How to Get a Free EIN
An EIN or Employer Identification Number is like a social security number for your business. Applying for an EIN is easy and FREE through the IRS’s website. After you answer a handful of questions about your business, you will gain instant access to an EIN—there's no wait involved. Not sure if you need an EIN number or want the details on how to get one? We’ve got you. Here’s everything you need to know about EINs!
What Is an EIN?
Also known as a Federal Tax Identification Number, an EIN is a unique number assigned to a business entity. When conducting business activities like opening a business checking account, you can use your EIN number in lieu of your personal social security number, because nobody likes to give out their SSN if they don’t have to!
Does Your Business Need an EIN?
Every business should really get an EIN, but whether or not you legally NEED to get one depends on the type of business you own. If your business is a nonprofit, a corporation, or an LLC that has elected to be taxed as a corporation, you need an EIN. If you’re a sole proprietor or single-member LLC, you don’t technically need an EIN, because you can file your business income and expenses on your personal tax return.
If you fall into the latter two categories, it’s still worth getting an EIN number. Why? You may want to get an EIN simply to avoid using your personal social security number more than necessary. Or you may get one because you plan to grow. Say you’re a single-member LLC currently, but you plan to hire employees someday. You’ll need an EIN to run payroll!
How to Get an EIN
Getting an EIN is completely free from the IRS’s website. Let us reiterate: You do NOT need to pay a third party to get this FREE thing for you. To get your EIN number, fill out the application and answer some basic questions about your business (e.g., what type of business it is, what your business does, etc.). When you’re done, you’ll be able to access your EIN immediately via PDF, as long as you didn’t select the option to have it mailed to you.
Need more help? Follow along with Kelli’s TikTok as she applies for an EIN!
What To Do with Your New EIN
EINs come in handy when it’s time to open a business bank account, apply for a business loan, pay business taxes, or set up payroll. It’s also a great alternative to using your social security number in situations where an EIN isn’t required but is listed as an option to use as an identifier for your business entity.
The Bottomline:
EINs are unique identifiers for business entities. They’re free from the IRS and helpful (possibly also required) to run your business. It doesn’t take long to apply for an EIN! We recommend getting an EIN number after you form your LLC, even if you don’t need one at this very moment.
Have more legal questions? Schedule a pick-my-legal brain call or download the free Business Starter Checklist!