An Employer Identification Number (EIN) is a nine-digit tax ID the IRS uses to identify a business. If you hire workers, open a business bank account, or file federal taxes, you’ll need to apply for an EIN. Luckily, the process is free, fast, and can be done entirely online.
Why Should You Apply for an EIN for Your Business?
Open financial accounts quickly. Most banks insist on an EIN before they’ll let you open a checking or merchant account.
Separate business and personal taxes. Filing with an EIN keeps your Social Security number private and creates a clear audit trail.
Hire employees and run payroll. The IRS requires an EIN to withhold income taxes and report wages.
Register for state sales tax. Many states won’t issue resale or seller’s permits until you apply for an EIN.
Build credibility. Vendors and investors view an EIN as proof that your company is real and ready for growth.
Step-by-Step: How to Apply for an EIN Online in 2025
Good to know: The IRS still offers fax and mail options, but the online application is approved in minutes and provides an instant confirmation letter.
Step 1 – Gather basic details
Have these items ready:
Legal name of the company (or your own name for a sole proprietorship)
Trade name or DBA, if different
Responsible party’s name and SSN/ITIN
Business mailing address and phone
Type of entity: LLC, corporation, partnership, nonprofit, trust, or sole proprietor
First date wages will be paid (if you plan to hire staff)
Collecting them in advance speeds up the moment you apply for an EIN.
Step 2 – Navigate to the IRS EIN Assistant
Go to irs.gov and search “EIN online.” The EIN Assistant opens between 7 a.m. and 10 p.m. ET, Monday–Friday. Click Begin Application and choose your entity type.
Step 3 – Answer identity questions
The system asks why you’re applying (e.g., starting a new business). Confirm the responsible party—this person controls the company’s funds and will sign tax returns.
Step 4 – Provide business information
Enter the address, county, and state where the business is based. If you operate from home, that’s okay—just use your home address.
Step 5 – Describe your activities
Select your industry—from “Retail” to “Technology.” The IRS uses this to assign the correct tax codes.
Step 6 – Receive your EIN instantly
Click Submit. Within seconds you’ll see your new nine-digit number and a CP 575 confirmation letter in PDF form. Save, print, and store it with other official documents.
What If You Can’t Apply for an EIN Online?
International owners without a U.S. residence must fax or mail Form SS-4 to the IRS.
Entities needing multiple EINs in one day (rare) must also use Form SS-4 because the website limits one application per responsible party every 24 hours.
System downtime. If the EIN Assistant is closed for maintenance, you can still fax the form to 855-641-6935 and get a number within four business days.
Common Mistakes When You Apply for an EIN
Mistake | How to Avoid It |
---|---|
Using an employee’s SSN instead of the owner’s | The “responsible party” must be someone who owns or controls the business. |
Typing the wrong start date | Double-check before submitting; changing it later means calling the IRS. |
Forgetting to save the CP 575 PDF | Download immediately; the link expires after you leave the page. |
Applying too early | Wait until the entity is legally formed with your state to avoid duplicates. |
Frequently Asked Questions
Is there a fee to apply?
No. The IRS issues EINs at no charge.
Do single-member LLCs need an EIN?
Yes if you have employees, elect S-corp taxation, or want business banking. Otherwise, you can use your SSN.
Can I reuse an old EIN?
No. Once assigned, an EIN stays with that entity forever—even if ownership changes.
Conclusion
To apply for an EIN in 2025, all you need is 15 minutes, an internet connection, and some basic business facts. Completing the IRS online form gives you an instant tax ID that unlocks bank accounts, payroll services, and state registrations. By following the simple steps above—and avoiding common errors—you’ll secure your Employer Identification Number quickly and keep your company fully compliant.