Search online for “get an EIN” and the first results are often companies that will charge you $75, $150, sometimes $300 to fill out a form on your behalf. The form they are filling out is free. The government agency that issues the number is the IRS, the IRS charges nothing, and in most cases the whole process takes less time than reading this article.
If you are starting a business, hiring your first worker, or setting up a trust or estate, an Employer Identification Number is one of the first pieces of paperwork you will need. Knowing that it costs nothing, and where the real application lives, can save you both money and a headache. Here is how the process actually works.
What an EIN is and who needs one
An EIN is a nine-digit number the IRS uses to identify a business or other entity for tax purposes, the way a Social Security number identifies a person. According to the IRS overview of Employer Identification Numbers, you generally need one if you have employees, operate as a corporation or partnership, file certain excise or employment tax returns, or run certain trusts and estates.
Many sole proprietors with no employees can simply use their own Social Security number on tax forms. But even when an EIN is not strictly required, plenty of freelancers and one-person businesses get one anyway. Banks often ask for an EIN to open a business checking account, and using an EIN on invoices and W-9 forms keeps your Social Security number out of circulation, which is a meaningful identity-theft precaution.
The real application is on IRS.gov
The official route is the IRS page titled Get an employer identification number on IRS.gov. Applicants located in the United States or U.S. territories can apply online at no charge, and the online system validates your answers and issues the number immediately at the end of the session. You can download, save, and print your EIN confirmation letter on the spot.
To use the online application, the person applying must have a valid taxpayer identification number of their own, such as a Social Security number or Individual Taxpayer Identification Number. The application also has to be completed in one sitting, so gather your basic information first: the legal name of the business, its address, the type of entity, and the reason you are applying.
If you cannot apply online, the paper route still works. Form SS-4, Application for Employer Identification Number, can be faxed or mailed to the IRS. Fax applications generally come back in about four business days when you provide a return fax number, while mailed applications take roughly four weeks. International applicants can apply by phone. Every one of those channels is free.
The responsible party rule
Every application must name a “responsible party,” which the IRS defines as the person who ultimately owns or controls the entity or exercises effective control over it. For most small businesses, that is simply the owner. The instructions for Form SS-4 spell out who qualifies, and with limited exceptions for government entities, the responsible party must be an individual, not another company.
Two practical rules flow from this. First, the IRS limits EIN issuance to one per responsible party per day, no matter how you apply. If you are setting up several entities, plan on spreading the applications out. Second, if the responsible party changes later, the business is required to report the change to the IRS on Form 8822-B within 60 days. That filing is also free.
How the paid sites get your money
Third-party filing companies are legal, and some people knowingly pay for the convenience. The trouble is that many customers do not realize they are paying a private company for something the government does for free. These sites often buy search ads on phrases like “EIN application” and “federal tax ID number,” use official-looking seals and eagle logos, and bury the disclosure that they are not affiliated with the IRS in fine print. Some charge recurring fees or upsell “compliance” services on top of the initial charge.
A simple habit protects you here: for any federal filing, start at the agency’s own site, and check that the address in your browser ends in .gov before you enter personal information. An EIN application asks for names, addresses, and taxpayer identification numbers, which is exactly the information you least want to hand to an unknown middleman.
What to do once you have the number
Save the confirmation letter, known as a CP 575, somewhere permanent. Banks, payroll providers, and state agencies will ask for it, and the IRS does not reissue the original. If you lose it, you can request a verification letter by calling the IRS business line, but that takes time you can avoid with a good filing system.
Keep in mind that an EIN is a one-time identifier, not a subscription. There is no renewal, no annual fee, and no maintenance charge, so any notice demanding money to “keep your EIN active” is a scam or an unnecessary service. The number stays with the entity for its lifetime, and even if the business closes, the IRS never reassigns that EIN to anyone else.
The bottom line is worth repeating, because the ads are engineered to make you forget it: the IRS issues EINs free of charge, online, usually in minutes. Ten minutes on IRS.gov gets you the same nine digits the paid sites sell, with no markup and no middleman holding your data.
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