns to a business. Think of it as a Social Security number for your company. You will be asked for it far more often than the name suggests, and you do not need employees to get one.

When you need an EIN

• You form an LLC or corporation.
• You form an LLC or corporation and want a business bank account. Banks generally require an EIN for an LLC. Sole proprietors can usually open an account with a Social Security number instead, but see below for why an EIN is still the better choice.
• You hire anyone, including a part-time front desk assistant.
• You want to keep your Social Security number off vendor forms, booth-rental agreements, and supplier accounts.

If you are a sole proprietor with no employees and no excise taxes, the IRS does not require an EIN; you can use your Social Security number. Almost nobody should. An EIN is free, takes minutes, and keeps your personal number out of every contract, supplier form, and bank application you sign.

How to get one, free, in about ten minutes

1. Go to the IRS website (irs.gov) and search "apply for an EIN online."
2. Apply during the IRS online application hours. As of this writing they are Monday through Friday 6 AM to 1 AM Eastern, Saturday 6 AM to 9 PM, and Sunday 6 PM to midnight; check irs.gov for the current schedule.
3. Have ready: your legal name, your business name exactly as registered, your business address, and your entity type (sole proprietor, LLC, and so on).
4. Submit. The number is issued immediately on screen. Download and save the confirmation letter (form CP 575) as a PDF. You will need it to open a bank account.

The mistake that costs money

Search results for "get an EIN" are full of third-party sites that charge a fee to "file" for you. Some are styled to look like government pages. They are document-preparation services: they collect your information and submit the same free application you can submit yourself, and the number they hand back is the same number the IRS would have given you directly. The IRS says it plainly: "You never have to pay a fee for an EIN." If a site asks for a payment, close it and go to irs.gov.

Order of operations

If you are forming an LLC, form the LLC first, then apply for the EIN in the LLC's name. If you already have a sole-proprietor EIN and later form a single-member LLC, the IRS lets you keep using that EIN as long as the LLC has no employees, owes no excise tax, and is not electing to be taxed as a corporation. You will need a new EIN if you incorporate, take on a partner, or the LLC starts hiring. Deciding on your structure before you apply keeps this simple.

Keep the letter

Your EIN confirmation letter is one of three documents a bank will ask for, alongside your ID and your formation or fictitious-name paperwork. Store it with your license and your DBPR paperwork.

This is general information, not legal or tax advice. Confirm current requirements with the IRS and a licensed professional.

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