How to Get an IRS EIN Online for Free
An EIN is your business's federal tax ID number. The IRS gives them out free and fast online. Here is how to apply, what to have ready, and the traps to skip.
An EIN is an Employer Identification Number. The SBA describes it as the federal tax ID for your business. It has nine digits, and the IRS gives it away at no charge. You can often get one the same day you apply. Here is how to do it, and what to avoid.
What an EIN is and who needs one
An EIN is a number the IRS uses to track your business for taxes. Picture a Social Security number that belongs to a business rather than an individual.
You generally need one to hire employees. Running a partnership or a corporation generally calls for one too. You generally need one to pay sales and excise taxes. And you generally need one when you change your business structure or its ownership.
Is getting an EIN free? (Yes, and here is how to avoid paying)
The IRS is blunt about this. You never have to pay a fee for an EIN. Not a minor one. Not a processing one. Not ever.
The IRS warns to beware of websites that charge for an EIN.
The fix is simple. Apply at irs.gov and nowhere else. The IRS says you can use its online tool to get an EIN directly from the IRS in minutes for free. A website that wants payment before handing over an EIN is not the one you want. Close the tab and go to the IRS instead.
What you need before you apply
Get these things together first. The application runs on a short clock, and hunting for paperwork mid-form is how people lose their work.
First, form your business with your state. The IRS says to form your corporation or LLC through the secretary of state before you apply for an EIN. If you skip this, your application may be delayed. The state paperwork comes first. The EIN comes second.
Second, you need the Social Security number or taxpayer ID number of the responsible party. This means whoever controls the business. If that is you, have your own number ready. If it is someone else, have theirs.
Third, know your business details. The IRS says the business name you enter must conform to certain formatting rules.
Fourth, make sure you are allowed to apply. You can use the online tool if you are the responsible party or an authorized representative. A third-party designee must have signed authorization to apply. Bringing in a helper for this? Get the authorization signed before they begin.
Applying for an EIN online, one step at a time
Nothing beats the online tool for speed. The SBA says you can apply and get an EIN right away with the IRS tool. Your nine-digit federal tax ID becomes available as soon as the IRS verifies you. Here is the process.
Step 1. Go to the IRS page for the online EIN application. Start at irs.gov. Do not start at a search result that promises a fast EIN for a fee.
Step 2. Confirm you can use the online tool. The tool asks a few questions up front. One is whether your principal place of business is in the U.S. If your business is based outside the U.S., you cannot use the online tool. More on that below.
Step 3. Answer the questions and submit. Answer honestly and completely. The IRS says to answer questions and submit the application, and if it is approved, the IRS will issue your EIN immediately online.
Step 4. Print your confirmation letter. The IRS tells you to print the EIN confirmation letter and keep it. Do it before you close the window.
Now the traps. There are two big ones.
The first is the one-session rule. The IRS says you must complete the application in one session and you can't save it for later. There is no draft mode. If you leave, you start over.
The second is the clock. The IRS says the application expires after 15 minutes of inactivity, and you'll need to start over. With your documents at hand, fifteen minutes goes a long way. Still digging through drawers for them? The time will run out.
One more limit to know. The IRS says you can apply for only one EIN per responsible party per day. If you need numbers for two businesses, plan on two days.
If the online tool is off the table
Some people cannot use the online tool. The IRS says you can't use the tool if your principal place of business is outside the U.S. If that is you, the IRS says to apply by phone, fax or mail instead.
The same options are open to anyone who cannot apply online for other reasons.
When another person files the application for you, the rule matches the one for the online tool. A third party needs your signed authorization to submit the application. Anyone who offers to get you an EIN without that paperwork is cutting corners.
After you apply: your confirmation letter and next steps
If you applied online and were approved, you already have your EIN. It appeared on screen, and your confirmation letter confirmed it. Print that letter and put it somewhere safe.
The SBA says you should apply for an EIN right after you register your business. If you have not formed your company yet, do that first, then come back.
One last note on timing. A common question is how much time the IRS needs to issue an EIN. Online, it is minutes. The number shows up before you close the tab. When the number cannot wait, going online is the one path that gets it done on the spot.